Definitions of ratios

The definitions of ratios are in line with the recommendations made by the Danish Society of Investment Professionals December 2004, except for the ratios marked by *, which are not defined by the Society. The calculaton of ROCE has been changed to bring the ratio more in line with the recommendations of the Society regarding ROIC.

 

EBITDA margin*	Operating profit adjusted for depreciation and amortisation as a percentage of net revenue
EBIT margin*	Operating profit as a percentage of net revenue
Asset turnover	Net revenue divided by average operational assets
Return on assets	Operating profit as a percentage of average operational assets
Return on equity	Net profit for the year divided by average equity
Equity ratio	Equity at year-end as a percentage of equity and liabilities at year-end
Earnings per share	Net profit for the year divided by average number of shares
Cash earnings per share*	Net profit for the year plus depreciation and amortisation divided by average number of shares
Net asset value per share	Equity at year-end divided by number of shares at year-end
Payout ratio	Dividend divided by profit for the year
NOPAT margin*	Profit for the year adjusted for net financing costs after tax and the year's change in deferred tax, divided by net revenue
Turnover rate of capital employed*	Net revenue divided by average equity plus average long-term debt and short-term interest-bearing debt
ROCE*	Profit for the year adjusted for net financing costs after tax plus the year's change in deferred tax, divided by average equity plus average long-term debt and short-term interest-bearing debt