Ann: Q2 FY22 - Zip momentum continues, page-112

You really don't get it do you..

You keep falling for the fluffy headline numbers issued by the company.

Why don't they publish the USA bad debts and arrears they have those numbers at their fingertips on a daily basis.

A fall in gross transaction margin and increase in bad debts as measured against transaction volumes as a far greater impact on bottom line than a small saving in interest expense as this only forms a small part of their overall expenses.

On a 10 billion annualised sales a 18 percent reduction in gross transaction margin from 7 percent to 5.8 percent reduces income by $120 million.

On the same metrics as bad debt was running at 47.84 per cent of nett distributable income at last financials a 18 percent increase in bad debts pushes this to 56.5 of distrutable income.

Bad debts at last financials was $94 million in sales of 3.4 billion

On an estimated ten billion sales bad debts will be in the region of $260 million which will dwarf any saving in interest expense.

Bear in mind if the USA bad debt was not horrible they would publish it.

on these metrics it's only a matter of time before they go bust.