2.1 Matters relevant to understanding WorleyParsons' financial position

Download
Print
Chart
Generator

Our financial capacity remains strong given our cash, gearing and debt positions.

 

 
FY2016
$'M
FY2015
$'M
Comments
Movement

1. Operating cash flow

192.0

251.3

Our operating cash flow comprises the payments we receive from our customers less the amount we pay our suppliers plus related interest and tax paid. In our financial statements, operating cash flow is called net cash inflow from operating activities.

Our operating cash flow for FY2016 represents a high cash conversion rate of 125% of underlying NPAT, an improvement over last year's 103%.

2. Gearing ratio

29.2%

28.0%

Our gearing ratio is our net debt divided by the sum of our net debt and our total equity, at the end of the financial year. Refer to Note 12 to the Financial Statements for the calculation of the gearing ratio.

Our gearing ratio increased by 1.2 percentage points in FY2016 when compared with that for FY2015.

This ratio is within our gearing target of 25% to 35%.

3. Debt facility utilization

57%

59%

Our debt facility utilization is the percentage of our debt facilities that we were using at the end of the financial year.

Our debt facility utilization decreased by 2 percentage points in FY2016 when compared with that for FY2015, due to improvements in cash collection.

4. Loan and overdraft facilities

2,182

2,087

Our loan, overdraft lease facilities are the amount of our debt facilities at the end of the financial year.

The amount of our loan, overdraft and lease facilities increased during FY2016, due to foreign exchange translation.