profile: definitions

The definitions below should be read in conjunction with the accounting policies set out in the financial statements here.

Return on average shareholders’ equity
Profit attributable to ordinary shareholders as a percentage of average shareholders’ equity.

After-tax return on average capital employed
After-tax return for capital is the profit attributable to ordinary shareholders plus finance costs paid to providers of capital less the attributable tax on finance costs.

Capital employed is shareholders’ interest and interest-bearing debt.

The after-tax return on average capital employed is the after-tax return for capital as a percentage of the average capital employed for the year.

Before-tax return on average assets managed
The before-tax return on average assets managed is the profit before interest and tax as a percentage of the average total assets.

Gross margin
Gross profit as a percentage of merchandise sales.

Operating margin
Operating profit as a percentage of revenue.

Inventory turn
Cost of merchandise sales divided by the closing inventory.

Slow-paying accounts (receivables)
These are customers who, to date, have paid between 70% and 65% of the amount due to Lewis over the whole period of the contract.

Non-performing accounts (receivables)
These are customers who, to date, have paid less than 65% of the amount due to Lewis over the whole period of the contract.

Financing cover
Profit before finance costs and taxation divided by the finance costs.

Gearing ratio
Interest-bearing debt, reduced by cash and cash equivalents, divided by shareholders’ equity.

Current ratio
Current assets divided by current liabilities.

Earnings per share
Profit attributable to ordinary shareholders divided by the weighted average number of shares in issue.

Headline earnings per share
Headline earnings divided by the weighted average number of shares in issue.

Cash flow per share
Cash generated from operations divided by the weighted average shares in issue.

Net asset value per share
The net asset value divided by the number of shares in issue, after deducting treasury shares, at the end of the year.

Price-earnings ratio
The closing price on the JSE Limited on 31 March divided by the earnings per share.

Dividends per share
The dividends declared in respect of the financial year expressed as cents per share. Note that this will not correlate to the dividends reflected in the financial accounts since dividends for financial statement purposes are only recorded on payment.