Employment costs
Includes the IFRS 2 Share-based Payment expense.
LSM
The South African Advertising Research Foundation (SAARF) Living Standards Measure (LSM) has become the most widely used segmentation tool in South Africa. It is a means of segmenting the South African market that cuts across race, gender, age or any other variable used to categorise people. Instead, it groups people according to their living standards.
Return on average shareholders’ equity (%)
Headline earnings
 
Average of opening and closing equity attributable to equity holders of the parent
Net finance costs
Interest received less interest paid.
Year
In line with most international retailers, Massmart runs its internal accounting and administrative timetable using the retail calendar which treats each financial year as an exact 52-week period.
Return on capital employed (%)
Operating profit before asset impairments
 
Average of opening and closing capital employed balances
The Group defines capital employed as the average of opening and closing equity attributable to equity holders of the parent and non-current interest-bearing liabilities.
EBITDA
Earnings before interest, taxation, depreciation, amortisation and asset impairments.
Sales per FTE
Sales
 
FTEs
Return on invested capital (%)
Adjusted operating profit
 
Average invested capital
Adjusted operating profit includes finance income and adds back depreciation, amortisation and occupancy costs. Average invested capital is average total assets of continuing operations plus average accumulated depreciation and amortisation less average accounts payable less average accrued liabilities plus occupancy costs x8.
EBITDAR
Earnings before interest, taxation, depreciation, amortisation, asset impairments and occupancy costs.
Sales per trading m2
Sales
 
Trading m2
Sales for Shield are excluded as they do not have stores.
Debt: Equity (%)
Average debt
 
Average total equity
Debt comprises non-current interest bearing liabilities.
Trading profit before interest and taxation
Earnings before interest, taxation, asset impairments, the BEE IFRS 2 charge, foreign exchange movements, loss on disposal of business and assets classified as held for sale.
Net asset turn
Sales
 
Net assets
The Group defines net assets as total equity and non-current interest-bearing liabilities.
Cash earnings cover
Operating cash flow per share
 
Headline earnings per share
Comparable sales
A store is considered comparable in its 13th month of trading and is removed from comparable sales from the first day of the month of closure.
Gross margin (%)
Gross profit
 
Sales
Net cash to total equity (%)
Cash and cash equivalents, net of borrowings
 
Total equity at the end of the financial year
FTE (full-time equivalents)
Includes all permanent employees and the permanent equivalent of temporary employees and contracted workers.
Operating margin (%)
Operating profit
 
Sales
Current ratio
Current assets
 
Current liabilities
Trading space (m2)
Trading space excludes parking, yard, warehouse space, office space and receiving areas.
Trading profit before interest and taxation margin (%)
Trading profit before interest and taxation
 
Sales
Quick ratio
Current assets excluding inventory
 
Current liabilities
Regional distribution centre space (m2)
Distribution centre space excludes parking and yard space.
EBITDA margin (%)
EBITDA
 
Sales
Sales per store
Sales
 
Number of stores
Sales for Shield are excluded as they do not have stores.
Effective tax rate (%)
Taxation
 
Profit before tax
DC
Distribution centre
Inventory days
Inventory
 
Total cost of sales multiplied by the number of days traded in the financial year
Headline earnings per share
Headline earnings
 
Weighted average number of shares in issue
Operating cash flow per share
Net cash flow from operating activities
 
Weighted average number of shares in issue
Net cash flow from operating activities, excludes dividends paid.
Inventory turn
Total cost of sales
 
Inventory
Diluted headline earnings per share
Headline earnings
 
Diluted weighted average number of shares in issue
Net asset value per share
Closing equity attributable to equity holders of the parent
 
Total number of shares in issue
Payable days
Trade payables excluding VAT
 
Total cost of sales multiplied by the number of days traded in the financial year
Attributable earnings per share
Earnings attributable to the equity holders of the parent
 
Weighted average number of shares in issue
Return on equity (%)
Headline earnings excluding foreign exchange
 
Average ordinary shareholders equity
Asset turn
Sales
 
Total assets
Dividends/distribution per share
Distribution to shareholders
 
Total number of shares in issue
Return on sales (%)
Operating profit before interest and tax excluding foreign exchange
 
Sales
Total liabilities to total equity
Current and non-current liabilities
 
Total equity
Cash generated from operations before working capital movements per share
Cash generated from operations before working capital movements
 
Weighted average number of shares in issue
Dividend cover
Headline earnings per share
 
Interim and final dividend per share