Gareth,Net Borrowings doesn't equal Total Liabilities. For...

Gareth,

Net Borrowings doesn't equal Total Liabilities. For example in a businesses like Bunnings creditors would be large, especially compared with debtors in what is a largely a cash sale business. There would be many other liabilities not included in net borrowings.

Market cap is the share markets valuation of a company and shoudn't be confused with the accounting Net Tangible Assets valuation. These values are linked by the ratio Price/NTA which is usually a multiple of 1 for successful companies. The reason for this is assets are normally kept on the balance sheet at their purchase cost less depreciation. This may have no bearing on their income generating ability which is what you are buying when you purchase the share.