Note 10: Financial Risk Management continued 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 Rate3 Non-Interest Bearing Total Average Closing Interest Rate US$m US$m US$m % 2024 2023 2024 2023 2024 2023 2024 2023 Financial assets and contract assets Cash and cash equivalents 1,657 1,548 — — 1,657 1,548 3.8 % 2.2 % Receivables and contract assets (excluding prepayments) — — 2,799 2,001 2,799 2,001 — — Other financial assets — — 163 173 163 173 — — 1,657 1,548 2,962 2,174 4,619 3,722 As at 30 June 2024, cash and cash equivalents includes $772m (2023: $552m) in cash deposits. Credit quality of financial assets 30 June 2024 (US$m) 30 June 2023 (US$m) Government or government-backed entities (such as hospitals) often account for a significant proportion of trade receivables. As a result, the Group carries receivables from a number of Southern European governments. The credit risk associated with trading in these countries is considered on a country-by-country basis and the Group’s trading strategy is adjusted accordingly. The factors taken into account in determining the credit risk of a particular country include recent trading experience, current economic and political conditions and the likelihood of continuing support from agencies such as the European Central Bank. The following table analyses trade receivables and contract assets that are past due and, where required, the associated provision for expected credit losses (Note 13). All other financial assets are less than 30 days overdue. Gross Provision Net 2024 2023 2024 2023 2024 2023 Trade receivables and contract assets US$m US$m US$m US$m US$m US$m Current 2,013 1,468 (5) (5) 2,008 1,463 Less than 30 days overdue 107 55 (1) — 106 55 Between 30 and 90 days overdue 87 38 — — 87 38 More than 90 days overdue 81 51 (10) (7) 71 44 2,288 1,612 (16) (12) 2,272 1,600 128 Notes to the Financial Statements 3 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 are subject to reset within the next six months. Financial Institutions $1,657m Governments $350m Hospitals $272m Buying Groups $1,173m Publicly traded securities $12m Venture fund assets $126m Other $1,029m Financial Institutions $1,548m Governments $291m Hospitals $306m Buying Groups $704m Publicly traded securities $30m Venture fund assets $118m Other $725m Limited Annual Report 2023/24
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