calculate debt servicing ratio of Yanlord Land - Dividend Machines by The Fifth Person

Q&A › Category: Dividend Stocks › calculate debt servicing ratio of Yanlord Land

Emily asked 1 week ago

Hi!

I have calculated the debt servicing ratio of Yanlord Land as follows. The data is extracted from the cash flow statement as attached.

interest paid 730,386.00

interest received 90,349.00

net interest 640,037.00

net operating CF 761,164.00

debt servicing ratio 84.09%

Please advise whether I have computed correctly.

Also there is this interest paid of $963,116 at the bottom. Do I need to take it into consideration for the computation?

Attachments

yanlord-4.pdf

1 Answers

0 Vote Up Vote Down

Rusmin Ang Staff answered 1 week ago

Hi Emily Yanlord has property development arm, so the operating can be lumpy from time to time. I would personally adjust the figure. Adjustment can be made: Operating cashflow before working capital less interest paid and income tax. After making adjustment, the debt to servicing ratio seems to be very high as well. Look risky to me.

Emily replied 1 week ago

Thank you, Rusmin for the feedback.

So I take 3287548 – 963116 – 1792323 = 532109. And I use 532109 as the net operating CF. Am I right?

Rusmin Ang Staff replied 1 week ago

That’s right! Can work in millions, so less number to type. Example: 3,287m – 963m.