Performance indicator used to gauge a company’s earnings per share, assuming that all stock options and conversion rights related to a convertible bond are exercised, which would result in an increase of the number of shares outstanding.
Diluted EPS = (net income + interest expense on convertible bonds net of tax) / (weighted average number of shares outstanding during the year + weighted share options + shares from assumed conversion of convertible bonds).
The Dow Jones Sustainability Index (DJSI) measures companies’ sustainability initiatives, focusing on how a company recognises the risks and opportunities arising from sustainability issues in its business strategy.
Earnings before interest, taxes, depreciation, amortisation and impairment losses as well as reversals of impairment losses for tangible and intangible assets.
Developing countries showing potential for growth in both economic strength and private wealth in the future. For the adidas Group, emerging markets are the developing countries of Asia, Eastern Europe, Latin America and Africa.
A business management system that integrates all facets of the business, including planning, manufacturing, sales and marketing.
Class of derivatives whose value is at least partly derived from one or more underlying equity securities. Options and futures are by far the most common equity derivatives, however there are many other types of equity derivatives that are actively traded.
Shows the role of shareholders’ equity within the overall financing structure of a company.
Equity ratio = (shareholders’ equity / total assets) × 100.
Defines the percentage of non-current assets financed by equity.
Equity-to-fixed-asset ratio = equity / non-current assets.
Retailer that primarily uses the internet as a medium for consumers to shop for the goods or services provided. E-tailers optimise the internet potential to attract, convert and retain consumers.
The Fair Factories Clearinghouse (FFC) was established in 2004 with the purpose of improving social, environmental and security standards and helping create humane working conditions for workers making consumer goods globally. Membership includes many sporting and consumer goods companies as well as a wide range of consumer goods suppliers see also www.fairfactories.org.
The Fair Labor Association (FLA), a non-profit labour rights organisation, is a multi-stakeholder initiative bringing together companies, colleges and universities, and civil society organisations to improve working conditions worldwide by promoting adherence to international and national labour laws see also www.fairlabor.org.
Amount at which assets are traded fairly between business parties. Fair value is often identical to market price.
Method of acquiring an asset that involves a lease with a special leasing company for a specific, non-terminable initial leasing term. The investment risk is borne by the lessee.
Ratio reflecting the role of borrowings within the financing structure of a company.
Financial leverage = (net borrowings / shareholders’ equity) × 100.
Agreement to exchange amounts of one currency for another currency at an agreed fixed rate at a future date.
Form of business by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers (franchisees). The franchisor offers assistance in organising, training, merchandising, marketing and managing in return for a monetary consideration.
Cash that is generated by a company’s operating activities after the deduction of capital expenditure and other cash expenses such as taxes and interest from the operating profit.
Free cash flow = operating profit + depreciation and amortisation (incl. goodwill) +/– changes in operating working capital – capital expenditure +/- non-operating components.
Mitbestimmungsgesetz (MitbestG). This act governs the form of co-determination of employees in corporations employing more than 2,000 employees. It stipulates, among other things, that such a corporation’s Supervisory Board must be composed of an equal number of employee and shareholder representatives.
Intangible asset that quantifies the price that a buyer of a company has paid for the reputation, know-how and market position of the acquired company. Goodwill is the excess of the amount paid over the fair value of the net assets acquired at the purchase date.
All instruments, tools and channels used to connect with consumers in order to best fulfil their needs.