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Véronique Gillet
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work Essilor International 147 rue de Paris 94220 Charenton-le-Pont (France)
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financial glossary
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Click a letter to see the definition of a financial or stock market term.
The ASPI Eurozone® is an international stock index composed of the 120 eurozone companies with the best sustainable development ratings.
Created by France’s Financial Security Act of August 1, 2003, AMF results from the merger of Commission des Opérations de Bourse (COB), Conseil des Marchés Financiers (CMF) and Conseil de Discipline de la Gestion Financière. AMF is a public body tasked with reviewing the information disclosed by listed companies and all entities that offer securities to the public. It oversees the efficient operation of the financial markets. It plays a role in protecting investors and can impose sanctions or penalties for breaches of France’s securities laws.
Book value is the amount at which an item is recorded in the company’s accounts. See also market value.
The CAC 40 is an index of stocks traded on the NYSE-Euronext Paris stock exchange. It is calculated every thirty seconds based on a basket of forty stocks selected from among the 100 largest NYSE-Euronext Paris stocks, based on their market capitalization and liquidity.
Cash flow is the net cash provided by manufacturing activities. It corresponds to profit for the period before the Company’s share of the profit of associates plus dividends received from associates, plus depreciation, amortization and other non-cash items (including share-based payments).
A cash flow is an inward or outward movement of cash. A company’s cash flows include cash flows from: Operating activities Investing activities Financing activities They are presented in the cash flow statement.
Indicator used by Essilor since the transition to IFRS in 2005 to report operating profit before certain non-recurring items. It corresponds to operating profit before share-based payments, restructuring costs and other non-recurring items, and goodwill impairment. Contribution from operations is similar to operating profit under French accounting standards as disclosed prior to 2005.
Contribution margin corresponds to contribution from operations expressed as a percentage of revenue.
Dividends are a portion of a company’s earnings paid to owners of shares in the company. The dividend income, which varies depending on the number of shares held, is in addition to any capital gain realized by the shareholder when the shares are sold.
The Dow Jones Sustainability Index (DJSI) (link to an external site), which is based on a cooperation between Dow Jones Indexes, Stoxx Limited and Swiss Asset Management Group, is an international index of companies with the highest sustainable development ratings.
Equity represents a major component of the balance sheet, along with such items as debt, fixed assets and receivables. Equity is recorded on the liabilities side of the balance sheet and corresponds to the funds received from shareholders – when the company is formed or subsequently – and to retained earnings (i.e. profits that are not distributed as dividends). Equity corresponds to the portion of the company’s net assets attributable to shareholders, after repaying all of the company’s creditors. Equity is carried in the balance sheet at book value. See also market capitalization.
NYSE-Euronext is a global stock exchange created on April 4, 2007 through the merger of the New York Stock Exchange and Euronext NV, which combines the Amsterdam, Brussels, Lisbon and Paris stock exchanges and the UK-based LIFFE derivatives market. Like all stock exchanges, NYSE-Euronext has created its own indices of which there are currently four for European stocks.
Euronext 100 is an index of the top 100 market capitalizations of NYSE Euronext.
An employee shareholding index launched by Fédération Française des Associations d’Actionnaires Salariés et d’Anciens Salariés (FAS) and NYSE-Euronext comprising all the SBF 250 stocks with a significant employee shareholder base, meaning companies in which employees representing more than one-quarter of the total workforce own at least 3% of the share capital.
The free float is the number, percentage or value of a company’s shares available for purchase by the public and traded on a stock exchange.
Published by FTSE, which is owned by the Financial Times and the London Stock Exchange, FTSE4Good is an international index of stocks with the best sustainable development ratings.
Gearing is the ratio of net debt to equity.
A stock index is a value calculated by combining the share prices of several companies, which serves to represent a stock market or a segment of a stock market.
The IASB is a private body founded in 1973 by nine countries’ accounting standard-setters with the primary aim of drafting a set of accounting standards that would be accepted internationally, promoting their use and generally working on aligning accounting practices and presentation internationally. It has 14 independent members.
International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) published by the International Accounting Standards Board (IASB). All companies listed in the European Union have been required to prepare their financial statements according to IFRS since 2005.
The ISIN code (link to an external website) (International Securities Identification Number) is an internationally recognized code used by many financial markets, including NYSE-Euronext, to identify listed securities. Essilor’s ISIN code is FR 0000121667.
Liquidity is a measure of the ease with which a security can be bought and sold on a financial market. There are several definitions. It can be defined as the ratio between trading volume (expressed as a currency amount) over a given period and the company’s free float or total market capitalization. NYSE-Euronext defines liquidity as the average daily trading volume over the past twelve months.
Market capitalization corresponds to the market value of a company’s equity, i.e. the market value of the company’s net assets attributable to equity holders. It is calculated by multiplying the company’s share price by the number of shares outstanding.
Market value is the value at which an item can be bought or sold, generally on the financial market, at a market price as determined by supply and demand. See also book value.
An OCEANE is a bond that is convertible into or exchangeable for a new or existing share. Conversion gives rise to the delivery of newly issued shares, leading to a capital increase, and exchange gives rise to the delivery of existing shares. The decision to deliver new or existing shares is made by the issuer. OCEANEs are different from convertible bonds in that they can be exchanged for existing shares and the conversion or exchange period is also different.
Operating profit corresponds to the additional wealth created by the company’s manufacturing and sales activities. Operating profit under IFRS corresponds to the contribution from operations, plus share-based payments and certain non-recurring costs (restructuring, asset impairments, goodwill impairment, etc.). The approximate equivalent in the accounts under French accounting standards was the sum of operating profit and non-recurring items.
The par value of a share corresponds to the company’s share capital divided by the number of shares outstanding. It is an accounting concept (link to the definition of book value) and differs from market value which, in the case of a share, corresponds to the share price.
The P/E is the ratio between the share price and earnings per share. It expresses the share price as a multiple of earnings.
Revenue corresponds to the proceeds from the sale of finished products. Revenue growth stems from organic growth (i.e. the increase in revenue based on constant exchange rates and a comparable scope of consolidation), the effect of changes in exchange rates and the effect of changes in the scope of consolidation (for example, due to acquisitions).
ROA (Return On Assets) corresponds to profit before tax plus finance costs divided by economic assets (representing the sum of non-current assets and working capital requirement).
ROE (Return On Equity) corresponds to net profit divided by equity.
A share is a transferable security representing a portion of a company’s equity.
Price at which a share is traded on a stock market (market value) The share price fluctuates daily based on supply and demand.
The yield is the ratio between the dividend per share and the share price.