CAPITAL MEASURES DEFINITION/CALCULATION PURPOSE
EQUITY The equity reported in the consolidated balance
sheet consists of taxed equity increased by the equity
portion of the Group's untaxed reserves and noncon-
trolling interests. Deferred tax liability in untaxed
reserves has been calculated at a 22.0 % rate for
Swedish companies and at the applicable tax rate for
foreign companies in each country outside Sweden. 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.
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, less
shortterm non-interest bearing liabilities. The measure is used to show how much capital is
needed to finance day to day operations.
NET DEBT Interest-bearing debt (current and non-current) less
cash and cash equivalents. The measure shows financing from borrowings.
STOCK TURNOVER Goods for resale in the income statement divided by
average stock. The measure is used to show the inventory's turnover
per year.
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 company's
indebtedness.
NET DEBT IN RELATION TO
WORKING CAPITAL Net debt divided by working capital. The measure is used to show how much of the working
capital is financed through net debt.
INTEREST COVERAGE RATIO Result before tax plus financial costs divided by
financial costs. The measure is used to calculate the company's ability
to pay interest costs.
EQUITY RATIO Equity as a percentage of total assets. The measure shows how much of the company's assets
are financed by the shareholders through equity.
An equity ratio is a measure of financial strenght.
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
backing up each share of the company's equity and
determines if a company is increasing shareholder
value over time.
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.
CASH FLOW FROM
OPERATIONS Cash flow from operating activities including
changes in working capital and before cash flows
from investing and financing activities. The measure is used to show the cash flow generated
by the company's operations.
NET INVESTMENTS Cash flow from investing activities according to
the cash flow analysis which includes investments
and divestments of buildings, acquisitions, invest-
ments in tangible and intangible assets and raised
long-term debt. The measure is used to regularly estimate how much
cash is used to maintain operations and for expansion.
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