Financial definitions


Average number of shares
A weighted average number of outstanding shares for the year.

Cash generation
Cash flow from operating activities divided by year's profit/loss for continuing operations adjusted for items that do not affect cash flow.

Debt/equity ratio
Interest-bearing liabilities as a percentage of equity.

Diluted average number of shares
A weighted average of outstanding shares and potential shares.

Diluted cash flow per share
Cash flow from operating activities divided by the average number of shares after dilution.

Diluted earnings per share
Year's profit/loss divided by the average number of shares after dilution.

EBIT
Earnings before interest and taxes, operating profit/loss.

EBITDA
Earnings before interest, taxes, depreciation, and amortisation.

Equity/assets ratio
Equity as a percentage of the balance sheet total.

Interest coverage ratio
Operating profit/loss plus financial income divided by financial costs.

Net debt
Interest-bearing liabilities minus cash and cash equivalents divided by equity.

Net margin
Profit/loss before taxes as a percentage of sales.

Operating margin
Operating profit/loss as a percentage of sales.

Return on capital employed
Operating profit/loss plus financial income as a percentage of average capital employed.¹

Return on equity
Year's profit/loss expressed as a percentage of average equity.¹

Return on total capital
Operating profit/loss plus financial income as a percentage of average balance sheet total.¹

Value added per employee
Operating profit/loss plus labour costs divided by the average number of employees. Labour costs are salary expenses plus a standard 35 percent for social security contributions.

¹ The OB+CB/2 method is applied when calculating an average value for the key figures abo