This report includes financial measures as required by the financial reporting framework applicable to Electrolux, which is based on IFRS. In addition, there are other measures and indicators that are used to follow-up, analyze and manage the business and to provide Electrolux stakeholders with useful financial information on the Group’s financial position, performance and development in a consistent way. These other measures and indicators are considered essential in supporting the Group’s financial goals to achieve a combination of continuous growth, high profitability, a stable cash flow, and an optimal capital base to generate a high total return for Electrolux shareholders. Thus, there are measures related to growth, profitability and capital, share-based measures and capital indicators which are considered relevant to present on a continuous basis. Below is a list of definitions of all measures and indicators used, referred to and presented in this report.
In computation of key ratios where averages of capital balances are related to income statement measures, the average capital balances are based on the opening balance and all quarter-end closing balances included in the reporting period, and the income statement measures are annualized, translated at average rates for the period. In computation of key ratios where end-of-period capital balances are related to income statement measures, the latter are annualized, translated at end-of-period exchange rates. Adjustments are made for acquired and divested operations.
Current year net sales for the period less previous year net sales for the period as a percentage of previous year net sales for the period.
Change in net sales, adjusted for acquisitions, divestments and changes in exchange rates.
Change in net sales less organic growth. Acquired growth relates to net sales reported by acquired operations within 12 months after the acquisition date.
Operating income (EBIT) expressed as a percentage of net sales.
Operating income (annualized) expressed as a percentage of
average net assets.
Income for the period (annualized) expressed as a percentage of average total equity.
Net debt in relation to total equity.
Total equity as a percentage of total assets less liquid funds.
Net sales (annualized) divided by average net assets.
Income for the period attributable to equity holders of the Parent Company divided by the average number of shares excluding shares held by Electrolux.
Total equity divided by total number of shares excluding shares held by Electrolux.
Cash and cash equivalents, short-term investments, financial derivative assets1) and prepaid interest expenses and accrued interest income1).
Total current assets exclusive of liquid funds, less non-current other provisions and total current liabilities exclusive of total short-term borrowings.
Total assets exclusive of liquid funds and pension plan assets, less deferred tax liabilities, non-current other provisions and total current liabilities exclusive of total short-term borrowings.
Long-term borrowings and short-term borrowings, financial derivative liabilities1), accrued interest expenses and prepaid interest income1).
Short-term borrowings, financial derivative liabilities1), accrued interest expenses and prepaid interest income1).
Long-term borrowings and short-term borrowings exclusive of liabilities related to trade receivables with recourse1).
Total borrowings less liquid funds.
Provisions for post-employment benefits less pension plan assets.
Financial net debt and net provision for post-employment benefits.
Cash flow from operations and investments adjusted for financial items paid, taxes paid and acquisitions/divestments of operations.
Operating income plus interest income in relation to total interest expenses.
1) See table Net debt on page 116.