Glossary - Financial Terms
Beta factor
The beta factor shows the correlation of a share to a specific index.
ß > 1 means: the share is fluctuating more than the index.
ß = 1 means: the share movements are in line with the index.
ß < 1 means: the share is fluctuating less than the index.
EBIT
Earnings before interest and income taxes
EBITDA
Earnings before interest, income taxes, depreciation and amortization
I/B/E/S
Institutional Broker Estimate System
Investment rate
Investments in property, plant and equipment : Amount of property, plant and equipment at the beginning of the period
ROIC (Return on Invested Capital)
Calculated by:
(EBIT - taxes) : Invested capital
Invested capital = total assets + amortization of goodwill (accumulated) - deferred tax assets - cash and cash equivalents - trade accounts payable - accruals (without pension accruals) - other liabilities not bearing interest
ROOA (Return on Operating Assets)
Calculated by: EBIT x 100 : operating assets (average)
Operating assets = total assets - deferred tax assets - trade accounts payable - payments received on account
US GAAP
United States Generally Accepted Accounting Principles
Working capital
Current assets (including deferred assets) - accruals - trade accounts payable - other liabilities - deferred charges