Financial Glossary

Definition of key financial indicators


Book Value per Share

Book Value per Share = Equity / Total number of shares as of Dec. 31


Cash flow

Net balance of incoming and outgoing payments during a reporting period. The cash flow provides information about the earning and financial power of a company.


Cost of Capital



DEBT I = Bank loans and overdrafts / Equity



Earnings before operating hedges

Earnings before operating hedging transactions comprise the operating result, including the result from realized operating hedges, adjusted for market value fluctuations of hedges that have not yet matured. Market value fluctuations of hedging transactions that have not yet matured are thus eliminated.

Earnings after operating hedges (EBIT - Earnings before interest and taxes)

EBITDA (Earnings before interest, taxes, depreciation and amortization)


Enterprise Value


Free Float

The number of shares not held by major shareholders owning more than 5% of the shares of a company (with the exception of shares held by investment companies and asset managers).


Greenhouse Gas (GHG) Protocol

The Greenhouse Gas Protocol is a tool for calculating and managing the greenhouse gas emissions of companies and organizations. It includes direct emissions from core corporate areas (Scope 1), indirect emissions from the use of purchased electricity, heat, and steam (Scope 2), and indirect emissions, which are upstream or downstream of corporate activities (Scope 3). To compare the global warming potential of different greenhouse gases, each greenhouse gas is converted in CO2 equivalents. A CO2 equivalent has the same global warming potential as one unit of CO2.

GRI - Global Reporting Initiative

Gross Cash Flow


Integrated Reporting

Integrated reporting is a standard concept that combines traditional financial reporting with non-financial reporting elements. The focus should be the company’s business model and its strategy. The aim is reporting which considers all the stakeholders’ interests. The goal is to reflect the interdependencies between environmental, social, governance, and financial factors of decisions, which influence a company’s long-term financial performance and position, by clarifying the connection between sustainability and economic values.


Net Financial Liabilitites

Financial liabilities - cash on hand and balances with banks - securities and other financial investments

Net Debt


OECD Guidelines for multinational companies

The OECD guidelines for multinational companies are government recommendations for the multinational companies that operate in or from the member states. They contain non-legally binding principles and benchmarks in the areas of basic obligations, information policy, human rights, employment policy, environmental protection, anti-corruption, consumer interests, science and technology, competition, and taxation.

Operating Assets

Operating forecast hedges



Rating agencies award ratings on a company’s ability to meet its future interest and repayment obligations in a timely manner in the form of standard categories.

Return on Capital Employed (ROCE)

Retrun on Equity

Return on Revenues

Return on Total Assets



Stakeholders are interest groups in the working environment or in an organization who are directly or indirectly affected by corporate activities, currently or in the future, and are thus in an interdependent relationship. They include employees, customers, investors, suppliers, local residents, and policymakers.


Transaction risk

A transaction risk is a currency risk that may arise in connection with existing receivables or liabilities in a foreign currency if a transaction in a foreign currency is to be converted to the Group currency, and thus represents a risk in terms of payment.

Translation risk


United Nations Global Compact

The United Nations Global Compact is a voluntary strategic initiative for companies designed to promote sustainable development and social commitment. The participating companies acknowledge the ten principles of the Global Compact in the areas of human rights, working standards, environmental protection, and anti-corruption.


Value Added

This key figure is based on the assumption that a company creates added value for the investor when the return on the average capital employed exceeds the underlying cost of capital. This excess return is multiplied by the average capital employed (annual average for operating assets and working capital) to give the company’s added value for the year under review.

Value Added = (ROCE - weighted average cost of capital before taxes) ×
(operating assets2  + working capital2, 4)


Working Capital

Working Capital = Inventories + accounts receivable trade + other assets5 -
current provisions - accounts payable trade – other payables5

1 Adjusted for the effects of market value changes of operating forecast hedges; for adjusted Group earnings,
the related effects on deferred and cash taxes are also eliminated.

2 Annual average.

Adjusted for reimbursement claims and corresponding obligations.

4 Adjusted by deferred tax influencing goodwill from initial consolidation.

5 Without the market value of operating forecast hedges still outstanding as well as derivatives no longer
in operation, but including premiums paid for derivatives used for operating purposes; without receivables
and liabilities from financial investments; adjusted for reimbursement claims as well as the surplus of the CTA plan assets.

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