NWG // FINANCIAL INFORMATION
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 per share and determines if a company is increasing shareholder value over time .
CAPITAL MEASURES DEFINITION / CALCULATION PURPOSE EQUITY
The equity reported in the consolidated balance sheet consists of taxed equity increased by the equity portion of the Group ' s untaxed reserves and non-controlling interests . Deferred tax liability in untaxed reserves has been calculated at the applicable tax rates for the companies in each country , as decided and communicated at the balance sheet date .
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 .
CAPITAL EMPLOYED 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 .
The measure indicates how much capital is needed to run the business , regardless of type of financing ( borrowed or equity ).
WORKING CAPITAL
Total current assets , excluding liquid assets and current tax receivables , less short-term non-interest bearing liabilities excluding current tax liabilities .
The measure is used to show how much capital is needed to finance operating activities .
NET DEBT
NET DEBT TO CREDIT INSTITUTES
Interest-bearing liabilities ( current and non-current ) less cash and cash equivalents .
Interest-bearing liabilities ( current and non-current ) less lease liabilities and less cash and cash equivalents .
The measure shows financing from borrowings .
The measure shows financing from borrowings excluding lease liabilties
CAPITAL TURNOVER |
Rolling 12 month ' s net sales divided by average total assets . |
The measure shows how efficiently the Group uses its |
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total capital . |
INVENTORY TURNOVER
NET DEBT TO EQUITY RATIO
Rolling 12 month ' s goods for resale in the income statement divided by average inventory .
Net debt as a percentage of equity .
The measure is used to show the inventory ' s turnover per year , since the stock is central for the Group to keep a good service level , i . e . to be able to deliver goods fast .
The measure helps show financial risk and is useful for management to monitor the level of the 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 Group ' s ability to pay interest costs .
EQUITY RATIO |
Total equity as a percentage of total assets . |
The measure shows how much of the Group ' s assets are financed by the shareholders through equity . An equity ratio is a measure of financial strength and how the Group meets its profitability target . |
OTHER MEASURES DEFINITION / CALCULATION PURPOSE
EFFECTIVE TAX RATE |
Tax on profit for the period as a percentage of result before tax . |
This measure enables comparison of income tax |
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across locations where corporate taxes differ . |
EFFECTIVE INTEREST RATE |
Net financial items in relation to average net debt . |
The measure enables comparison of cost for the net |
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debt . |
CASH FLOW FROM OPERATIONS
NET INVESTMENTS
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 .
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 for investments in operations and for expansion .
ANNUAL REPORT // 125