Calculation of key ratios
■ Alternative performance measures
Definition
Key figure
Justification for the use of the key figure
Profitability
= Result before income tax, financial income and expenses, exchange gains and losses and share of results from associated companies and joint ventures
The key figure describes the Group’s ability to produce a profit from its busi- ness, and it is independent of the company’s capital structure
Operating result
The key figure shows how much margin is left over from the Group’s sales after deducting the variable and fixed costs of business before depreciation, amortisation and impairment The key figure describes the Group’s ability to produce a profit with the assets invested in the Group by shareholders
= Operating result before depreciation, amortisation and impairment losses
EBITDA
Result before income tax - income taxes
Return on equity (%)
=
Shareholder’s equity (average)
= Result before income taxes + net exchange differences and other financial expenses Balance total + non-interest bearing liabilities (average)
Return on capital employed (%)
The key figure describes the Group’s ability to produce a profit on the capital invested, from the point of the party investing the capital
Financial position
Shareholder’s equity
The key figure describes the Group’s capital structure, solvency and ability to take care of its commitments in the long run
Equity ratio (%)
=
Balance total - advance payments received
Interest-bearing net liabilities
Net gearing ratio (%)
=
The key figure describes the Group’s capital structure and financial position
Shareholder’s equity
Interest-bearing liabilities – cash and cash equivalents and interest-bearing receivables
Interest-bearing net liabilities =
The key figure describes the Group’s indebtedness
Other
The key figure describes the Group’s application of funds for maintaining and renewing its production machinery and plants and for expanding its business with corporate acquisitions
Investments in owned and leased fixed assets and investments in business combinations
Total investments
=
= Net cash flow arising from operating activities + net interest expenses
Interest cover
The key figure describes the Group’s ability to meet its debt obligations
Net interest expenses
■ Share performace indicators
Key figure
Definition
= Profit attributable to shareholders of parent company Adjusted number of shares (average
Earnings per share
Equity attributable to shareholders of parent company Adjusted number of shares at the end of the period
Shareholders’ equity per share =
Dividends Adjusted number of shares at 31 December
Dividend per share
=
Dividend per share Earnings per share
Payout ratio (%)
=
Dividend per share Share price at 31 December Share price at 31 December Earnings per share Share price at 31 December Shareholders' equity per share
Dividend yield (%)
=
Price/earnings ratio (P/E ratio) (%)
=
P/BV (%)
=
Total traded volume per share (EUR) Average adjusted number of shares traded during the financial year
Adjusted average share price =
Market capitalisation
= Number of shares x market price at the end of period
The presentation of earnings per share is regulated by the Decree of the Ministry of Finance on the Regular Duty of Disclosure of an Issuer of a Security. In addition, the earnings per share ratio is regulated by the IAS 33 standard.
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Key figures | METSÄ BOARD ANNUAL AND SUSTAINABILITY REPORT 2022
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