Glossary: Financial

Capital employed
Total assets less non-interest bearing liabilities including deferred tax liability.

Capital turnover rate
Net sales divided by average capital employed shares.

Cash flow per share
Cash flow for the year divided by the average number of shares.

Equity assets ratio
Shareholders’ equity including minority interests as a percentage of total assets.

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

Gross margin
Gross profit as a percentage of net sales.

Interest coverage ratio
Profit after net financial items plus financial expenses divided by financial expenses.

Net debt/equity ratio
Net interest-bearing liabilities divided by shareholders’ equity.

Net interest-bearing liabilities
Interest-bearing liabilities reduced by liquid funds.

Operating margin
Operating profit as a percentage of sales.

Operating profit
Profit after net financial items as a percentage of sales.

Operating profit after depreciation of tangible fixed assets
Operating profit after depreciation of tangible fixed assets as a percentage of sales.

P/E (Price/Earnings ratio)
Market value of the company divided by profit after full tax.

P/S (Price/Sales ratio)
Market value of the company divided by net sales.

Profit per employee
Operating profit after depreciation divided by the average number of annual employees.

Profit/loss per share
Profit for the period after full tax divided by the average number of shares.

Return on capital employed
Profit after net financial items plus financial expenses divided by average shareholders’ equity.

Return on equity
Profit after net financial items less full tax divided by average shareholders’ equity.

Return on total capital
Profit after net financial items plus financial expenses divided by the average balance sheet total.

Sales per employee
Sales divided by the average number of annual employees.

Share of risk-bearing capital
Shareholders’ equity plus minority interests and deferred tax liabilities as a percentage of the balance sheet
total.

Shareholders' equity 
A company's net worth; that is, a company's total assets minus total liabilities.