Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 6D.2.06

Simple corporate bonds--key financial ratios relevant to issuing body

             (1)  For paragraphs 6D.2.04(6)(e) and 6D.2.05(6)(c), the key financial ratios that are relevant to an issuing body are:

                     (a)  the gearing ratio; and

                     (b)  the working capital ratio; and

                     (c)  the interest cover ratio.

             (2)  The key financial ratios referred to in subregulation (1) must be calculated in accordance with subregulations (3) to (5), based on the issuing body's most recent financial statements or, if applicable, the issuing body's consolidated financial statements.

             (3)  The gearing ratio must be calculated using the following formula:

             (4)  The working capital ratio must be calculated using the following formula:

             (5)  The interest cover ratio must be calculated using the following formula:

where:

"EBITDA " means earnings before net interest expense, taxes, depreciation and amortisation, for the period to which the issuing body's most recent financial statements relate.

"net interest expense " means the interest expense net of interest revenue, taking account of any related hedging arrangements recognised in the profit and loss statements, for the period to which the issuing body's most recent financial statements relate.

Note:          The issuing body's most recent financial statements may relate to a period that is less than 12 months.

   



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