India’s Top PSUs 2019

10 Definitions & Calculations This section defines financial terms and ratios used in this publication. • Total Income - Refers to the total revenue including other income as reported in the company’s stand- alone financial statements. • Net Profit - Refers to the profit after tax as reported in the company’s standalone financial statements. • Net Worth - Is the sum of share capital, equity equivalents and reserves & surplus. Equity equivalents include share warrants, ESOP etc. Debit balance appearing in the profit and loss account and foreign exchange translation reserve account, revaluation reserves, miscellaneous expenditure, and intangibles such as patents, goodwill, trademarks, copyrights, know-how, brands, licenses, rights, computer software and the likes are deducted from the Net Worth. • Net depreciation as mentioned in profit & loss account. • Interest cost net of capitalisation wherever available Ratios Particulars Formulae EBITDA Profit Before Tax + Interest Expense + Depreciation and Amortisation Expense EBIT EBITDA – Depreciation and Amortisation Expense EBITDA Margin (%) (EBITDA/Total Income) * 100 Net Profit Margin (NPM) (%) (Net Profit/Total Income)* 100 Return on Net Worth (%) (Net Profit/Average Net Worth) * 100 Dividend Payout (%) Equity Dividend/(Profit Before Tax as per Annual Report- Taxation Expense- Pref- erence Dividend)*100 Capital Employed Long term debt + Net Worth Return on Capital Employed (%) (EBIT/Average Capital Employed) * 100 Return on Assets (PAT/Average Total Assets) * 100 Debt-to-Equity (times) (Total Debts) /Shareholder’s Fund Shareholder’s Fund Equity Share Capital + Preference Share Capital+ Reserves and Surplus – Accumu- lated Losses – Deferred expenses Total Debt Short Term Debt + Long Term Debt + Current maturities of Long Term Debt Total Assets Non-Current Assets + Current Assets (excluding accumulated losses and deferred expenses) Average Total Assets (Opening Total Assets + Closing Total Assets)/2 Average Net worth (Opening Net worth + Closing Net worth)/2 Average Capital Employed (Opening Capital Employed + Closing Capital Employed) / 2 Interest Coverage (times) EBIT/Interest Expense