e r 2 - Umgeni Water

| Financial Ratios ChapterChapter 18. Financial RatiosTable 18.1: Umgeni Water Financial RatiosUMGENI WATER F08 F09 F10 F11 F11 F12 F13 F14 F15 F16Financial Indicators and Ratios Actual Actual Actual Budget ForecastA Performance criteria/indicators1 Volume of water sold (kl'000) 403 754 415 956 425 848 425 978 414 579 413 905 414 273 419 037 425 322 431 7022 Total gross revenue (R'000) 1 280 747 1 485 496 1 622 380 1 614 484 1 683 216 1 853 130 1 700 682 1 819 270 1 947 290 2 082 6883 Total Bulk Revenue (R'000) 1 190 798 1 259 187 1 373 784 1 460 849 1 422 120 1 506 646 1 587 960 1 697 677 1 816 291 1 942 9384 Bulk Revenue Growth 13.62% 5.74% 9.10% 3.52% 5.94% 5.40% 6.91% 6.99% 6.97%5 Weighted average Water tariff (R/kl) (total bulk rev/total bulk vol) 2.949 3.027 3.226 3.429 3.430 3.638 3.831 4.049 4.268 4.4986 Net profit (loss) for the year 391 119 525 638 540 024 485 623 428 481 505 129 434 625 445 795 538 435 602 2077 Cost of raw water (c/kl) 18.370 18.690 19.695 23.882 24.277 36.876 42.371 46.717 51.375 56.5458 Profit from Operations/Revenue 0.435 0.432 0.382 0.345 0.285 0.308 0.291 0.280 0.308 0.3209 Total expenditure/Revenue 0.700 0.667 0.672 0.704 0.740 0.731 0.748 0.759 0.727 0.71410 Cost of sales/Revenue 0.307 0.367 0.383 0.384 0.416 0.452 0.407 0.417 0.426 0.43211 Total cost/volume (Rand/kl) (Consolidated) 2.220 2.382 2.560 2.667 3.003 3.272 3.072 3.294 3.329 3.44612 Total cost/volume (Rand/kl) (Bulk only) 2.021 1.900 2.034 2.330 2.390 2.456 2.801 3.005 3.020 3.12013 Net Finance costs (Rand/kl) 0.410 0.280 0.188 0.166 0.125 0.157 0.146 0.154 0.142 0.14814 Personnel cost ratio (Total Personnel costs/Total Costs excl finance costs) 0.271 0.223 0.223 0.280 0.203 0.222 0.255 0.254 0.265 0.27215 Personnel cost per kilolitre (Personnel costs/Annual volume) 0.491 0.542 0.602 0.743 0.710 0.842 0.908 0.908 1.028 1.08416 Personnel cost per kilolitre (Personnel costs/Annual volume) (Bulk only) 0.454 0.431 0.488 0.655 0.541 0.626 0.674 0.718 0.760 0.80417 Number of employees 799 825 845 910 914 920 920 920 920 92018 Kl'000 sold per employee 505.32 504.19 503.96 468.11 453.59 449.90 450.30 455.47 462.31 469.24B Operating Risks19 Working ratio (total expenses excluding depreciation, amortisation and finance costs divided by Total revenue) 0.449 0.477 0.512 0.537 0.598 0.637 0.644 0.648 0.620 0.61320 Operating Ratio (Total Costs excluding depreciation & amortisation/Total Revenue) 0.578 0.555 0.561 0.581 0.629 0.673 0.680 0.684 0.651 0.64421 Controllable working ratio (total expenses excl. raw water, depreciation amortisation & interest divided by total. rev.) 0.391 0.424 0.460 0.474 0.538 0.555 0.541 0.541 0.508 0.49622 Return on assets (income before interest & taxes divided by total assets excluding investments) 20.53% 22.63% 20.00% 14.25% 14.35% 14.97% 11.71% 10.86% 11.59% 11.39%23 Asset turnover (revenue divided by total assets excluding investments ) 0.472 0.523 0.523 0.414 0.503 0.487 0.402 0.387 0.377 0.35624 Gross margin % 69.29% 63.31% 61.73% 61.64% 58.39% 54.84% 59.26% 58.33% 57.43% 56.83%25 Current asset turnover (revenue divided by current assets excl investments) 7.260 7.421 5.370 7.703 7.205 7.251 7.181 7.267 7.380 7.45326 Fixed asset turnover (revenue divided by fixed assets) 0.555 0.601 0.605 0.438 0.547 0.527 0.429 0.412 0.399 0.37627 Debtors collection period (debtors divided by revenue times 365) (Excl. VAT) * 35.163 37.668 50.672 38.002 38.297 38.597 38.628 38.601 38.513 38.40328 Trade debtors collection period (Trade Debtors divided by revenue times 365) Excl VAT 35.163 37.668 50.672 38.002 38.297 38.597 38.628 38.601 38.513 38.40329 Accounts receivable turnover (revenue divided by accounts receivable) (Excl. VAT) 9.106 8.500 6.319 8.425 8.360 8.295 8.289 8.294 8.313 8.337Umgeni Water Five-Year Business Plan | 2011/2012 to 2015/2016 Page 135