Question
Income statement Current year Last year Revenue 2,000.00 1,856.0 COGS -1,150.0 -1,089 Gross profit 850.0 767.0 SG&A -269.0 -243.0 Add back depreciation 60.0 74.2 Reverse
Income statement | Current year | Last year |
Revenue | 2,000.00 | 1,856.0 |
COGS | -1,150.0 | -1,089 |
Gross profit | 850.0 | 767.0 |
SG&A | -269.0 | -243.0 |
Add back depreciation | 60.0 | 74.2 |
Reverse expectation | 28.0 | -12.0 |
EBITDA | 689.0 | 586.2 |
Deduct deprecation | -80.0 | -74.2 |
EBIT | 609.0 | 512.0 |
Add back deprecation | -28.0 | 12.0 |
Opening profit | 581.0 | 524.0 |
Interest | -82.0 | -76.0 |
Pre- tax profit | 499.0 | 448.0 |
Tax | -99.0 | -89.6 |
Profit for the year (Net profit) | 399.2 | 358.4 |
Balance statement | Current year | Last year |
Cash | 100.00 | 92.8 |
Receivable | -250.0 | 220.0 |
Investment | 150.0 | 135.0 |
Other current assets | 50.0 | 46.4 |
Total current assets
| 550.0 | 494.2 |
Property, plant, and equipment | 1,640.0 | 1,520.0 |
Intangible assets | 10.0 | 76.8 |
Total non-current assets
| 1,650.0 | 1,596.8 |
Total assets
| 2,200.0 | 2,090.0 |
Payables | 120.0 | 105.0 |
Short-term debt | 55.0 | 50.0 |
Current portion of long-term debt | 50.0 | 125.0 |
Other current liabilities | 24.0 | 21.0 |
Total current liabilities
| 249.0 | 301.0 |
long-term debt | 275.0 | 210.0 |
Total non-current liabilities
| 275 | 210.0 |
Total liabilities
| 524.0 | 511.0 |
Total equity | 1,676.0 | 1,579.0 |
Total liabilities and equity
| 2,200.0 | 2,090.0 |
Net operating working capital
| 280.0 | 250.0 |
Leverage (Net debt\EBITDA) | 0.41x | 0.50x |
Coverage (EBIT\interest) | 7.43 x | 6.74x |
Liquidity (quick ratio) | 1.61x | 1.19x |
Gearing (total debt\total equity) | 41.3% | 50.9% |
Cash Flow Statement extracts |
|
|
Profit for the year (Net profit) | 399.2 |
|
Add back depreciation | 80.0 |
|
Charge in working capital | -30.0 |
|
Cash flow from operating
| 449.2 |
|
Funds from operation (FFO) | 479.2 |
|
Capital expenditure | -200.0 |
|
Dividend paid | -302.2 |
|
- Dubai Auto group has a board agreement that restricts EBIT/Interest expense to more than 6.0x. Given that constraint, and assuming the firm could borrow new money for 7.00%, what is the maximum additional debt the firm could borrow, based on the current year's EBIT and interest expense?
- 101.5
- 278.6
- 469.0
- 1,450.0
- Dubai Autos group is requesting an increased working capital facility to allow the firm to hold more used cars in inventory. What is the most appropriate facility structure to accommodate this request?
- Amortizing term loan.
- Receivable financing.
- Revolving credit.
- Trade finance.
- Based on the strength of the security, which of the following assets of Dubai Autos Group Ltd would be most likely to provide the strongest protection if taken as security?
- Intangibles: long terms exclusive distribution agreements for the GCC with leading car manufacturers.
- Inventory: a mix of new and used cars.
- Other current assets: largely pre-payment.
- PP&E: a range of dealership premises located across the UAE.
- What happened to Dubai Auto groups key credit metrics during the current year?
- Leverage improved, coverage improved, liquidity improved, and gearing improved.
- Leverage improved, coverage weakened, liquidity weakened, and gearing weakened.
- Leverage weakened, coverage improved, liquidity improved, and gearing improved.
- Leverage weakened, coverage weakened, liquidity weakened, and gearing weakened.
- What was Dubai Autos Groups credit-free cash flow for the current year?
- -103.0
- -53.0
- -23.0
- 177.0
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