India’s Top 500 Value Creators 2023

110 | India’s Top 500 Value Creators 2023 DEFINITIONS & CALCULATIONS This section defines financial terms and ratios used in this publication. ƒ Total Income – Refers to the total revenue including other income as reported in the company’s standalone financial statements. ƒ Net Profit – Refers to the profit after tax (from continuing operations) as reported in the company’s standalone financial statements. ƒ Net Worth – Refers to 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, and miscellaneous expenditure (to the extent not written off) are deducted from the Net Worth. ƒ Market Capitalization – Refers to the total market value of all outstanding shares of a publicly traded company. It is calculated by multiplying the current market price of a single share of the company’s stock by the total number of outstanding shares. ƒ Total Shareholder Return (TSR) – Refers to total return an investor earns from holding a company’s stock over a specific period, typically expressed as an annualized percentage. Total shareholder return (TSR) is calculated by adding the change in the stock price from the beginning to the end of the period to the total dividends paid out during that time, and then dividing by the initial stock price. Ratios Particulars Formulae EBITDA Profit Before Tax + Interest Expense (net of capitalisation) + 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/ Net Worth) * 100 Return on Assets (PAT/ Total Assets) * 100 Current Ratio Total Current Assets/Total Current Liabilities including provisions Debt-to-Equity (times) (Total Debts) /Shareholder’s Fund Shareholder’s Fund Equity Share Capital + Preference Share Capital+ Reserves and Surplus – Accumulated 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) Interest Coverage (times) EBIT/Interest Expense The publication also includes terms and indicators specific to the banking sector. Dun & Bradstreet