Originally Posted by
43Inches
$1.6 bil of the cash they are claiming to have on hand is not in hand yet, therefore not borrowed, therefore not included in the liabilities/debt. The cash statement is just a nice line to say to investors "don't worry, we have money"
This is getting a tad tiresome.
Read QF's ASX statement from yesterday. They didn't claim to have the $1.6 billion in undrawn facilities as cash on hand - that seems to be your mistaken interpretation.
QF state quite clearly that,
Liquidity levels remain strong with total funds of $4.0 billion, including cash of $2.4 billion and $1.6 billion of undrawn debt facilities as at 30 April 2021.
The keen observers will note that the terms "cash" and "undrawn debt facilities" are used in a mutually exclusive fashion.
Originally Posted by
43Inches
In simple terms, a business signs an agreement to borrow $3 billion to cover a downturn, they use $1.4 billion and have $1.6 billion still available to take if required. The $1.6b can be considered available cash, and since it has not been taken yet, its not considered a debt.
In simple terms,
no, the $1.6 billion in undrawn facilities cannot be considered as available cash, at all. That would be "magic pudding" accounting . The $1.6 billion in undrawn facilities is considered
liquidity. Liquidity is different to, but includes, cash and cash equivalents.