CAPITAL MEASURES DEFINITION / CALCULATION PURPOSE EQUITY
CAPITAL EMPLOYED
WORKING CAPITAL
NET DEBT
STOCK TURNOVER
The equity reported in the consolidated balance sheet consists of taxed equity increased by the equity portion of the Group ' s untaxed reserves and noncontrolling interests . Deferred tax liability in untaxed reserves has been calculated at a 22.0 % rate for Swedish companies and at the applicable tax rate for foreign companies in each country outside Sweden .
Total assets less provisions and non-interest bearing liabilities , which consist of accounts payable , current tax liabilities , other liabilities and accrued expenses and prepaid income .
Total current assets , excluding liquid assets , less shortterm non-interest bearing liabilities .
Interest-bearing debt ( current and non-current ) less cash and cash equivalents .
Goods for resale in the income statement divided by average stock .
The measure is the difference between the Group ' s assets and liabilities , which corresponds to the Group ' s equity contributed by owners and the Group ' s accumulated profits .
The measure indicates how much capital is needed to run the business , regardless of type of financing ( borrowed or equity ).
The measure is used to show how much capital is needed to finance day to day operations .
The measure shows financing from borrowings .
The measure is used to show the inventory ' s turnover per year .
NET DEBT TO EQUITY RATIO |
Net debt as a percentage of equity . |
The measure helps show financial risk and is useful for |
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management to monitor the level of the company ' s |
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indebtedness . |
NET DEBT IN RELATION TO WORKING CAPITAL
INTEREST COVERAGE RATIO
Net debt divided by working capital .
Result before tax plus financial costs divided by financial costs .
The measure is used to show how much of the working capital is financed through net debt .
The measure is used to calculate the company ' s ability to pay interest costs .
EQUITY RATIO |
Equity as a percentage of total assets . |
The measure shows how much of the company ' s assets |
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are financed by the shareholders through equity . |
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An equity ratio is a measure of financial strenght . |
DATA PER SHARE DEFINITION / CALCULATION PURPOSE EQUITY PER SHARE
Equity at the end of the period divided by number of shares at the end of the period .
Equity per share measures the net asset value backing up each share of the company ' s equity and determines if a company is increasing shareholder value over time .
OTHER MEASURES DEFINITION / CALCULATION PURPOSE
EFFECTIVE TAX RATE
CASH FLOW FROM OPERATIONS
NET INVESTMENTS
Tax on profit for the period as a percentage of result before tax .
Cash flow from operating activities including changes in working capital and before cash flows from investing and financing activities .
Cash flow from investing activities according to the cash flow analysis which includes investments and divestments of buildings , acquisitions , investments in tangible and intangible assets and raised long-term debt .
This measure enables comparison of income tax across locations where corporate taxes differ .
The measure is used to show the cash flow generated by the company ' s operations .
The measure is used to regularly estimate how much cash is used to maintain operations and for expansion .
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