Governance > Definitions
 Average capital employed Average of total shareholders’ funds, minority interests and all interest-bearing debt.
 Average ordinary
 shareholders’ funds
Average of total shareholders’ funds as reflected on the balance sheet, including the equity component of subordinate debentures.
 Cash flow per share Cash flow from operating activities divided by the total number of shares in issue.
 Cash and cash equivalents  Cash on hand, deposits held on call with banks, investments in money market instruments and short-term bank borrowings, excluding current portion of noncurrent borrowings.
 Current ratio Current assets divided by current liabilities. Current liabilities include short-term borrowings and interest-free liabilities other than deferred taxation.
 Diluted headline earnings and
 diluted earnings per share
Headline earnings plus the after-tax cost of the debenture interest divided by the sum of the weighted average number of shares and debentures in issue and the exercisable share options.
 Dividend cover Headline earnings per share divided by the dividend per share.
 Dividend yield Dividend per share expressed as a percentage of the closing share price.
 Earnings yield Headline earnings per share expressed as a percentage of the closing share price.
 Ebit Operating profit before non-trading items.
 Ebitda Operating profit before depreciation and amortisation.
 Effective tax rate Taxation as reflected on the income statement less any tax in respect of nontrading items divided by income before non-trading items less share of profits or losses from associates and joint ventures, expressed as a percentage.
 Headline earnings Earnings per the income statement, adjusted for the specific items as detailed in the notes to the financial statements.
 Headline earnings and
 earnings per share
Headline earnings per share and earnings per share divided by the weighted average number of shares in issue.
 Interest-bearing debt Interest-bearing borrowings, including the short-term portion of long-term borrowings.
 Interest cover Operating income, including associates and joint venture earnings divided by net interest paid.
 Liquidity Number of shares traded, divided by the number of shares in issue.
 Net asset value per
 ordinary share
Total ordinary shareholders’ funds divided by the total number of ordinary shares in issue.
 Net cash generated by
 operations
Cash generated by operations plus or minus decreases or increases in working capital movements.
 Net debt to equity Interest-bearing debt less cash divided by total shareholders’ funds.
 Percentage of market
  capitalisation traded
Value of shares traded divided by closing market capitalisation.
 Return on average
 capital employed
Income before interest paid, taxation and non-trading items, including income from investments and share of associate companies’ retained earnings as a percentage of average capital employed.
 Return on equity Headline earnings as a percentage of average ordinary shareholders’ funds.
 Revenue per employee  Revenue divided by the number of employees.
 Segmental liabilities Trade and other payables.
 Segmental assets Property, plant and equipment, goodwill, inventories, trade and other receivables.