Workshop material, page 83 Nestle case (calculation of Net debt per share) | The Investment Quadrant by The Fifth Person

Questions › Category: Valuation Quadrant › Workshop material, page 83 Nestle case (calculation of Net debt per share)

Tony asked 3 years ago

Hi everyone,
It’s me again. This time, I have a question regarding the case of Nestle on page 83, where the net debt per share is shown to be RM0.74.
I can’t get this calculation from the 18 financial report.
The number of shares, according to page 149, of the report is 234,500,000. By reverse calculation, to get a net debt per share of RM0.74 with 234,500,500 shares, the net debt should be RM173,530,000. However, I can’t seem to find any figure close to this in the STATEMENTS OF FINANCIAL POSITION on page 55.
A little help here please?
Thanks,
Tony

1 Answers

0 Vote Up Vote Down

Victor Chng answered 3 years ago

Hi Tony,

Under the balance sheet, their cash position is about RM7m and their loan and borrowing is 180.3 under the current liabilities.

RM7m – RM180.3m = -RM173.3
Number of share is 234.5
So the net debt is -RM173.3/234.5 = -RM0.74

Tony replied 3 years ago

Oh I see. Thank you!

Victor Chng replied 3 years ago

welcome :)