Key ratio definitions

Capital indicators

Net assets - Total assets exclusive of liquid funds and interest-bearing financial receivables less operating liabilities, non-interest-bearing provisions and deferred tax liabilities.

Operating working capital - Inventories and trade receivables less trade payables.

Working capital - Current assets exclusive of liquid funds and interest-bearing financial receivables less operating liabilities and non-interest-bearing provisions.

Net debt - Total interest-bearing liabilities less liquid funds.

Liquid funds - Cash and cash equivalents, short term investments and fair value derivative assets.

Net debt/equity ratio - Net debt in relation to total adjusted equity.

Equity/assets ratio - Equity as a percentage of total assets.

Capital employed - Total liabilities and equity less non-interest-bearing debt including deferred tax liabilities.

Other key ratios

Earnings per share - Income for the period divided by the number of shares.

Net sales growth - Net sales as a percentage of the preceding period.

Gross margin - Gross operating income as a percentage of net sales.

Operating margin - Operating income as a percentage of net sales.

Return on equity - Income for the period as a percentage of average equity.

Return on capital employed - Operating income plus financial income as a percentage of average capital employed.

Operating cash flow - Total cash flow from operations and investments, excluding acquisitions and divestment of operations.

Capital expenditure - Property, plant and equipment and capitalization of product development and software.

EBITDA - Earnings before interests, taxes, depreciation and amortization.

Value creation - Operating income less the weighted average cost of capital (WACC) on average net assets: (Net sales - operating costs = operating income) - (WACC x average net assets).

Excluding acquisitions - Figures excluding acquisitions are reported in order to make the current period comparable with the corresponding period in the previous year. Adjustment is made for acquisitions with annual sales of SEK 100m or more.

Interest coverage ratio - Income after financial items plus financial costs divided with financial costs.