Rangers released the club accounts and while there were some big headlines Ibrox Noise’s resident accountant pored through the numbers to find the real picture behind the tabloid stories.
Ibrox Noise brings you the talking points he found in the accounts themselves:
Now, this is a little concerning – despite all the revenue headlines, ultimately the critical short term debt Rangers are in cannot be resolved any time soon. So, any new short-term debt we take on will be there for some time, until the club is in a position to meet them in the future. Any new lender or indeed investor will be aware they’re not getting that cash back promptly which will discourage them from doing so.
This still isn’t great news. It’s not to worry about but it’s not evidence of a thriving business. The sooner it’s either levelled out or improved, the better.
This is, at last, good news. Basic bill payment has improved by around a third, reducing how long it takes for Rangers to pay rudimental stuff. Not the same as debt.
Ratios matter. This is another sign of progress. The accounts were a bit mixed, but this is a good sign and shows certain aspects of growth which are key.
If you hadn’t already noticed, the current climate sees interest rates climbing and cost of living rising – with interest rates as they are, the ratio of 3.2 is healthy and should allow Rangers to be stable during the economic downturn.
Overall? It is a mixed bag, as you can see here. There’s some very good stuff like the ICR, and CD, but there’s a bit of negative in the debt and inability to pay it.
It’s going in generally the right direction, thanks mainly to a massive hike in revenue the past year, but there’s still more needed. Yet that ICR means that despite all the economic chaos, none of it will have Rangers struggling any time soon.