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Tiger Brands Limited integrated annual report
2015
Definitions
Financial definitions
Abnormal items
Items of income and expenditure which are not directly attributable to normal operations or where their
size or nature are such that additional disclosure is considered appropriate
Asset turnover
Turnover divided by the average of net assets, excluding cash resources, short-term and long-term
borrowings, taxation, shareholders for dividends and the carrying value of investments, at the beginning
and end of the financial year
Cash flow to net
liabilities
Cash generated from operations after interest and taxation as a percentage of total liabilities, less cash
resources
Current ratio
Ratio of current assets to current liabilities
Dividend cover
Headline earnings per share divided by the total ordinary dividend per share for the year, comprising
the interim dividend paid and final dividend declared post-year end. Where applicable, the
denominator includes the capital distribution paid out of share premium. For 2010, the dividend cover
includes once-off empowerment transaction costs in headline earnings
Dividend yield
Dividends and capital distributions per share as a percentage of year end market price per share
Earnings yield
Headline earnings per share as a percentage of year end market price per share
Effective taxation rate
Taxation charge in the income statement as a percentage of profit before taxation
Headline earnings
per share
Headline earnings divided by the weighted average number of ordinary shares in issue during the year
(net of treasury and empowerment shares)
Net debt
Cash and cash equivalents less long and short-term borrowings
Net funding
Capital and reserves, non-controlling interests and long and short-term borrowings net of cash
Net interest cover
Operating profit plus dividend income divided by net finance costs
NPAT
Net profit after taxation
Net worth per
ordinary share
Interest of ordinary shareholders after deducting the cost of treasury and empowerment shares divided
by the number of ordinary shares in issue at the year end, excluding treasury and empowerment shares
Operating margin
Operating profit as a percentage of turnover
Price:earnings ratio
Year end market price per share as a multiple of headline earnings per share
Return on average
net assets employed
Operating profit as a percentage of the average of net assets, excluding cash resources, short and
long-term borrowings, taxation, shareholders for dividends and the carrying value of investments, at the
beginning and end of the financial year
Return on equity
Profit attributable to ordinary shareholders excluding abnormal items divided by issued capital and
reserves
Total equity
Includes ordinary share capital and share premium, less treasury shares and shares held by
empowerment entities, plus reserves and non-controlling interests
Total liabilities
Long-term liabilities and current liabilities
Working capital per
R1 000 revenue
The average of inventory and receivables less payables, excluding dividends payable to shareholders
and taxation, at the beginning and end of the financial year, divided by turnover