e r 2 - Umgeni Water

| Financial Ratios ChapterUMGENI WATER F08 F09 F10 F11 F11 F12 F13 F14 F15 F16Financial Indicators and Ratios Actual Actual Actual Budget Forecast* Accounts receivable is made up as follows:Trade Debtors 140 656 174 766 256 764 191 626 201 335 223 393 205 179 219 336 234 235 249 805Provision for Doubtful debts - - - - - - - - - -140 656 174 766 256 764 191 626 201 335 223 393 205 179 219 336 234 235 249 805C Financial Risks30 Current ratio (current assets divided by current liabilities) 1.374 0.991 2.434 1.915 2.660 2.744 2.901 2.645 2.465 2.231 Debt ratio (total debt divided by total assets) 0.569 0.486 0.353 0.350 0.315 0.281 0.280 0.246 0.208 0.17232 Gross Debt-equity ratio (total liabilities divided by total accumulated reserves) 2.040 1.283 0.729 0.647 0.558 0.449 0.431 0.358 0.285 0.22333 Net Debt-equity ratio (Net liabilities divided by total accumulated reserves) 1.116 0.482 0.154 0.341 0.120 0.114 0.117 0.109 0.079 0.08434 Weighted Average Cost of Capital (WACC) (Per AFS) 13.22% 12.63% 9.50% 9.51% 9.33% 9.42% 9.52% 9.69% 9.86% 10.02%35 Weighted Average Cost of Capital (WACC) (Finance costs/Gross borrowings) 13.03% 13.52% 15.19% 8.58% 8.41% 7.68% 7.13% 8.06% 8.44% 9.16%36 Net Weighted Average Cost of Capital (WACC) (Net finance costs (excl retic asset interest income)/Net borrowings)37 Financial Leverage (D/(D+E)) (Net of redemption assets) 0.617 0.449 0.419 0.391 0.356 0.308 0.301 0.264 0.222 0.182C Debt ManagementNet DebtTotal Borrowings (as per Balance sheet) 2 078 337 1 978 904 1 517 449 1 637 886 1 400 167 1 353 041 1 487 828 1 394 212 1 262 160 1 124 197Total Investment (as per Balance sheet) 941 315 1 235 897 1 197 295 773 497 1 097 764 1 009 295 1 085 480 970 297 913 297 702 297Net Borrowings (Total Borrowings - Total Investment) 1 137 022 743 008 320 153 864 388 302 403 343 747 402 348 423 916 348 863 421 900D Business Credit Risk38 Interest Cover ratio (EBIT/int paid) 1.949 2.336 2.384 3.960 3.286 4.228 3.626 3.623 4.545 5.56239 EBITDA interest coverage (EBITDA/int paid) 2.633 2.993 3.469 5.370 5.657 6.526 5.770 5.749 7.009 7.88640 Cash from operations/average total debt 0.405 0.376 0.558 0.416 0.518 0.537 0.474 0.513 0.639 0.75241 Return on average total capital 0.546 0.416 0.298 0.220 0.191 0.189 0.144 0.131 0.135 0.13242 EBITDA/Sales 0.557 0.544 0.493 0.467 0.396 0.366 0.360 0.355 0.383 0.39043 Funds flow net debt pay back (cash from op before WC adj/total int bearing debt) 0.343 0.403 0.545 0.461 0.538 0.572 0.475 0.522 0.643 0.759E Surplus Ratios44 Accounting Surplus (NP)/Fixed Assets (PPE) 0.170 0.213 0.201 0.132 0.139 0.144 0.110 0.101 0.110 0.10945 Return on turnover (NP)/Revenue 0.305 0.354 0.333 0.301 0.255 0.273 0.256 0.245 0.277 0.28946 EBITDA 712 847 808 355 799 626 754 265 666 440 678 199 612 063 646 250 746 615 812 33647 Net Debt/EBIDAR 1.595 0.919 0.400 1.146 0.454 0.507 0.657 0.656 0.467 0.519Umgeni Water Five-Year Business Plan | 2011/2012 to 2015/2016 Page 136