Hi sdeakin
In my opinion NPAT is normally more important than EBITDA.
Make sure you have a look at the 'Cash Flow statement' in the half year report, as well as the 'Balance Sheet' and the 'Profit or Loss statement'.
On the 'Balance Sheet' some items to check would be:
Assets: Cash, Trade and other receivables
Liabilities: Trade and other payables, Borrowings, Deferred consideration
On the 'Cash Flow statement' check that they have positive ‘Cash Flows From Operating Activities’
Also check ‘Cash Flow From Investing Activities’, ‘Cash Flows From Financing Activities’ and ‘Net increase / (decrease) in cash held’.
From last years Cash Flow statement (HY16):
‘Cash Flows From Operating Activities’ =
$2.1m
‘Cash Flow From Investing Activities’ =
(negative $11.6m)
The majority of this was payments for investments which was paid from cash and an increase in borrowings (see below).
‘Cash Flows From Financing Activities’ =
$5.1m (mainly Proceeds from borrowings)
‘Net (decrease) in cash held’ =
(negative $4.5m)
View attachment 455531
