Definitions and key figures
Capital employed The Group’s and business area’s capital employed is calculated as an average of the balance sheet’s total assets, excluding interest-bearing assets and pension assets, less total liabilities, excluding interest-bearing liabilities and pension liabilities.
Equity The equity reported in the consolidated balance sheet consists of taxed equity increased by the equity portion of the Group’s untaxed reserves and non-controlling interests. (Deferred tax liability in untaxed reserves has been calculated at a 22.0% rate for Swedish companies and at the applicable tax rate for foreign companies in each country outside Sweden).
Net debt The sum of consolidated interest-bearing liabilities, including pension liabilities and accrued interest less cash and cash equivalents and interest-bearing current and non-current receivables and capital investment shares.
Equity per share Equity in relation to the total number of registered shares.
Equity/assets ratio Equity expressed as a percentage of total assets.
Debt/equity ratio Expressed as net debt in relation to equity.
Interest coverage ratio Calculated according to the net method where operating profit is divided by financial items.
Cash earnings Calculated as profit before tax, with a reversal of depreciation and impairment of property, plant and equipment and intangible assets, share of profits of associates, and nonrecurring items, reduced by tax payments.
Debt payment capacity Expressed as cash earnings in relation to average net debt.
Operating surplus Expressed as operating profit before depreciation/impairment of property, plant and equipment and intangible assets and share of profits of associates.
Operating cash flow The sum of operating cash surplus and change in working capital, with deductions for current capital expenditures in property, plant and equipment and restructuring costs.
Cash flow from current operations Operating cash flow less net financial items and tax payments and taking into account other financial cash flow.
Strategic capital expenditure Strategic investments increase the company’s future cash flow through acquisitions of companies, capital expenditures to expand facilities, or new technologies that boost SCA’s competitiveness.
Current capital expenditure Investments to maintain competitiveness, such as maintenance, rationalization and replacement measures or investments of an environmental nature.
Organic sales growth Sales growth excluding exchange rate effects, acquisitions and divestments.
Operating surplus margin Operating surplus as a percentage of net sales for the year.
Operating margin Operating profit as a percentage of net sales for the year.
Net margin Profit for the year as a percentage of net sales for the year.
Capital turnover Net sales for the year divided by average capital employed.
Return on capital employed Accumulated return on capital employed is calculated as 12-month rolling operating profit as a percentage of average capital employed for the five most recent quarters. The corresponding key figure for a single quarter is calculated as operating profit for the quarter multiplied by four as a percentage of average capital employed for the two most recent quarters.
Return on equity Return on equity is calculated for the Group as profit for the year as a percentage of average equity.
Value added per employee Operating profit plus salaries, wages and payroll expenses divided by the average number of employees.