Annual Report 1999739KB - Essent

Definition of financial ratiosCash flow (excluding extraordinaryincome and expense) Net profit, excluding extraordinaryincome, plus depreciation. Extraordinaryincome and expense has been excluded for comparativepurposes.Return on average total equity Operatingprofit (excluding/including extraordinary income andexpense) plus interest income plus profit of participatinginterests x 100%, divided by average total equity.Average total equity excludes the receivable at year-end1999 on the sale of the interest in EPON.Return on average equity Net profit (excluding/includingextraordinary income and expense)x 100% divided by average equity. Glossary of abbreviationsV volt, unit of electric potentialJ joule, unit of electric workA ampère, unit of electric currentVA volt x ampère, unit of apparent capacityW watt, unit of powerWh watt-hour, the number of watts supplied per hourk kilo = 1,000 (kV = kilovolt, kWh = kilowatt-hour,kW – kilowatt)M mega = 1,000 kiloG giga = 1,000 megaFTE Full-Time Equivalent, the number of staff convertedinto full working weeksSolvency Group equity x 100% divided by totalequity at year-end. Total equity excludes the receivableat year-end 1999 on the sale of the interest in EPON.Interest cover Operating profit plus interestincome (including interest on Sep standard reimbursement)divided by interest expense.Gearing Interest-bearing loan capital x 100%divided by interest-bearing loan capital plus groupequity. Interest-bearing loan capital is determined onthe assumption that the receivable at year-end 1999 onthe sale of the interest in EPON will be settled and willresult in a corresponding reduction in interest-bearingloan capital.essent199957other information