Citrus Inc

Company does not want to sell more shares

The company does not want to borrow more money
The company has a strong negotiating position in respect of its debt
Any cash saved from improved working capital is used to reduce inte
The reason we have not taken interest on positive balances into acc
that they will not be able to pay off their debt in the period we are con
Assuming mining industry will continue as is
Because of the competitive market, price increases are not an option
Operating costs have been minimised
Citrus Inc
CALCULATION

Borrowing ratio
Debt to equity ratio
Liability settlement ratio
Debt settlement ratio
Return on equity
Return on net operating
assets
Current ratio
Quick ratio
 COMPONENTS

Long term loans + total current liabilities / total equity and liabilities
Long term loans + short term loans / share capital
Long term loans + total current liabilities / current retained earnings
Long term loans + short term loans / current retained earnings
Attributable profit / share capital

Attirbutable profit / fixed assets + current assets - current liabilities

Current assets / current liabilities
Total current assets - stock / current liabilities
Citrus Inc
Version 1 1 2 3 4
Profit
Turnover input 417 417 430 440 417
Cost of Sales input 284 284 284 284 284
Overheads input 94 94 94 94 94
Tax rate input 33% 33% 33% 33% 33%
Assets
Fixed Assets input 206 206 206 206 206
Investments input 0 0 0 0 0
Cash input 1 1 1 1 1
Balance Sheet
Share Capital input 100 100 80 80 80
Reserves input 7 7 10 10 10
Long term loans input 100 100 100 100 100
Rates
Short term rates
input 20% 20% 15% 20% 20%
Long term rates input 15% 15% 15% 20% 15%
Dividend cover input 0.00 0.00 3.00 2.00 3.00
Ratios
Debtors days input 30 30 30 28 35
Stock days input 45 45 45 48 93
Creditors days input 60 60 60 55 45

Short term loan

Budget input
Citrus Inc

Income Statement (R millions) Version

1

Turnover ops 417.0

Cost of Sales ops 284.0
Gross Profit ops 133.0
Overheads ops 94.0
Operating Profit ops 39.0
Interest Paid ops 16.5 =(Long_term_loans_ops
Profit before Tax ops 22.5
Tax ops 7.4
Attributable Profit ops 15.1
Dividends ops 0.0 '=IF(ISERROR(Attributab
Retained Income ops 15.1

BALANCE SHEET ops

ASSETS ops
Non-current assets ops
Fixed Assets ops 206.0
Investments ops 0.0
TOTAL Non Current Assets ops 206.0
Current assets ops
Stock ops 35.0
Debtors ops 34.3
Cash ops 1.0
TOTAL Current Assets ops 70.3

TOTAL ASSETS ops 276.3

EQUITY AND LIABILITIES ops

Capital & Reserves ops
Share Capital ops 100.0
Reserves ops 7.0
Current year income ops 15.1
TAL SHAREHOLDERS FUNDS ops 122.1

Non-Current Liabilities ops

Long term loans ops 100.0
AL NON CURRENT LIABILITIES ops 100.0

Current Liabilities ops

Creditors ops 46.7
Short-term loan ops 7.5
TOTAL CURRENT LIABILITIES ops 54.2

OTAL EQUITY AND LIABILITIES ops 276.3

Checktotal Bls ops 0.0000

Gross Profit margin (%) ops 31.9%

Operating Profit margin (%) ops 9.4%
Profit before Tax margin (%) ops 5.4%
Attributable Profit margin (%) ops 3.6%
After tax profit margin (%) ops 3.6%
Dividend Cover (times) ops 0 =IF(ISERROR(Attributab
Interest Cover (times) ops 2.36

Borrowing Ratio ops 0.56

Debt to Equity Ratio ops 1.1
Current Ratio ops 1.3
Quick Ratio ops 0.7

Return on Equity ops 0.15

Return on Net Operating Assets ops 0.07
term_loans_ops*Long_term_rates_input)+(Short_term_loan_ops*Short_term_rates_i

RROR(Attributable_Profit_ops/Dividend_cover_input),0,(Attributable_Profit_ops/Divid
RROR(Attributable_Profit_ops/Dividends_ops),0,Attributable_Profit_ops/Dividends_op
hort_term_rates_input)

e_Profit_ops/Dividend_cover_input))
_ops/Dividends_ops)
Citrus Inc
Citrus Inc
Income Statement (R millions)
Version Base
1 Case

Turnover otp 417 417

Cost of Sales otp 284 284
Gross Profit otp 133 133
Overheads otp 94 94
Operating Profit otp 39 39
Interest Paid otp 17 29
Profit before Tax otp 22 10
Tax otp 7.42 3.00
Attributable Profit otp 15 7
Dividends otp 0.0 0.0
Retained Income otp 15.1 7.0
 BALANCE SHEET
ASSETS
Non-current assets
Fixed Assets 206 206
Investments 0 0
TOTAL Non Current Assets 206 206
Current assets
Stock 35 72
Debtors 34 40
Cash 1 1
TOTAL Current Assets 70 113

TOTAL ASSETS 276 319

EQUITY AND LIABILITIES

Capital & Reserves
Share Capital 100 100
Reserves 7 7
Current year income 15 7
TOTAL SHAREHOLDERS FUNDS 122 114

Non-Current Liabilities
Long term loans 100 100
TOTAL NON CURRENT LIABILITIES 100 100

Current Liabilities
Creditors 47 35
Short-term loan 8 70
TOTAL CURRENT LIABILITIES 54 105

TOTAL EQUITY AND LIABILITIES 276 319

 Ratios
Version Base
1 Case
Gross Profit margin (%) 32% 32%
Operating Profit margin (%) 9% 9%
Profit before Tax margin (%) 5.4% 5.4%
Attributable Profit margin (%) 3.6% 3.6%
After tax profit margin (%) 3.6% 3.6%
Dividend Cover (times) 0.00 0.00
Interest Cover (times) 2.36 2.36

Borrowing Ratio 0.56 0.56

Debt to Equity Ratio 1.08 1.08

Current Ratio 1.30 1.30

Quick Ratio 0.65 0.65

Return on Equity 0.15 0.15

Return on Net Operating Assets 0.07 0.07
 Date Version
01 April 2008 2
02 April 2008 3
12 April 2008 15
12 April 2008 16
12 April 2008 17
12 April 2008 18
12 April 2008 19
12 April 2008 20
12 April 2008 21
12 April 2008 22
19 April 2008 24
29 May 2008 25
### 26
31 July 2008 26
Comment
Inserting formulas
Insert assumptions
Add Asumptions and Log and modify input
Financial statements shown in ops
Eliminate base case in ops
Interst paid ops calculation changed
Closing balance calcs removed
Names of ratio ops changed from output
Unnecessary lines removed
Base case inserted manually
Formulas expanded for demonstration. Change font colour to view
Corrected dividend cover formula not to use output
Ghosted assumptions
Changed interest cover calculation to use Operating Profit not Attributable Profit