Financial Indicators Clause Examples
The Financial Indicators clause defines the specific financial metrics or benchmarks that are used to assess a party’s financial health or performance under the agreement. Typically, this clause outlines which indicators—such as revenue, profit margins, debt ratios, or liquidity measures—must be monitored, how they are calculated, and the frequency with which they must be reported or reviewed. By establishing clear financial benchmarks, this clause ensures transparency and provides a basis for evaluating compliance or triggering certain contractual rights or obligations if financial thresholds are not met.
Financial Indicators. The key financial indicators of the Project include rate of return of internal investment (also known as internal rate of return, IRR) and period of recovery of dynamic investment and net present value (NPV). The initial result of internal rate of return (IRR) of the Project is 10.8%. The financial data and key indicators are shown in the Tables 1 and 2.
Financial Indicators. [REDACTED]
Financial Indicators. The Recipient shall cause BPC to, ensure that BPC shall, (a) maintain the following annual financial ratios: (i) a debt service coverage ratio of 1.5; (ii) a debt to equity ratio of 70:30; and (b) incorporate measures to achieve these financial ratios in the corporate capital expenditure plan.
Financial Indicators. Subject to the calculation methodology set out at Annex 2 of this Schedule, the Financial Indicators and the corresponding calculations and thresholds used to determine whether a Financial Distress Event has occurred in respect of those Financial Indicators, shall be as follows: Financial Indicator Calculation1 Financial Target Threshold: Monitoring and Reporting Frequency [if different from the default position set out in Paragraph 2.3.1(b)] 1 Operating Margin Operating Margin = Operating Profit / Revenue > 2% Tested and reported yearly in arrears within 90 days of each accounting reference date based upon figures for the 12 months ending on the relevant accounting reference date 2 Net Interest Paid Cover Net Interest Paid Cover = Earnings Before Interest and Tax / Net Interest Paid > 3 times Tested and reported yearly in arrears within 90 days of each accounting reference date based upon figures for the 12 months ending on the relevant accounting reference date 3 Acid Ratio Acid Ratio = (Current Assets – Inventories) / Current Liabilities >0.8 times Tested and reported yearly in arrears within 90 days of each accounting reference date based upon figures at the relevant accounting reference date Key: 1 – See Annex 2 of this Schedule which sets out the calculation methodology to be used in the calculation of each Financial Indicator. Monitored Suppliers Monitored Supplier Applicable Financial Indicators (these are the Financial Indicators from the table in Paragraph 5.1 which are to apply to the Monitored Suppliers) N/A N/A
Financial Indicators. As of the date of the financial statements referenced below, the assignee proves that:
(i) It has working capital (current assets less current liabilities) equal to or greater than 1.2 times the value of the annual payment which the assignee must make to the Carrier for the transportation service Tariff, calculated by multiplying the assigned Contracted Capacity by the current Tariff per Barrel, by 365 days; and
(ii) It has liquid net assets 1.5 times greater than the annual transportation commitment assumed by the assignee, calculated by multiplying the assigned Contracted Capacity by the current Tariff per Barrel, by 365 days. The indicators to which (i) and (ii) above refer shall be supported and demonstrated with (a) certified financial statements, or (b) certified and audited financial statements, in both cases with a cutoff date no earlier than three months prior to the date of the request for approval of the assignment. If only the financial statements to which (a) above refers are submitted, the assignee’s latest available certified and audited financial statements shall also be submitted along with them. When any of these statements show that the assignee does not comply with the indicators to which (i) and (ii) above refer, the Carrier may request reasonable explanations on changes that took place between the latest audited financial statements and the certified financial statements that might have had an impact on the working capital or the liquid net assets. If the explanations are not reasonably satisfactory for the Carrier, it shall have the right to deny the assignment request; or
Financial Indicators. Subject to the calculation methodology set out at Annex 3 of this Schedule, the Financial Indicators and the corresponding calculations and thresholds used to determine whether a Financial Distress Event has occurred in respect of those Financial Indicators, shall be as follows: Dun and Bradstreet Score 45 or above Monitored Suppliers Monitored Supplier Applicable Financial Indicators (these are the Financial Indicators from the table in Paragraph 5.1 which are to apply to the Monitored Suppliers) NOT USED
Financial Indicators i. Compliance with set budgetary levels
ii. Cost reduction
1. Sensitizing staff on judicious use of electrical appliances and lighting
2. Reduce entertainment cost
3. Reduce travelling costs 4. Printing on both sides of the paper
Financial Indicators. 5.1 Subject to the calculation methodology set out at Annex 3 of this Schedule, the Financial Indicators and the corresponding calculations and thresholds used to determine whether a Financial Distress Event has occurred in respect of those Financial Indicators, shall be as follows:
Financial Indicators. Subject to the calculation methodology set out at Annex 3 of this Schedule, the Financial Indicators and the corresponding calculations and thresholds used to determine whether a Financial Distress Event has occurred in respect of those Financial Indicators, shall be as follows: Financial Indicator Calculation1 Financial Target Threshold: Monitoring and Reporting Frequency [if different from the default position set out in Paragraph 2.3(b)] 1 [Operating Margin] OR [The higher of (a) the Operating Margin for the most recent 12 month period and (b) the average Operating Margin for the last two 12 month periods] [Operating Margin = Operating Profit / Revenue] [> [8%]] Tested and reported [yearly / half yearly] in arrears within [120 / 90] days of each [accounting reference date / half year end] based upon figures for the 12 months ending on the relevant [accounting reference date / half year end] 7 [Group Exposure Ratio] [Group Exposure / Gross Assets] [< [25]]% Tested and reported yearly in arrears within 90 days of each accounting reference date based upon figures at the relevant accounting reference date Key: 1 – see Annex 3 to this Schedule which sets out the calculation methodology to be used in the calculation of each financial indicator.
Financial Indicators. Price: $5,195,000