EBITDA
Earnings before interest, taxes, depreciation and amortization.
Effective Tax Rate
Indicates the actual tax rate paid by a company. Calculated by dividing taxes actually paid by income before taxes.
Emerging Markets
Economies that are small, but that have the potential for growth in size and importance in coming years. For the adidas Group, emerging markets are the developing countries of Asia, Eastern Europe, Latin America and Africa.
Equity Ratio
Shows the role of shareholders’ equity within the financing structure of a company.
Equity ratio = shareholder’s equity / total assets.
Equity-To-Fixed-Asset Ratio
Defines the percentage of non-current assets financed by equity.
Equity-to-fixed-asset ratio = equity / non-current assets.
Fair Factory Clearinghouse (FFC)
A collaborative industry effort involving international manufacturers to create a system for managing and sharing workplace condition information. Its objectives are to improve the factory’s social compliance audits through use of a global data management system, to facilitate exchange of information and advance and promote education and knowledge about the current status of workplace conditions.
Fair Value
Amount at which assets are traded fairly between business partners. Fair value is often identical to market price.
Family Footwear Channel
This North American retail distribution channel caters for affordable footwear across all age groups.
Finance Lease
A method of acquiring an asset that involves a series of rental payments extending over the expected lifetime of the asset.
Financial Leverage
This ratio reflects the role of borrowings within the financing structure of a company.
Financial leverage = net total borrowings / shareholders’ equity.
ForMotion™
Apparel and footwear technology that enhances the natural movement of sport for greater comfort, fit and control while athletes are in motion.
