what just happened?, page-58

Hi noomxx - and every one else,
I have a number of concerns about this company.
Noomxx - I need help arriving at your debt - equity ratio of 24%. Looking at the Balance sheet in the annual report, as at 30 June 10 they had total assets of 500m which we should (as you say) subtract the lease receivables of 36m and 78m C and NC assets respectively. So we now have 386m of TA.
They have total liabilities of 270m, from which we remove the debts associated with the leases - 8m and 93m- so we now arrive at total liabilities of 169m. From this we have 169/386 of 43%. Frankly - this number is extraordinarily small in my view, given that one MUST subtract the 'intangible assets' - goodwill - from the TA since this has very little, in fact no bearing at all with respect to the credit or solvency risk of any entity as the value associated with goodwill typically goes to zero in the midst of a fire sale.
So subtracting the intangibles, (which i must say constitute a HUGE amount of the company's assets), we end up with a debt - equity ratio of 127%.
Frankly, from a purely accounting standpoint this company is actually insolvent (-ve equity).
That is not to say that the company will infact go insolvent, but the with a such a poor balance sheet, the solvency of the company is predicated on its earnings..

... speaking of which (this is a question I raise to anyone - not necessarily trying to make a point, just asking an honest question)
How in gods name does a company which has receivables 156%, or 1.56x its net profit manage to incure no bad debts??

Thanks in advance to noomxx and - & anyone else - who might be able to help me out with my concerns.