CSL Ltd Annual Report 2020

CSL Limited Annual Report 2020 121 c. Credit Risk The Group only invests its cash and cash equivalent financial assets with financial institutions having a credit rating of at least ‘BBB+’ or better, as assessed by independent rating agencies. Floating rate 6 Non-Interest bearing Total Average Closing Interest Rate US$m US$m US$m % 2020 2019 2020 2019 2020 2019 2020 2019 Financial Assets Cash and cash equivalents 1,194.4 657.8 – – 1,194.4 657.8 0.24% 0.5% Trade and other receivables – – 1,572.5 1,726.5 1,572.5 1,726.5 – – Other financial assets – – 17.5 10.3 17.5 10.3 – – 1,194.4 657.8 1,590.0 1,736.8 2,784.4 2,394.6 Refer to Note 15 for the Group’s policy on expected credit loss. The Group has not renegotiated any material collection/repayment terms of any financial assets in the current financial year. Government or government-backed entities (such as hospitals) often account for a significant proportion of trade receivables. As a result, the Group carries receivables from a number of Southern European governments. The credit risk associated with trading in these countries is considered on a country-by-country basis and the Group’s trading strategy is adjusted accordingly. The factors taken into account in determining the credit risk of a particular country include recent trading experience, current economic and political conditions and the likelihood of continuing support from agencies such as the European Central Bank. An analysis of trade receivables that are past due and, where required, the associated provision for expected credit loss, is as follows. All other financial assets are less than 30 days overdue. Trade Receivables Gross Provision Net 2020 US$m 2019 US$m 2020 US$m 2019 US$m 2020 US$m 2019 US$m Trade receivables: current 1,191.0 1,311.8 9.2 3.6 1,181.8 1,308.2 less than 30 days overdue 46.1 18.7 – – 46.1 18.7 between 30 and 90 days overdue 27.7 38.1 – 0.1 27.7 38.0 more than 90 days overdue 47.5 87.8 16.1 13.8 31.4 74.0 1,312.3 1,456.4 25.3 17.5 1,287.0 1,438.9 Credit quality of financial assets (30 June 2020 in $m) Financial Institutions* $1,217.4 Governments $403.7 Hospitals $263.2 Buying Groups $475.7 Other $424.4 * US$1,194.4m of the assets held with financial institutions are held as cash or cash equivalents, $5.6m of trade and other receivables and $17.4m of other financial assets. Financial assets held with non-financial institutions include US$1,572.5m of trade and other receivables and $0.05m of other financial assets. Credit quality of financial assets (30 June 2019 in $m) Financial Institutions* $690.4 Governments $431.5 Hospitals $257.7 Buying Groups $700.9 Other $314.1 * US$657.8m of the assets held with financial institutions are held as cash or cash equivalents, $22.6m of trade and other receivables and $10.0m of other financial assets. Financial assets held with non-financial institutions include US$1,703.9m of trade and other receivables and $0.4m of other financial assets. 6 Floating interest rates represent the most recently determined rate applicable to the instrument at balance sheet date. All interest rates on floating rate financial assets and liabilities are subject to reset within the next six months.