Financial Glossary
Cash and cash equivalents
Bottom line in statement of cash flow/total liquid assets
Cash flow from investment/divestiture activities
Net cash used for/provided from investments/divestitures
Cash flow from operating activities
Net cash used/provided, not influenced by investment, divestiture or financial activities
Corporate governance
Responsible corporate management and supervision with a view to long-term economic value added (EVA)
Current assets ratio
Current Assets : Current Liabilities x 100
Dividend yield
Dividend : Trading Price x 100
Equity ratio
Shareholders’ Equity : Balance Sheet Total x 100 (The higher the ratio, the lower the debt level)
Free-float
Broadly held shares
Gross domestic product (GDP)
Value of economic performance stemming from the domestic production of goods and services during the reporting period
Gross profit
Net sales less cost of sales
Market capitalization
Number of Shares x Trading Price
Operating profit (EBIT)
Earnings before interest and taxes
Operating profit margin (ebit margin)
Operating Profit : Net Sales x 100 (The higher the percentage, the higher the profitability)
Research & development expense ratio
R & D Expenses : Net Sales x 100
Return on equity
Net Income : Shareholders’ Equity x 100
Return on Capital Employed (ROCE)
Ratio between operating profit and the total of property, plant and equipment plus current assets less current liabilities