Definitions of key ratios

 
Return on Equity (ROE), % Profit before taxes – taxes
=
x 100
Total equity, average
 
Return on Investment (ROI), % Profit before taxes + interest and other financing costs
=
x 100
Balance sheet total – non-interest-bearing liabilities, average
 
Solvency, % Total equity
=
x 100
Balance sheet total - advance payments received
 
Gearing, % Net interest-bearing liabilities
=
x 100
Total equity
 
Net interest-bearing liabilities Interest-bearing liabilities – cash, bank receivables and financial assets excluding restricted cash
=
 
Earnings per share (EPS) Profit for the period attributable to equity holders of the parent company
=
Average number of shares adjusted for share issue in financial period excluding treasury shares
 
Equity per share ratio Equity attributable to the owners of the parent company
=
Number of shares adjusted for share issue at end of year
 
Dividend per share ratio Dividend per share
=
x 100
Earnings per share
 
Effective dividend yield Dividend per share
=
x 100
Share price at end of financial period
 
Price-Earnings ratio (P/E) Share price at end of financial period
=
Earnings per share
 
Market value of shares Number of shares at end of financial period x last trading price
=
 
Average share price Total value of shares traded (€)
=
Total number of shares traded
 
Gross profit margin, % Gross profit
=
x 100
Net sales
 
Operating profit margin, % Operating profit
=
x 100
Net sales
 
Comparable gross profit Gross profit - items affecting comparability*
=
 
Comparable gross profit margin, % Gross profit - items affecting comparability*
=
x 100
Net sales
 
Comparable operating profit margin Operating profit - items affecting comparability*
=
 
Comparable operating profit margin, % Operating profit - items affecting comparability*
=
x 100
Net sales

*) Items affecting comparability are exceptional transactions that are not related to normal business operations. The most common items affecting comparability are capital gains and losses, inefficiencies in production related to manufacturing facility closures, additional writedowns, or reversals of write-downs, expenses due to accidents and disasters, provisions for planned restructurings, environmental matters, penalties, and changes in legislation and legal proceedings. The Group’s management exercises its discretion when taking decisions regarding the classification of items affecting comparability.