Proceedings

� Leverage (GI) - reflect the total liabilities to total assets and follows the
company's ability to cover with the available resources all uses and how
resources are distributed for use:
DT – total liabilities
AT – total assets
DT
GÎ = * 100 (6)
AT
� Earnings per share (EPS) - reflects the profit for each owned share and is
calculated as the ratio between net profit and the weighted average of number
of common shares outstanding during that year. The dynamics of this indicator
presents to the investors a picture of the performance of the issuer:
Πnet
EPS = * 100 (7)
WNacţ
Пnet – net profit
WNacţ – balanced average of number of common shares outstanding during that year
� Diluted earnings per share (diluted EPS) - to determine this rate, the
corresponding net profits to common shareholders and the balanced average of
shares are adjusted with the influences of all dilutive potential common shares.
Dilutive potential common shares are considered to be converted into common
shares at the beginning of the period or at the issue date of the potential
common shares.
� Dividend rate (DR) - reflects the profits which returns to shareholders for each
share owned, and is calculated as the ratio of dividends paid to shareholders
and the balanced average of number of common shares during that year. The
dynamics of this rate shows the issuing company's management vision on the
dynamics of stock prices:
RD =
D – dividends paid to shareholders
D
* 100
WNacţ
� Return on assets (ROA) - one of the leading indicators of profitability of a
company from the point of view of profits made, which measures the
efficiency of asset utilization in order to obtain profit:
~ 349 ~
(8)
Πnet
ROA = * 100 (9)
AT
� Return on equity (ROE) - can be considered the most important indicator that
measures the performance of companies, because this actually shows the
contribution of the shareholders to finance the company:
Cpr – equity
ROE =
Πnet
* 100
Cpr
(10)