Margins
Gross margin
Net sales less cost of goods sold as a percentage of net sales.
Operating profit margin (EBIT margin)
Operating profit expressed as a percentage of net sales.
Operating profit margin, adjusted
Operating profit, adjusted for items affecting comparability, as a percentage of net sales.
Profit margin
Profit/loss before tax expressed as a percentage of net sales.
Return
Cash conversion
Operating profit, adjusted for items affecting comparability, before depreciation and amortization less capital expenditures as a percentage of operating profit, adjusted for items affecting comparability, before depreciation and amortisation.
Return on capital employed
Operating profit plus financial income as a percentage of average capital employed.
Return on equity
Profit for the period as a percentage of total equity.
Capital structure
Capital employed
Total assets less interest-free liabilities (including deferred tax).
Equity/assets ratio
Equity at the end of the period as a percentage of total assets. The equity/assets ratio represents the amount of assets on which shareholders have a residual claim.
Gross debt
Gross current and non-current borrowings, including credit overdraft facilities, derivative financial instruments and interest payables.
Net debt
Gross debt less cash and cash equivalents.
Net debt/EBITDA
Net debt at the end of the period divided by the EBITDA, adjusted, for the last 12 months, taking into consideration the annualisation of EBITDA for acquired or divested companies.
Net debt/equity ratio
Net debt at the end of the period divided by equity at the end of the period.
Working capital
Total inventories and trade and other receivables adjusted for trade and other payables.
Data per share
Cash flow from operating activities per share
Cash flow from operating activities in the period divided by the average number of shares.
Earnings per share
Profit for the period divided by the average number of shares adjusted for the effect of forward contracts to repurchase own shares.
Equity per share
Equity at the end of the period divided by number of shares at the end of the period.
Other definitions
EBIT
Operating profit consists of comprehensive income before net financial items and income tax.
EBIT, adjusted
Operating profit adjusted for items affecting comparability.
EBITDA
Operating profit before depreciation and amortisation.
Effective tax rate
Income tax as a percentage of profit before tax.
Items affecting comparability
Items affecting comparability are those significant items which are separately disclosed by virtue of their size or incidence in order to enable a full understanding of the Group’s financial performance such as restructurings, impact from acquisitions or divestments.
Net financial items
The total of exchange differences on borrowings and cash and cash equivalents in foreign currencies, other financial income and other financial expenses.
Net sales, change
Net sales as a percentage of net sales in the comparative period of the previous year.
Organic growth
Net sales, change excluding acquisition-driven growth and changes in exchanges rates.
Structural changes
Net sales, change resulting from changes in group structure.