Glossary of terms
Asset turnover (times)
Revenue divided by total assets (total assets excluding capital work-in-progress).
Cash interest cover (times)
Cash generated from operations after working capital changes, divided by net finance costs (net finance costs include finance costs, finance income and capitalised borrowing costs from the cash flow statement).
Debt (for gearing calculation)
Long-term borrowings, short-term borrowings, employee benefits, derivative financial liabilities plus overdraft less other short-term investments, less derivative financial assets and less cash and cash equivalents.
Profit/(loss) from operations before depreciation, amortisation, impairment of assets, dividend received, post-retirement benefit obligation (costs)/income, fair value adjustments, income/(loss) from associates and net finance costs.
EBITDA expressed as a percentage of revenue.
Issued capital and reserves.
Debt expressed as a percentage of the sum of debt and Shareholder’s equity.
As defined in Circular 2/2013, issued by the South African Institute of Chartered Accountants, all items of a capital nature are separated from earnings (by headline earnings).
Profit/(loss) from operations after depreciation and amortisation but before impairment of assets, dividends received, post-retirement benefit obligation (costs)/income, fair value adjustments, income/(loss) from associates and net finance costs.
Operating profit margin
Operating profit expressed as a percentage of revenue.
Return on total average assets
Operating profit expressed as a percentage of total average assets (total average assets exclude capital work-in-progress).
Non-current and current assets.
Total average assets
Total assets, where ‘average’ is equal to the total assets at the beginning of the reporting year plus total assets at the end of the reporting year, divided by two.
Non-current and current liabilities.