123
Financial definitions
Capital turnover rate
Net sales divided by average operating capital.
Cash and cash equivalents
Cash and bank balances plus short-term investments
with a maturity of less than three months.
Direct yield
Dividend per share as a percentage of the share price.
Dividend pay-out ratio
Dividend per share as a percentage of earnings per
share.
Earnings per share
Profit/loss for the year divided by the average number of
shares on the balance sheet date.
Equity/assets ratio
Equity including non-controlling interests as a
percentage of balance sheet total.
Equity per share
Equity divided by average number of shares at the
balance sheet date.
Gross contribution
Operating income minus cost of goods.
Interest coverage ratio
Operating profit/loss plus financial income divided by
financial expenses.
Net borrowings
The total of interest-bearing liabilities minus
interest-bearing assets.
Net debt/equity ratio
Net borrowings divided by equity including
non-controlling interests.
Operating capital
Total assets minus cash and cash equivalents,
interest-bearing receivables and non-interest-bearing
operating liabilities, but excluding deferred tax.
Organic volume growth
Total volume growth, excluding effects of acquisitions/
disposals.
P/E ratio
Share price divided by earnings per share.
Proportion of risk-bearing capital
Equity, non-controlling share of equity and deferred tax
liability divided by balance sheet total.
Return on operating capital
Operating profit divided by average operating capital.
Return on shareholders’ equity
Profit/loss for the year as a percentage of average
shareholders’ equity.
Share price/Equity
Share price divided by equity per share.
Working capital
Non-interest-bearing current assets minus non-
interest-bearing liabilities excluding deferred tax.