Alternative performance measures and definitions
Alternative performance measures are used to describe the development of operations and to enhance comparability between periods. These are not defined under IFRS but correspond to the methods applied by executive management and Board of Directors to measure the company’s financial performance. Alternative performance measures should not be viewed as a substitute for financial information presented in accordance with IFRS but rather as a complement. For more information and calculations, see www.peab.com/alternative-performance-measures.
Liquid funds and short-term investments along with unutilized credit facilities. Shows the Group´s available liquidity.
Capital employed for the business areas
Total assets in the business areas at the end of the period reduced by deferred tax recoverables and internal receivables from the internal bank Peab Finans with deductions for non-interest-bearing liabilities and deferred tax liabilities. The measurement is used to measure capital utilization and its effectiveness for the business areas, and is only presented as a net amount per business area.
Capital employed for the Group
Total assets at the end of the period less non-interest-bearing operating liabilities and provisions. The measurement is used to measure capital utilization and its effectiveness.
Earnings per share
Profit for the period attributable to shareholders in parent company divided by the average number of outstanding shares during the period.
Equity as a percentage of total assets at the end of the period. Shows financial position.
Equity per share
Equity attributable to shareholders in parent company divided by the number of outstanding shares at the end of the period.
Interest-bearing liabilities including provisions for pensions less liquid funds and interest-bearing assets.
Net debt/equity ratio
Interest-bearing net debt in relation to equity. Shows financial position.
The change in the period of the recognized value of current assets (CB-OB) plus depreciation and write-downs.
Operating profit as a percentage of net sales.
The value at the end of the period of the remaining income in ongoing production plus orders received yet to be produced.
The sum of orders received during the period. Measures how new orders replace produced work.
Return on capital employed
The pre-tax profit of the rolling 12 months period with the addition of financial expenses in percent of the average (last four quarters) capital employed. The measurement is used to measure capital efficiency and to allocate capital for new investments and show the Group’s earning capacity independent of financing.
Return on equity
The profit of the rolling 12 months period attributable to shareholders in parent company divided by the average (last four quarters) equity attributable to shareholders of shares in the parent company. The measurement is used to create efficient business and a rational capital structure and show how the Group has increased shareholders’ equity.