Definitions

DefinitionsDefinitions

Here you'll find definitions divided in branch specific key ratios and financial key ratios.


Definition of branch specific key ratios

Gross margin: Net sales minus goods for resale, divided by net sales

Comparable stores: A comparable unit (like-for-like unit) is regarded as comparable from the second year-end after the store has opened. This means that a store that opened in 2015 is classified as a comparable unit from 2017. Stores relocated to new premises in an existing location are treated in the same manner.

Net sales for comparable stores: Net sales for stores that are comparable

Definitions of financial key ratios

EBITDA: EBIT from continuing operations excluding depreciation/amortization and impairment of tangible and intangible fixed assets.

EBITDA excluding non-recurring items: EBITDA excluding non-recurring items is a metric deemed relevant by the Group for investors seeking to understand earnings from operating activities excluding the impact from non-recurring items.

Non-recurring items: The Group defines non-recurring items in the report as acquisition costs, earnouts, restructuring owing to changes in Skånska Byggvaror strategy and discontinuation expenses pertaining to four stores in Finland. These items are not included in ordinary operations and the amounts are of significant size and thereby impact earnings and key performance indicators

EBITDA margin: EBITDA divided by net sales

EBITA: EBIT after depreciation/amortization of tangible and intangible assets and impairment but before decuction for impairment of goodwill.

EBIT: Earnings before interest and taxes.

Operating margin (EBIT margin): EBIT (operating profit) divided by net sales.

Earnings per share: Profit after tax divided by the average number of shares outstanding at the end of the period.

Interest-coverage ratio: EBITDA in relation to total interest expenses.

Cash flow from operating activities per share: Cash flow from operating activities for the period divided by the number of shares outstanding on the balance-sheet date.

Return on equity:profit after tax divided by average shareholders’equity

Working capital: items on the assets side (inventories, current receivables) less items on the liabilities side (accounts payable, current income tax liabilities, other liabilities, accrued expenses and deferred income).

Net debt: Interest-bearing liabilities less cash and cash equivalents.

Net debt/EBITDA: Interest-bearing liabilities excluding shareholder loans minus cash and cash equivalents divided by EBITDA.

Equity/assets ratio: shareholders’ equity divided by total assets

Stock turnover: Inventory costs for the year divided by the average inventory (mean value of incoming and outgoing inventory value).

Capital employed: Shareholders’ equity plus net debt.

Return on capital employed: EBITA divided by average capital employed.

Return on equity: Earnings for the year divided by average equity.

Equity per share: Shareholders’ equity divided by the number of outstanding shares.

Equity ratio/risk-bearing capital: Shareholders’ equity plus subordinated shareholder loans divided by total assets.

Interest-bearing liabilities: borrowing from credit institutions plus other long-term liabilities.

Long-term non-interest-bearing liabilities: long-term liabilities without interest-rate obligations.

Average working capital, % of net sales: the average working capital for the year, as defined by the Group, divided by net sales