Own CSL shares? Here's a look at the biotech's balance sheet

CSL shares have lent investors strategic upside early in FY23.

Key points
  • CSL shares have lifted in July to bring a bullish flavour to the new financial year
  • Investors have rallied the share more than 8% higher in July in almost vertical fashion
  • CSL has a book value per share of $32, according to its latest financial statement 

Shares in biotech giant CSL Limited (ASX: CSL) have rerated in FY23. In fact, they have now pushed just over 8% into the green since the start of the month.

That's ahead of the 6% return for the S&P/ASX 200 Health Care Index (ASX: XHJ) over the same period.

CSL shares finished the session on Tuesday at $290.66 — down 2.02% for the day.

Following the company's announcement of its acquisition of Vifor Pharma AG last year, current global supply chain headwinds, and (hopefully) a wind back in global COVID-19 cases, let's take a look at CSL's financial position and the book value of CSL shares.

A man sitting at his dining table looks at his laptop and ponders the share price.

Image source: Getty Images

CSL balance sheet

From its semi-annual report in December 2021, CSL reported cash & equivalents of $8.7 billion. Notably, some of this will have been allocated to the acquisition.

It had total assets of more than $32 billion, or around $24 billion minus the cash and marketable securities.

On this amount, it held debt of around $7.6 billion. The interest on this debt was covered more than 32 times from operating income.

This gives CSL a total debt ratio of around 24%. Its total capital base is financed at around 28% with debt.

Meanwhile, short-term obligations are covered 5 times from liquid assets, and around 3.4 times when separating CSL's inventory. This means it should meet its financial obligations as they come due.

As such, it had around $13.6 billion in working capital as at December 2021. That's up from $5.7 billion in the prior half.

Book value of CSL shares

With this, shareholders held equity of more than $19.3 billion in the biotech giant. That provides a book value per share of $32.

This year to date, CSL shares have fallen 1.8% but are up 1.46% over the past 12 months.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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