The financial reports 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. Below is a list of definitions of all measures and indicators used, referred to and presented in the financial reports.
Computation of average amounts and annualized income statement measures
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. The calculation of Net debt/EBITDA is an exception, see definition below. Adjustments are made for acquired and divested operations.
Change in net sales
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 currency translation effects.
Change in net sales, adjusted for changes in exchange rates, acquisitions and divestments.
Change in net sales, adjusted for organic growth, changes in exchange rates and divestments. The impact from acquisitions relates to net sales reported by acquired operations within 12 months after the acquisition date.
Change in net sales, adjusted for organic growth, changes in exchange rates and acquisitions. The impact from divestments relates to net sales reported by the divested operations within 12 months before the divestment date.
Operating income excluding amortization of intangible assets.
EBITA expressed as a percentage of net sales.
Operating income excluding depreciation and amortization.
Operating margin (EBIT margin)
Operating income (EBIT) expressed as a percentage of net sales.
Operating margin (EBIT margin) excluding non-recurring items
Operating income (EBIT) excluding non-recurring items, expressed as a percentage of net sales.
Return on net assets
Operating income (annualized) expressed as a percentage of average net assets.
Return on equity
Income for the period (annualized) expressed as a percentage of average total equity.
Net debt/equity ratio
Net debt in relation to total equity.
Net debt at end of period in relation to EBITDA, excluding non-recurring items, calculated at average rates for the period.
Total equity as a percentage of total assets less liquid funds.
Net sales (annualized) divided by average net assets.
Earnings per share, Basic
Income for the period attributable to equity holders of the Parent Company divided by the average number of shares excluding shares held by Electrolux.
Earnings per share, Diluted
Income for the period attributable to equity holders of the Parent Company divided by the average number of shares after dilution, excluding shares held by Electrolux.
Equity per share
Total equity divided by total number of shares excluding shares held by Electrolux.
Cash and cash equivalents, short-term investments, financial derivative assets and prepaid interest expenses and accrued interest income.
Operating working capital
Inventories and trade receivables less accounts payable.
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 liabilities, accrued interest expenses and prepaid interest income.
Total short-term borrowings
Short-term borrowings, financial derivative liabilities, accrued interest expenses and prepaid interest income.
Long-term borrowings and short-term borrowings exclusive of liabilities related to trade receivables with recourse.
Financial net debt
Total borrowings less liquid funds.
Net provision for post-employment benefits
Provisions for post-employment benefits less pension plan assets.
Financial net debt and net provision for post-employment benefits.
Operating cash flow after investments
Cash flow from operations and investments adjusted for financial items paid, taxes paid and acquisitions/divestments of operations.
Material profit or loss items in operating income which are relevant for understanding the financial performance when comparing income for the current period with previous periods.
For more information, see note 7 in the Annual Report.