Glossary - R

Receivables management

The term receivables management (credit management) includes all measures involved in processing, securing and balancing accounts receivable.

Reforming catalyst

Catalyst used to produce synthesis gas from hydrocarbons, including natural gas.

Return

Return per year, expressed as a percentage of invested capital.

Return on Invested Capital

> ROIC

Rheology

Describes the flow properties of any substance.

Risk diversification

Broad diversification of potential corporate risks.

Reserves

Amount allocated to a company´s balance sheet as an anticipated expense which has been or will be incurred during the relevant accounting period (financial year), but does not lead to any payment during such period.

ROIC (Return on Invested Capital)

The ROIC reflects the yield accruing from the capital invested. The basis for calculating the ROIC is the operating profit divided by the capital invested. Whereas the numerator, namely the operating profit, can be taken directly from the income statement, the denominator, namely the capital invested, is made up of property, plant and equipment, as well as intangible assets and working capital, less the sum total of tax provisions, other earnings reserves and other liabilities. In this case, working capital comprises the sum total of cash and cash equivalents, trade accounts receivable and inventories, less total trade accounts payable and liabilities to other group companies.