Lion Brewery (Ceylon) PLC Annual Report 2011 - Carson and ...

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Glossary of Financial Terms
Appropriations
Apportioning of earnings as dividends, capital and
revenue reserves.
Capital reserves
Reserves identified for specified purposes and
considered not available for distribution.
Cash equivalents
Liquid investments with original maturities of six
months or less.
Contingent liabilities
Conditions or situations at the Balance Sheet date,
the financial effects of which are to be determined
by future events which may or may not occur.
Current ratio
Current assets divided by current liabilities.
Debt
Total fixed interest bearing capital and borrowings.
Dividend cover (Ordinary)
Post tax profit after preference dividend, divided
by gross ordinary dividend. It measures the
number of times ordinary dividends are covered by
distributable profits.
Dividend per ordinary share
Dividends paid and proposed, divided by the
number of ordinary shares in issue which ranked for
those dividends.
Earnings per ordinary share
Profits attributable to ordinary shareholders divided
by the number of ordinary shares in issue and
ranking for dividend.
Equity
Ordinary share capital plus reserves.
Gearing
Ratio of Borrowings to capital employed.
Borrowings include all interest bearing long term
liabilities.
Interest cover
Profits before tax and interest charges divided by
interest charges.
Market capitalisation
The Market value of a company at a given date
obtained by multiplying the market price of a share
by the number of issued ordinary shares.
Net asset per ordinary share
Total assets less liabilities excluding preference
share capital divided by the number of ordinary
shares in issue. This represents the theoretical value
per share if the Company is broken up.
Price earning ratio - (P/E)
Market price of a share divided by earnings per
share
Related parties
Parties who could control or significantly influence
the financial and operating decisions / policies of the
company.
Revenue reserves
Reserves considered as being available for future
distribution and appropriations.
Value addition
The quantum of wealth generated by the activities of
the Company
Working capital
Capital required to finance the day-to-day operations
( current assets less current liabilities).
Events occurring after Balanced Sheet date
Significant events that occur between the Balance
Sheet date and the date on which financial
statements are authorised for issue.