Definitions and key ratios
IFRS key ratios
|Earnings per share (EPS)||Net result attributable to equity holders of the parent / Weighted average number of ordinary shares.|
Alternative performance measures (APMs)
|Key figure||Definition and reason for use|
|Adjusted EBITA and -margin||
Eltel has changed its terminology in Q1 2023 from operative EBITA to adjusted EBITA for the purpose of additional clarity and alignment with the market practice.
Adjusted EBITA and -margin, % are used to measure business and segment profitability. Income statement items below adjusted EBITA are not allocated to segments.
Adjusted EBITA margin, %: Adjusted EBITA / Net sales x 100
Adjusted EBITA and -margin, % for segments represent the sum of segments: Finland, Sweden, Norway and Denmark.
|Items affecting comparability
Items for specific events which management does not consider to form part of the ongoing operative business.
These include capital gains and/or losses and transaction costs related to divestments and acquisitions, restructuring and resizing expenses and other items that according to Eltel's management's assessment are not related to normal business operations.
|EBITDA and adjusted EBITDA||EBITDA is operating result (EBIT) before depreciations and amortizations. Adjusted EBITDA excludes items affecting comparability. Adjusted EBITDA is used in calculating the leverage ratio.|
Operating result (EBIT) and -margin% are used to measure profitability before interest and taxes.
EBIT margin, %: EBIT x 100 / Net sales
|Return on equity (ROE), %||
Return on equity (ROE), % represents the rate of return that shareholders receive on their investments.
Return on equity (ROE), %1): Net result / Total equity (average over the reporting period) x 100
|Operative capital employed and Return on operative capital employed (ROCE), %||
Operative capital employed is the amount of net operating assets the business uses in its operations.
Return on operative capital employed (ROCE), % represents how effectively total net operating assets are used in order to generate return in the operating business.
Operative capital employed:
Return on operative capital employed (ROCE), %1):
|Net debt and leverage ratio||
Net nebt represents Eltel's indebtedness. It is used to monitor capital structure and financial capacity. It is also used in calculating the Leverage ratio. The leverage ratio is defined as covenant in Eltel's financing agreement.
Net debt: Interest-bearing debt - cash and cash equivalents
Leverage ratio1): Net debt / Adjusted EBITDA
|Net working capital||
Net working capital is used to follow the amount of short-term running capital needed for the business to operate. Used also as a factor to calculate operative capital employed.
Net working capital:
|Committed order backlog||Committed order backlog is the total value of committed purchase orders received but not yet recognized as sales. It does not include frame agreements unless a binding purchase order has been received. It is the best measure of unsatisfied performance obligations according to IFRS 15 Revenue from contracts with customer.|
1) Calculated on a rolling 12 months basis