2021-02-09 Services & Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                           9 FEBRUARY 2021


Cash on Hand ($’000)
                                                                                                  The cash position
                                                                                                    averaged $836k
                                                                                                    between 2015 and
                                                                                                    2019
                                                                                                  Cash dropped
                                                                                                    significantly in 2020
                                                                                                    due to negative cash
                                                                                                    flows from operating,
                                                                                                    investing and
                                                                                                    financing activities




Working Capital Ratio (Times)
                                                                                                  The working capital
                                                                                                    ratio indicates
                                                                                                    whether an entity has
                                                                                                    enough short-term
                                                                                                    assets to pay its
                                                                                                    short-term liabilities
                                                                                                  A benchmark of 1.6
                                                                                                    times is
                                                                                                    recommended as a
                                                                                                    minimum coverage
                                                                                                    to manage solvency
                                                                                                    risk
                                                                                                  The TN ratio at 30
                                                                                                    June 2020 is below
                                                                                                    the recommended
Note: The working capital ratio is calculated by dividing total current assets by current           benchmark
liabilities


Free Cash ($’000)
                                                                                                   Positive free cash
                                                                                                     flow is indicative of
                                                                                                     overall organisation
                                                                                                     financial health
                                                                                                   TN has a negative
                                                                                                     free cash position as
                                                                                                     at 30 June 2020
                                                                                                   Negative cash flows
                                                                                                     from operating
                                                                                                     activities in 2020 of
                                                                                                     $328k has
                                                                                                     contributed to the
                                                                                                     reduction in free
                                                                                                     cash holdings

Note: Free cash reflects available cash at bank less current liabilities owing to suppliers and employee provisions payable




                                                                                                                 Page 82 of 100