Sure, but that doesn't really answer the problem we are...

Sure, but that doesn't really answer the problem we are discussing. Ill try and summarise it so we can get on track:

1. The concern is, how much of the depreciation is relevant to running the business, noting that what they are depreciating seems to be memberships and leases rather than equipment which we would see in other businesses?
2. It seems to me that this is a really beneficial rule which artificially lowers earnings.

Just to address the idea of adding back depreciation. This wasn't my intent when I wrote it. What I intended was to highlight my thoughts on the depreciation that is being expensed. I view the depreciation as largely irrelevant to business operations going forward whether it is a fit-out as i initially thought, or a lease (im happy to be corrected on this - maybe it is extremely relevant and I just havent considered the correct angle). After having a read of the accounting rules at, https://www.aasb.gov.au/admin/file/content105/c9/AASB16_02-16.pdf , it seems these rules changed in 2019 to allow for leases to be capitalised and therefore depreciated.

The point I was making is that this business is making a lot of cash, and the EPS shouldn't be the guiding light on this business (in my view).