In addition to the key financial ratios that are covered by the IFRS framework, this report also includes other key ratios and measures, so-called alternative performance measures that Pricer considers to be important for monitoring, analyzing and managing its operations. These key ratios and measures also provide Pricer’s stakeholders with useful information about the company’s financial position, profit or loss and development in a consistent manner.
ALTERNATIVE PERFORMANCE MEASURES DEFINITIONS PURPOSE
Gross profit Net sales less cost of goods sold. Gross profit is an important measure for management since it is used to analyze the company’s underlying development excluding factors such as the product mix and price changes that can give rise to sharp fluctuations in net sales.
Gross margin Gross profit as a percentage of net sales. The gross margin is used for both internal evaluation of individual sales/contracts and to monitor development over time for the company as a whole.
Operating expenses Refers to selling expenses, administrative expenses and R&D expenses that are included in operating activities. Operating expenses provide an overall picture of expenses that are charged to operating activities and are an important internal measure that management can influence to a large extent.
Items affecting comparability Expenses of a non-recurring nature that are not part of operating activities, such as personnel expenses related to restructurings. This measure is used by management to understand which costs are not part of the underlying operating activities.
Operating expenses adjusted for items affecting comparability Operating expenses less items affecting comparability. This measure is used by management to enable comparability of operating expenses between periods and to forecast future cost trends.
Operating profit Profit before financial items and tax. Operating profit provides an overall picture of the total profit generation in operating activities. This is a very important measure for internal use that management can influence to a greater extent than net profit.
Operating margin Operating profit as a percentage of net sales. Operating margin is one of management’s most important measures for performance monitoring, since it measures the company’s ability to convert net sales into operating profit.
Equity per share, basic and diluted Equity attributable to owners of the parent company divided by the weighted number of shares before/after dilution on the balance sheet date. The dilutive effect can arise from the company’s outstanding share options and from the matching and performance share rights. This measure is used to show development of equity per share over time and to enable comparability with other companies.
Earnings per share, basic and diluted Profit for the period attributable to owners of the parent company divided by the average number of shares outstanding before/after dilution during the period. The dilutive effect can arise from the company’s outstanding share options and from the matching and performance share rights. This measure is used to show development of earnings per share over time and to enable comparability with other companies.
Order intake The value of binding customer orders, invoiced service contracts and call-off under framework agreements. Does not include the anticipated future value of framework agreements. Order intake is used to measure demand for the company’s products and services during a specific period. This measure is also an important indicator of increases/decreases in demand between periods.
Order backlog The value of incoming orders that have not yet been invoiced. The size of the order backlog gives an indication of revenue development in a short to mid-term perspective.
Equity/assets ratio Equity as a percentage of the balance sheet total. A traditional measure that gives an indication of the company’s ability to pay its debts.
Working capital Non interest-bearing current assets (excluding cash and cash equivalents) less provisions and non interest-bearing current liabilities. This measure is used to understand and predict development of the company’s cash and cash equivalents.
Price-to-sales ratio The share price on the balance sheet date divided by net sales per the average number of share. This measure is used to show the development of earnings per share over time and to enable comparability with other companies.