Definitions
Acquired growth in net sales
Change in net sales as a percentage of net sales during the comparable period, fuelled by acquisitions. Acquired net sales is defined as net sales during the period that are attributable to companies that were acquired during the last 12-month period and for these companies, the only amounts that are considered as acquired net sales are their sales up until 12 months after the acquisition date.
Purpose
Acquired net sales growth reflects the acquired units’ impact on net sales.
Cash conversion
Operating cash flow, 12-months rolling, as a percentage of EBITDA, 12-months rolling. A change in the calculation of cash conversion occurred in Q4 2022 and prior periods have been restated.
Purpose
Cash conversion is used to monitor how effective the Group is in managing ongoing investments and working capital.
Change in exchange rates
The period’s change in net sales that is attributable to the change in exchange rates (start of the period compared to the end of the period), as a percentage of net sales during the comparison period.
Purpose
The change in exchange rates reflects the impact that exchange rate fluctuations has had on net sales during the period.
EBIT margin
Earnings before interest and taxes, as a percentage of net sales.
Purpose
EBIT margin is used to measure operational profitability.
EBITA
Operating profit/loss (EBIT) before depreciation/amortization and impairment of acquired intangible assets.
Purpose
EBITA provides an overall picture of the profit generated from operating activities.
EBITA margin
Operating profit/loss (EBIT) before depreciation/amortisation and impairment of acquired intangible assets, as a percentage of net sales.
Purpose
EBIT margin is used to measure operational profitability.
EBITDA
Operating profit/loss (EBIT) before depreciation/amortisation and impairment of acquired intangible assets and depreciation/amortisation and impairment of property, plant and equipment and intangible assets.
Purpose
EBITDA, together with EBITA provides an overall picture of the profit generated from operating activities.
EBITDA margin
Operating profit/loss (EBIT) before depreciation/amortisation and impairment of acquired intangible assets and depreciation/amortisation and impairment of property, plant and equipment and intangible assets, as a percentage of net sales.
Purpose
EBITDA margin is used to measure operational profitability.
Equity ratio
Equity including non-controlling interests, expressed as a percentage of total assets.
Purpose
Equity ratio is used to show the proportion of assets that are financed by equity.
Items affecting comparability
Non-recurring items, such as restructuring costs and costs related to action programs.
Purpose
The exclusion of items affecting comparability increases the comparability of results between periods.
Net debt/equity ratio
Interest-bearing net debt as a percentage of total equity.
Purpose
Net debt in relation to EBITDA provides an estimate of the company’s ability to reduce its debt. It represents the number of years it would take to pay back the debt if the net debt and EBITDA are kept constant, without taking into account the cash flows relating to interest, taxes and investments.
Net sales growth
Change in net sales as a percentage of net sales in the comparable period, prior year.
Purpose
The change in net sales reflects the Groups realised sales growth over time.
Net interest-bearing debt
Non-current and current interest-bearing liabilities less cash and cash equivalents and other short-term investments.
Purpose
Net interest-bearing debt is used as a measure of the Group’s total debt.
Net interest-bearing debt in relation to EBITDA
Net interest-bearing debt at end of period divided by EBITDA, on a rolling 12-month basis.
Purpose
Net debt in relation to EBITDA provides an estimate of the company’s ability to reduce its debt. It represents the number of years it would take to pay back the debt if the net debt and EBITDA are kept constant, without taking into account the cash flows relating to interest, taxes and investments.
Operating cash flow
EBITDA less investments in property, plant and equipment and intangible assets, along with an adjustment for cash flow from change in working capital.
Purpose
Operating cash flow is used to monitor the cash flow generated from operating activities.
Operating profit/loss (EBIT)
Earnings before interest and taxes.
Purpose
Operating profit/loss (EBIT) provides an overall picture of the profit generated from operating activities.
Order backlog
The value of outstanding, not yet accrued project revenue from received orders.
Purpose
Order backlog provides an indication of the Group’s remaining project revenue from orders already received.
Organic growth adjusted for currency effects
The change in net sales for comparable units after adjustment for acquisition and currency effects, as a percentage of net sales during the comparison period.
Purpose
Organic growth in net sales does not include the effects of changes in the Group’s structure and exchange rates, which enables a comparison of net sales over time.
Return on capital employed
Operating profit/loss (EBIT) plus financial income divided by capital employed (total assets less interest-free liabilities). The components are calculated as the average over the last 12 months.
Purpose
The purpose is to analyse profitability in relation to capital employed.
Return on equity before tax
Earnings before taxes divided by adjusted equity.
Purpose
Return on equity before tax is used to create an efficient organisation and rational capital structure. It also shows the return provided by the Group on shareholders’ capital.
Return on equity
Earnings for the period on a rolling 12-month basis divided by average total equity at the end of the period.
Purpose
Return on equity is used to analyse profitability, based on how much equity is used.
Working capital
Inventories, accounts receivable, earned but not yet invoiced income, prepaid expenses and accrued income and other current assets, less accounts payable, invoiced but not yet earned income, accrued expenses and deferred income and other current liabilities.
Purpose
Working capital is used to measure the company’s ability to meet short-term capital requirements.
Working capital as a percentage of net sales
Working capital at the end of the period as a percentage of net sales on a 12-month rolling basis.
Purpose
Working capital as a percentage of net sales is used to measure the extent to which working capital is tied up.
