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|
Operative EBITA and -margin, % are used to measure business and segment profitability. Income statement items below operative EBITA are not allocated to segments.
Operative EBITA margin, %: Operative EBITA x 100 / Net sales
Operative EBITA and -margin, % for segments represent the sum of segments: Finland, Sweden, Norway and Denmark.
|Items affecting comparability
||Items affecting comparability are items for specific events which management does not consider to form part of the ongoing operative business, typically gain/loss of acquisition and divestment of businesses.|
|EBITDA||EBITDA is operating result (EBIT) before depreciations and amortisations. Used in calculating the leverage ratio.|
|Operating result (EBIT)||
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||
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 debt 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 (excluding shareholder loans) - cash and cash equivalents
Net debt, 2021 financing agreement:
Leverage ratio1): Net debt / 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 orders received but not yet recognised as sales. 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