Document ID: chunk:federal_register_of_legislation:F2024L00926:clause:1_3
Version: federal_register_of_legislation:F2024L00926
Segment Type: clause
Provision Reference: sch 1 cl 3
Character Range: 4887–6401

3                    1 to 5                                                                                            2.0

  Determining the financial strength score
 (2) A leviable provider's financial strength score is the sum of the following scores:

 (a) return on assets score;
 (b) debt to equity score.
 (3) For the purposes of subsection (2), the scores are worked out in accordance with the table below:

Ratio             Formula  Below Average                                     Average                                          Above Average
Return on assets           less than or equal to 0.0                         greater than 0.0 but less than or equal to 0.1   greater than 0.1

                           greater than or equal to 2.5;
Debt to equity             or                                                less than 2.5 but greater than or equal to 1.5   less than 1.5 but greater than or equal to 0.0
                           if the total equity is less than or equal to 0.0
Score                      1.5                                               3.0                                              4.5

  where:
  NPBT means the net profit before tax as stated or derived from the financial statement.
  Total assets means the total assets as stated or derived from the financial statement.
  Total equity means the total equity as stated or derived from the financial statement.
  Total liabilities means the total liabilities as stated or derived from the financial statement.