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
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.
CAPITAL TURNOVER Rolling 12 month’ s net sales divided by average total assets. The average total assets is calculated by taking the total assets per period end and the total assets at year-end for the previous year divided by two.
The measure shows financing from borrowings.
The measure shows financing from borrowings excluding lease liabilties
The measure shows how efficiently the Group uses its total capital.
INVENTORY TURNOVER
NET DEBT TO EQUITY RATIO
Rolling 12 month’ s goods for resale in the income statement divided by average inventory. The average inventory is calculated by taking the inventory per period end and the inventory at the same period for the previous year divided by two.
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 targets. |
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 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 BEFORE INVESTMENTS
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 // 147