Glossary

This section provides an explanation of terms used throughout this website, in particular, terms relating to the financial reports for Fletcher Building.

Capital expenditure
Expenditure on assets and investments

Capital notes
Long term, fixed rate, unsecured, subordinated notes

Cashflow from operations
Net cashflow from operating activities including interest and tax

Dividends
Return to shareholders on their shares

EBIT
Earnings before interest and tax, i.e. operating earnings

EBITDA
Earnings before interest, tax, depreciation, amortisations

EPS
Earnings per share - net earnings/weighted average number of shares

Funds employed
External net assets, excluding tax, of the business operations

Gearing
Debt + capital notes/debt + capital notes + total equity

Interest cover
EBITDA less minority share of EBITDA/funding costs

Margin
EBIT/Revenue

Market capitalisation
Number of shares on issue times closing share price i.e. the worth of the Group on the Stock Exchange

Net debt
Debt + short term loans less cash on hand

Net earnings
Earnings after taxation and minority interests

Operating revenue
Total revenue of the Group

Return on average equity
Net earnings/shareholders funds

Return on average funds
EBIT/(Average net debt + equity + capital notes) - deferred tax asset

Return on funds
EBIT/Funds

Total shareholders return
(Gross dividend paid + movement in share price)/opening share price

Unusual items
Items of operating earnings disclosed separately because of their nature or size