Fyatu wrote:VituVingiSana wrote:Ericsson wrote:Profit before tax at ksh.3.089bn
Profit after tax at ksh.1.918bn
No dividend declared
After all the drama, this is much better than I expected. Compare this to some firms that have not turned a profit for 6 years running.
Have the accounts been qualified?
What's the EPS?How many shares does KPLC have?
Going by the numbers provided by @Ericsson, the EPS is ksh. 1 or thereabouts. Therefore earnings = 28% given the current share price of 3.6. How is Return on Assets(ROA) calculated for firms such as Kenya power? What is the formula? I told you this firm if well managed can rival Safaricom
The key measure for this company isn't the EPS.
The problem with this company is cashflow and debt.
It's now relying on short term borrowings to meet it's daily obligations.A big chunk of its cash is going towards debt repayments.
A look at the balance sheet and the P&L statement shows that long term debt reduced by ksh.23bn,ksh.7.8bn was spent on finance costs.
The company cashflow position is at negative ksh.7.6bn
The current liabilities have doubled over the past two years.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle