LOL! Took me a good amount of time to find that $349m number.
It appears the AFR muppet has used FY2006/07 to FY2014/15 EBIT number.
EBIT stands for earnings BEFORE INTEREST AND TAX. When looking at net profit conversion it looked pretty healthy to me. A bit of noise with acquistions etc.
Anyway, you gotta knock 30% off EBIT for tax yes? So 70% EBIT to cashflow is BEST CASE scenario. I like it how in there BEST year they converted 76%.
Let add some interest payments there - and 54% doesn't look too bad.
Please someone correct me if I'm wrong here - but I believe cash flow is likely net of interest and tax.
Doesn't take much to write for the AFR if I'm right here. Alex - it doesn't take much to believe everything you read at face value aswell.
DYOR!
SGH Price at posting:
83.0¢ Sentiment: Hold Disclosure: Held
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