Financial glossary
Acid test –
the ratio of current assets excluding inventories to current liabilities.
Borrowings –
all interest-bearing liabilities, including redeemable preference shares in subsidiaries.
Borrowings ratio –
the percentage of borrowings to fixed capital.
Capital employed –
the total of fixed capital and borrowings.
Current ratio –
the ratio of current assets to current liabilities.
Earnings –
attributable earnings as disclosed in the income statement.
Fixed capital –
shareholders’equity interest, plus minority shareholders’equity interest in subsidiaries.
Headline dividend cover –
headline earnings per share divided by dividends per share.
Market value per share –
the sellers’ price quoted by the JSE Limited.
Net asset value per share –
shareholders’ equity divided by the number of shares in issue at year end.
Operating assets –
total assets less investments, loans, deferred tax and cash.
Operating profit –
is stated before goodwill impaired and capital items.
Price : earnings ratio –
the market value per share divided by the headline earnings per share.
Return on capital employed –
the percentage of operating income to capital employed.
Return on operating assets –
the percentage of operating profit to operating assets.
Return on shareholders’ equity –
the percentage of attributable earnings to shareholders’ equity, adjusted for net capital items, goodwill impaired and translation gains/losses.
Total assets –
property, plant and equipment, investments and loans together with current assets.
| Page updated: 5 January, 2010 | » Return to top |