There's no one rule of thumb. It all depends on type of business...

There's no one rule of thumb. It all depends on type of business and it's circumstances. And then year to year there's always different lumps and anomalies. In theory, they should approximate over time.

Some businesses consistently convert at >100% at EBIT and NPAT levels.

A business consistently converting <80% will have validity of its P&L accounting questioned by analysts. It's not end of world, just can lead to a discount on multiple type valuations, unless good reason for lack conversion.

In this situation, with very high debt, it's whole different discussion. The discussion is about how much cash coming in to give comfort to lenders - they couldn't give a hoot accounting profits. If for arguments sake there's much less cash coming through at EBIT level for SGH than accounting EBIT, as per Schroders historic analysis, this what banks are looking at - over this and next years - not the accounting EBIT or NPAT.