Perhaps. But what value Coles is currently adding to WES is (in my opinion) more determined by what sustainable return on tangible operating capital it is generating. Whatevet WES paid in the past (and is reflected in the goodwill) is in the past. It has little relevance in terms of what value WES is extracting today.
In terms of the ROIC record of an acquisitive business, yes, inclusion of goodwill is important in that it tells us about the track record. But then you have to ask yourself, how much has that been influenced by one acquisition, and how reflective is that one acquisition of WES's "DNA", and thus how indicative is it of the future.
So I'm not at this stage sure how your argument supports the premise that "Coles' usefulness has ended".
Perhaps. But what value Coles is currently adding to WES is (in...
Add to My Watchlist
What is My Watchlist?
