BT 1998 Annual Report Download - page 81

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Financial ratios
Y E A R E N D E D 3 1 M A R C H
1994 1995 1996 1997 1998
))))))))%!!!0000000511
Earnings per share – pence 28.5 27.8 31.6 32.8 26.7
Growth in net dividends per share % (a) 7.1 6.0 5.6 6.1 6.4
Return on capital employed % (b) 17.1 15.6 18.3 18.9 19.3
Gearing – net debt to equity % (c) 9.3 17.8 7.4 1.6 36.1
Interest cover (d) 13.0 10.3 18.2 25.2 14.7
Dividend cover (a) (e) 1.7 1.6 1.7 1.7 1.8
000000005!!!0000000511
(a) 1997 and 1998 figures excluded the effects of the special dividend of 35p per share paid in September 1997.
(b) The ratio is based on profit before tax and interest on long-term borrowings, to average capital employed. Capital employed is
represented by total assets less current liabilities, excluding corporate taxes and dividends payable, and provisions other than
those for deferred taxation. Year-end figures are used in the computation of the average, except in the case of short-term
investments and borrowings where average daily balances are used in their place.
(c) The ratio is based on borrowings net of cash and short-term investments to capital and reserves and minority interests.
(d) The number of times net interest payable is covered by operating profit. In 1995 and 1997, net interest excludes the premiums
paid on the repurchase of bonds.
(e) The number of times dividends are covered by earnings. The figure for 1998 excludes the effect of the windfall tax charge.
Expenditure on research and development
Y E A R E N D E D 3 1 M A R C H
1994 1995 1996 1997 1998
£m £m £m £m £m
))))))))%!!!0000000511
Total expenditure 265 271 282 291 307
000000005!!!0000000511
Expenditure on tangible fixed assets
Y E A R E N D E D 3 1 M A R C H
Plant and equipment
Transmission equipment 896 1,060 1,114 1,131 1,219
Exchange equipment 493 605 566 445 512
Other network equipment 335 378 491 503 502
Computers and office equipment 219 343 333 350 372
Motor vehicles and other 153 214 195 175 230
Land and buildings 51 75 87 143 211
Increase (decrease) in engineering stores 24 (4) (15) (28) (16)
000000005!!!0000000511
Total expenditure on tangible fixed assets 2,171 2,671 2,771 2,719 3,030
Decrease (increase) in creditors (10) (33) (224) 104 (10)
000000005!!!0000000511
Cash outflow on purchase of tangible fixed assets 2,161 2,638 2,547 2,823 3,020
000000005!!!0000000511
Financial statistics