ELD General Discussion, page-428

September 2022
Current Assets- Inventory divided by Current Liabilities, $1395m-$484m = $911m divided by $1048m. Ratio= 0.86, less than 1.
March 2023
$1585m-$614m=$971m divided by $1325m. Ratio= 0.73, less than 1.
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You've highlighted a significant swing in the current ratio which is concerning.

I did the same calcs with Lease Liabilities current portion removed (i.e. pre AASB-16) and get 0.9 (FY22) and 0.75 (HY23) so there is a minimal impact there.

Looking at the short term debt, at least there is no significant secured loan (capex) on the books, just WC. I'd be surprised if this isn't re-negotiated to a longer term given the size of Elders but the banks can do strange things at times when spooked.


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On another note, I am trying to find a breakdown of revenue by agri sector but it is a bit hard. Just curious as to how big the viticulture sector (services & products) is on the Elders book. With China hopefully dropping the wine tariffs, there could be one small win among a sea of challenges due to El Niño.