NWG // KEY FIGURES
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
CAPITAL EMPLOYED
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.
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 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).
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
Interest-bearing liabilities (current and non-current) less cash and
cash equivalents.
The measure shows financing from borrowings.
CAPITAL TURNOVER Rolling 12 month's net sales divided by average total assets. The measure shows how efficiently the Group uses its total
capital.
INVENTORY TURNOVER
Rolling 12 month's goods for resale in the income statement divided
by average inventory.
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.
NET DEBT TO
EQUITY RATIO
Net debt as a percentage of equity.
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 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.
33 // Q2