Key figure definitions

Margins

Gross margin
Operating profit before depreciation (EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortisation) as a percentage of net sales.

Operating margin
Operating profit as a percentage of net sales. Operating margin shows the percentage of revenue remaining as operating profit after deducting all operating expenses. The measure is used in business review as well as for benchmarking with peer companies. 

Return

Return on capital employed (ROCE)
Operating profit calculated over 12 months as a percentage of average capital employed calculated per quarter. The return on capital employed is a measure that shows how effectively total net operating assets are used in order to generate return in the operating business. The measure takes capital invested in the operating activities into account and is used in business review and benchmarking with peer companies.  

Return on equity
Profit calculated over 12 months, attributable to owners of the parent company, as a percentage of average shareholders’ equity calculated per quarter, attributable to owners of the parent company. The measure represents total profitability compared to the equity invested by the parent company’s shareholders. 

Diluted return on equity
Profit/loss for the period, attributable to parent company shareholders, as a percentage of average shareholders' equity, attributable to parent company shareholders, plus the effect of estimated participation in the incentive programme.

Capital structure

Capital employed
Total assets less non-interest bearing liabilities, non-interest bearing provisions and interest-bearing assets. The measure is used to quantify the net total assets used in the operating business, and is used as a component in measuring operating profitability.

Shareholders’ equity
Shareholders’ equity at the end of the period.

Diluted shareholders' equity
Shareholders’ equity at the end of the period plus the effect of estimated participation in the incentive programme.

Interest-bearing net debt
Interest-bearing provisions and liabilities less interest-bearing assets.

Capital turnover
Net turnover divided by average capital employed.

Interest coverage
Operating profit plus financial income divided by financial expenses.

Working capital
Inventories, accounts receivables and other operating receivables less accounts payables and other operating liabilities. The measure shows the amount of current net assets that is tied up in the business. Together with non-current assets, working capital constitutes the operating capital employed to generate operating returns.

Working capital as percentage of net sales
Average working capital for the last three months, divided by annual net sales at year end or annualised net sales during interim-quarter (net sales for the quarter multiplied by four). Working capital in relation to net sales shows how effectively the working capital is used. A lower percentage means less capital is tied up to generate a given amount of revenue, and an increased ability to internally finance growth and return to shareholders.  

 

  

Per share data

Earnings per share
Profit/loss for the period, attributable to parent company shareholders, divided by the average number of shares on the market.

Diluted earnings per share
Profit/loss for the period, attributable to parent company shareholders, divided by the average number of shares on the market after estimated participation in the incentive programme.

Shareholders’ equity per share
Shareholders' equity at the end of the period, attributable to parent company shareholders, divided by the number of shares on the market at the end of the period.

Shareholders’ equity per share, diluted
Shareholders’ equity at the end of the period, attributable to parent company shareholders, plus the effect of estimated participation in the incentive programme, divided by the number of shares on the market at the end of the period plus the effect of estimated participation in the incentive programme.

Cash flow from operating activities per share
Cash flow from operating activities divided by the average number of shares on the market during the period.

Operating cash flow per share
Cash flow from operating activities including net investments in property, plant and equipment and acquisitions of financial assets, divided by the average number of shares on the market over the period.

P/E ratio
Share price at year-end divided by earnings per share.

EV/EBITDA
Market capitalisation plus interest-bearing net debt, divided by operating profit before depreciation, amortisation and impairment losses (EBITDA = Earnings Before Interest, Tax, Depreciation and Amortisation).

Glossary

 

Fluting
The rippled middle layer in corrugated board. Produced from primary or recycled fibre.

Market pulp
Pulp which is sold to paper mills that do not produce their own pulp

MF Paper (machine finished)
A calendered paper with high printability combined with high strength. Used for packaging with a special need for this combination.

MG Paper (mono glazed paper)
Paper which is dried on a highly polished Yankee cylinder, giving it a smooth, glossy surface on one side. Used for packaging with stringent demands on purity, for example.

Sulphate pulp
Chemical pulp produced by cooking wood under high pressure and at a high temperature in cooking liquor, known as white liquor (sodium hydroxide and sodium sulphide). Sulphate pulp is also known as kraft pulp.

Last updated: 2016-04-26