Dominic Tay Kang Rong asked 8 months ago
Hi
Regarding SBS Transit Annual Report, I see in the Income statement, depreciation is mark as an expense, should it be added back since depreciation is considered a paper loss with no real expense? This is when calculating the EPS for SBS
1 Answers
Rusmin Ang Staff answered 8 months ago
Hi Dominic
For SBS, we will count depreciation as expense. Their depreciation has fallen significant as they've transition into asset-light business, so we shouldn't add them back again. We will simply take the net profit to get the EPS but if the company is structured as Trust, i.e. Netlink Trust, then we will use their operating cash flow (depreciation added back) instead.
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