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Alternative performance measures

∆%

Change in percentage.

Capital employed

Balance sheet total with a deduction for non-interest-bearing liabilities and deferred tax liability. The key figure is relevant to show the capital in the Group that is financed by interest-bearing capital.

Debt/equity ratio

Net debt in relation to equity. The objective is to show borrowing in relation to book value of equity.

EBITA

Operating profit before interest, taxes and amortisation of intangible fixed assets. The objective of reporting EBITA is that the Group regards it as a relevant measure for an investor who wants to understand the generation of earnings before investments intangible fixed assets.

EBITA excluding items affecting comparability

Operating profit excluding items affecting comparability and before amortisation and write-downs on intangible fixed assets. The purpose of reporting EBITA excluding items affecting comparability is that the group considers it a relevant measure for an investor who wants to understand the generation of earnings from the underlying operating activities before investments in intangible fixed assets.

EBITA margin, %

EBITA excluding items affecting comparability in relation to net sales.

EBITDA

Earnings before interest, taxes, depreciation and amortisation of tangible and intangible fixed assets. The objective of reporting EBITDA is that the Group regards it as a relevant measure for an investor who wants to understand the generation of earnings before investments in fixed assets.

EBITDA excluding items affecting comparability

Earnings excluding items affecting comparability before interest, taxes, depreciation and amortisation of tangible and intangible fixed assets. The objective of reporting EBITDA excluding items affecting comparability is that the Group regards it as a relevant measure for an investor who wants to understand the generation of earnings from the underlying operating activities before investments in fixed assets.

Equity before/after dilution

Equity before/after dilution in relation to average number of outstanding shares.

Equity ratio

Equity at the end of the period in relation to balance sheet total.

Interest-bearing liabilities

Interest-bearing liabilities to credit institutions, liabilities related to right-of-use assets and pension liability.

Interest coverage ratio

Earnings before tax plus financial expenses in relation to financial expenses. The objective of this measure is to show the proportion of earnings allocated to paying interest expenses and other financial expenses.

Items affecting comparability

Major non-recurring items. Provides an increased understanding of the Group’s underlying operating results.

Net debt

Interest-bearing liabilities reduced by liquid funds and interest-bearing current investments. We are of the opinion that the net debt is useful for the users of the financial report as a complement for assessing the possibility for a dividend, for carrying out strategic investments and for assessing the Group’s possibilities for living up to financial commitments.

Net debt/EBITDA

Net debt in relation to EBITDA for previous 12 month period. A measure of financial risk that puts interest-bearing debt in relation to cash generation.

Net debt/EBITDA excluding items affecting comparability

Net debt in relation to EBITDA excluding items affecting comparability for previous 12 month period. A measure of financial risk that puts interest-bearing debt in relation to underlying cash generation.

Operating capital

Capital employed minus liquid funds, financial assets and other interest-bearing assets.

Operating cash flow

Cash flow from operating activities adjusted with interest paid, income tax paid and charged with investments in fixed assets. The performance measure excludes cash flow from items affecting comparability. The alternative key figure is relevant to give an indication of the funds that the underlying operating activities generate to be able to carry out strategic investments, make amortisations and provide a return to the shareholders.

Operating margin, %

Operating profit excluding items affecting comparability in relation to net sales.

Operating profit (EBIT)

Profit before net financial items and tax. The key figure is relevant for an investor who wants to understand the generation of earnings before net financial items and tax.

Operating profit excluding items affecting comparability (EBIT)

Operating profit excluding items affecting comparability. The key figure is relevant for an investor who wants to understand the profit generation from the underlying operating activities before net financial items and tax.

Organic change

Comparative figures year over year adjusted for translation effects on consolidation and changes in the structure.

Profit per share before/after dilution

Net profit in relation to average number of shares before/after dilution.

Profit per share excluding items affecting comparability before/after dilution

Net profit in relation to average number of shares excluding items affecting comparability before/after dilution.

R12

Rolling twelve is the latest 12 months.

Return on equity

Profit after tax for previous 12 month period as a percentage of average equity. The purpose of return on equity and other return measures is to set the result in relation to important balance sheet items.

Return on operating capital

Operating profit excluding items affecting comparability for previous 12 month period as a percentage of average operating capital.

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