HY 16 indicates total debt of the company stands at kshs 26,662,270,000.
Shareholders equity stands at kshs 90,955,968,000.
These represents a debt to equity ratio of 29%.
To me this is very healthy.
The management has decided to get another debt of kshs 20 bilion by end of next month.That will make the total debt to rise to kshs 46,662,270,000.
At the current shareholders equity,that will represents a 51% debt to equity ratio.But definitely according to the profit margins,i expect the shareholders equity to increase.This will mean a lower debt to equity ratio.
Since HY results were announced,there have been alot of worries and fear among wazuans.Based on the results alone,these are misguided fears.Maybe if there are other things beyond HY results which we dont know.Let those with the information share with us.
For example,we know the source of kshs 8 billion NPLs from the current total of kshs 32 bilion.Measures are in place to recover them.Next financial year,will be kshs 24 bilion if things stand this way.
I will only treat the following as hearsay,innuendo,maniac,phobic and propaganda unless proved documentary:
1.Going to election year,kcb will be raided by politicians for campaign cash.Being 24% owned by Gok,gives room for phobia.
2.The kshs 32 bilion npls,is as a result of arap samoei weekly harambees where he gives millions in donations.With Ngeny Biwott as board chair,this gives room for mania.
3.The 50/50 power sharing between Tna and urp is reflected in the board chair,Ngeny Biwott and chief financial officer Lawrence Kimathi.This gives room for propaganda.
We need to differentiate facts based on evidence and street talks.