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## GLOSSARY OF FINANCIAL TERMS 

## Economic Value Added (EVA ® ) 

EVA is net operating profit after tax minus an appr opriate charge for the opportunity cost of all capital invested. As such, EVA is an estimate of true "economic" pr ofit, or the amount by which ear nings exceed or fall short of the required minimum rate of r etur n that shar eholders and lenders could get by investing in other securities of comparable risk. 

## Return on Sales 

Measures income in relation to sales. Retur n on sales is calculated by dividing income fr om continuing operations by total revenues. 

## Return on Average Equity (ROE) 

Measures the rate of return on the equity held by common stock shar eholders. Retur n on average equity is calculated by dividing income from continuing operations by the quarterly weighted average equity . 

## Current Ratio 

Measures the short-term liquidity of the Company by r eflecting its ability to meet curr ent obligations fr om current assets. The current ratio is calculated by dividing curr ent assets by curr ent liabilities. 

## Total Debt to Total Capital 

Measures the relative capital contributions of debt and equity and indicates the degr ee of leverage. T otal debt to capital is calculated by dividing total debt (short-term borr owings and long-term debt including current maturities) by total capital (the sum of total debt and shar eholders' equity). 

## Return on Average Assets (RO A) 

Measures how efficiently the Company's total assets ar e being utilized. Retur n on average assets is calculated by dividing income from continuing operations befor e inter est expense, income taxes and minority interest by quarterly weighted average assets (excluding assets of discontinued operations). 

## Return on Capital (ROC) 

Measures how effectively the Company is using capital to pr oduce ear nings. Retur n on capital is calculated by dividing income from continuing operations, excluding after -tax inter est expense charges, by quarterly weighted average total debt and equity . 

## Gross Profit 

Measures the profitability of the Company by calculating total r evenues less costs and expenses associated directly with or allocated to pr oducts sold or services r ender ed. 

