FINANCIAL SECTION 12 HARSCO CORPORATION 2003 ANNUAL REPORT GLOSSARY OF FINANCIAL  TERMS Economic Value Added (EVA ® ) Return on Sales Return on Average Equity  (ROE) Current Ratio Total Debt to Total Capital Return on Average Assets (RO A) Return on Capital (ROC) Gross Profit EVA is net operating profit after  tax minus an appr opriate charge for  the  opportunity  cost  of  all  capital invested. As such, EVA is an  estimate of true "economic" pr ofit, or  the  amount  by  which  ear nings  exceed or fall short of the required  minimum rate of r etur n that shar eholders  and  lenders  could  get  by  investing  in other securities of comparable  risk. Measures income in relation to  sales. Retur n on sales is  calculated  by  dividing  income  fr om  continuing operations by total revenues. Measures the rate of return on the equity held by common stock  shar eholders.  Retur n  on  average  equity  is calculated by dividing income from continuing operations by the quarterly  weighted  average  equity . Measures the short-term liquidity  of  the  Company  by  r eflecting  its  ability  to  meet  curr ent  obligations  fr om current assets. The current ratio  is  calculated  by  dividing  curr ent  assets  by  curr ent  liabilities. Measures the relative capital  contributions of debt and equity and  indicates  the  degr ee  of  leverage.  T otal debt to capital is calculated by  dividing total debt (short-term borr owings and  long-term  debt  including current maturities) by total capital (the sum of total debt  and  shar eholders'  equity). Measures how efficiently the  Company's total assets ar e being utilized.  Retur n  on  average  assets  is calculated by dividing income from continuing operations befor e inter est expense,  income  taxes  and minority interest by quarterly  weighted average assets (excluding assets of  discontinued  operations). Measures how effectively the  Company is using capital to pr oduce  ear nings.  Retur n  on  capital  is  calculated by dividing income from  continuing operations, excluding after -tax inter est expense  charges,  by  quarterly weighted average total debt and  equity . Measures the profitability of the  Company  by  calculating  total  r evenues  less  costs  and  expenses  associated directly with or allocated to pr oducts sold or services r ender ed.