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Distributable income and Net income

Questions › Category: Financials Quadrant › Distributable income and Net income
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Gloria asked 3 years ago

Hi Victor/Rusmin
I was looking through the financial statement for CMT for 2008 and have some questions below:
-Why is the distributable income is higher than net income?
-Do we need to add the convertible bonds into the formula for gearing ratio?
Thanks!
 

1 Answers
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Victor Chng answered 3 years ago

Hi Gloria,
 
For your information, CMT is a REITs which is not cover in investment quadrant as we focus on growth stocks here. Hence, do note that the metric use to analyse REITs are different. 
 
Sometime the management may want to maintain the dividend trend so they payout more. In CMT case, their cash flow is still high so it does not affect them. 
 
Convertible bonds are a type of debt so I will include in debt calculation.

Gloria replied 3 years ago

Hi Victor

Noted and thanks!

Victor Chng replied 3 years ago

Welcome :)