Question

QUESTION 3 Using the financial data for the sample of Industrials companies in the table below, calculate the average Financial Leverage. ASX Code Company Name Operating Revenue Reported NPAT After Abnormals Total Assets Total Equity Market Cap. TPS Threat Protect Australia Limited 19,741,000 -10,621,000 72,159,000 10,415,000 33,733,878 OLH Oldfields Holdings Limited 24,755,000 -228,000 12,313,000 4,384,000 8,217,619 CWY Cleanaway Waste Management Limited 2,249,400,000 123,200,000 4,193,200,000 2,582,800,000 3,979,750,784 JLG Johns Lyng Group Limited 335,085,000 15,879,000 134,828,000 45,285,000 608,956,725 MND Monadelphous Group Limited 1,477,269,000 52,113,000 684,986,000 394,681,000 1,546, 189,919 IVT Inventis Limited 11,798,019 -1,669,750 6,519,605 -3,073,784 4,684,329 AIR Astivita Limited 4,648,000 -583,000 10,095,000 9,072,000 1 3,884,130 AIA Auckland International Airport Limited 685,528,579 500,382,336 8,313,037,660 5,766,488,243 9,768,924,888 SRH Saferoads Holdings Limited 17,946,570 -41,586 15,375,095 7,341,514 6,370,000 EAX Energy Action Limited 24,801,100 -12,092,885 16,185,150 5,693,759 6,358,758 BPP Babylon Pump & Power Limited 11,509,158 -2,209,222 11,404,283 2,251,493 13,398,030 AWN Arowana International Limited 105,620,618 -12,144,785 134,663,443 66,058,053 17,398,787 QUB Qube Holdings Limited 1,621,000,000 195,700,000 4,747,600,000 2,813,400,000 5,495,325,494 Reece Limited 5,463,787,000 202,100,000 4,474,110,000 1,991,580,000 6,550,410,946 Rectifier Technologies Ltd 17,725,540 2,127,038 14,225,426 7,244,906 57,450,285 Environmental Clean Technologies Limited 207,472 -8,903,015 2,386,854 -2,021,846 8,692,979 Air New Zealand Limited 5,529,535,461 258,076,849 7,413,496,463 1,996,750,143 3,009,222,528 SRG Global Limited 486,391,000 9,419,000 430,638,000 252,728,000 162,715,691 QIP QANTM Intellectual Property Limited 112,170,000 11,206,000 107,043,000 70,581,000 172,300,687 LCM Logicamms Limited 35,030,000 181,000 59,070,000 25,261,000 37,182,527 ANG Austin Engineering Limited 235,206,000 -4,590,000 177,355,000 101,398,000 110,011,031 Croplogic Limited 2,190,539 -4,746,735 6,732,456 4,380,367 12,914,768 ECG Ecargo Holdings Limited 24,321,000 -24,363,911 30,670,899 8,392,691 25,840,500 PET Phoslock Environmental Technologies Limited 8,985,878 -668,840 27,483,316 23,996,741 463,293,189 TTI Traffic Technologies Ltd 48,321,000 1,263,000 45,465,000 21,160,000 6,268,921 MSI Multistack International Limited 713,477 -713,756 2,615,446 1,768,622 1,010,735 XTE XTEK Ltd 37,860,848 168,433 30,412,286 7,695,941 27,381,112 ACF Acrow Formwork and Construction Services Limited 68,858,910 4,948,715 75,299,710 47,623,052 70,023,861 REH *20 Ест SRG

Using the financial data for the sample of Industrials companies in the table below, calculate the average Financial Leverage.

Answer 1

ASX CODE	COMPANY NAME	Total Assets($)	Total Equity($)	Total Debt($)	Financial Leverage
TPS	Threat Protect Australia Limited	721,59,000	104,15,000	617,44,000	5.9284
OLH	Oldfields Holdings Limited	123,13,000	43,84,000	79,29,000	1.8086
CWY	Cleanaway Waste Management Limited	41932,00,000	25828,00,000	16104,00,000	0.6235
JLG	Johns Lyng Group Limited	1348,28,000	452,85,000	895,43,000	1.9773
MND	Monadelphous Group Limited	6849,86,000	3946,81,000	2903,05,000	0.7355
IVT	Inventis Limited	65,19,605	-30,73,784	95,93,389	-3.1210
AIR	Astivita Limited	100,95,000	90,72,000	10,23,000	0.1128
AIA	Auckland International Airport Limited	83130,37,660	57664,88,243	25465,49,417	0.4416
SRH	Saferoads Holdings	153,75,095	73,41,514	80,33,581	1.0943
EAX	Energy Action Limited	161,85,150	56,93,759	104,91,391	1.8426
BPP	Babylon Pump & Power Limited	114,04,283	22,51,493	91,52,790	4.0652
AWN	Arowana International Limited	1346,63,443	660,58,053	686,05,390	1.0386
QUB	Qube Holdings Limited	47476,00,000	28134,00,000	19342,00,000	0.6875
REH	Reece Limited	44741,10,000	19915,80,000	24825,30,000	1.2465
RFT	Rectifier Technologies Limited	142,25,426	72,44,906	69,80,520	0.9635
ECT	Environmental Clean Technologies Limited	23,86,854	-20,21,846	44,08,700	-2.1805
AIZ	Air New Zealand Limited	74134,96,463	19967,59,143	54167,37,320	2.7128
SRG	SRG Global Limited	4306,38,000	2527,28,000	1779,10,000	0.7040
QIP	QANTM Intellectual Property Limited	1070,43,000	705,81,000	364,62,000	0.5166
LCM	Logicamms Limited	590,70,000	252,61,000	338,09,000	1.3384
ANG	Austin Engineering Limited	1773,55,000	1013,98,000	759,57,000	0.7491
CLI	Croplogic Limited	67,32,456	43,80,367	23,52,089	0.5370
ECG	Ecargo Holdings Limited	306,70,899	83,92,691	222,78,208	2.6545
PET	Phosloack Environmental Technologies Limited	274,83,316	239,96,741	34,86,575	0.1453
TTI	Traffic Technologies Ltd	454,65,000	211,60,000	243,05,000	1.1486
MSI	Multitack International Limited	26,15,446	17,68,622	8,46,824	0.4788
XTE	XTEK Ltd	304,12,286	76,95,941	227,16,345	2.9517
ACF	Acrow Formwoork and Costruction Services Limited	752,99,710	476,23,052	276,76,658	0.5812

Average Financial Leverage=

1.1351