OK I did some work on the financials using the 2001 financial report (10k)looking at note 7. debt is not 150m but 180m bcs the notes were oversubscribed. interest payable is at 4% (i think the explanation was a bit hard for me to understand)debt to equity ratio = borrowings - cash ----------------- shareholders equity = (180,000-40136)/100366 = 139%interest cover = EBIT/net interest payments = 26042/762 = 34.18so my conclusion is this - debt to equity ratio is very high - i'm not happy about it. However, interest coverage is 34x - which is excellent and they don't have a problem paying that.looking at the 10Q - septemberdebt to equity = (180,000 - 60,444)/116,625 = 103%interest cover = 13187/735 = 17.94so doing a comparision - though you can't really compare annual to quarterly results - debt to equity ratio - moving downwards (that is definitely a positive); interest cover still greater than 3 - so the company looks good from this angle.if you look further into the 10k (the 10Q, doesn't really have notes attached) - sales in all its segments have increased substantially ie in US, , Germany, France, australia and rest of the world. the totals are as follows:(in thousands) 2001 2000 1999 $155,156 $115,615 $88,627of course I have to do more analysis - inventoris, recievables, versus sales, free cash flow, gross profits, ROIC.but I think it is OK for now.If you want to do a more detailed analysis - let me know and we can do it together.I hope the above helped - though it would not have helped the valuation.regardsJudyI spoke to my broker about 2 weeks ago about resmed - the share price dropped bcs another company has brought out a competitive sleep disorder machine - it is not yet on market. Fischer and Paykel healthcare share price also dropped as did the other main US competitor (I can't remember the name) - he thought it was an over-reaction - so lets watch it and see if we can pick up a bargain.
debt to equity ratio = borrowings - cash ----------------- shareholders equity = (180,000-40136)/100366 = 139%interest cover = EBIT/net interest payments = 26042/762 = 34.18
2001 2000 1999 $155,156 $115,615 $88,627
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