Economic concepts

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Share of risk-bearing capital

Equity and deferred tax liabilities as a percentage of total assets. Relevant from a credit point of view, showing the ability to absorb losses.

Reason for use
Relevant from a credit point of view, shows the ability to absorb losses.

Return on equity

Profit for the year as a percentage of average equity during the period. When reporting an interim period, the result is extrapolated to correspond to a 12-month period.

Reason for use
Relevant from a shareholder perspective as it reflects the return over the period on shareholders’ capital.

Return on capital employed

Profit before tax and before financial charges as a percentage of average capital employed during the period See definition of capital employed below.

Reason for use
Relevant for investors and lenders as it shows the return on capital that requires a return, used to optimize capital allocation.

Balance sheet total

The value of all assets, such as real estate, machinery and equipment, inventories, accounts receivable and cash.

Reason for use
Relevant for stakeholders to easily follow changes in the total assets of the group.

Equity per share

Equity excluding non-controlling interests divided by the number of shares.

Reason for use
Relevant measure for investors of the amount of debt to owners related to each share

Investments

Fixed assets acquired during the period

Reason for use
Relevant to show the overall size of investments made to maintain existing capacity and create growth

Capital turnover rate

Revenue divided by average capital employed

Reason for use
Relevant for assessing the average rate of capital utilization, a kind of measure of capital efficiency

Cash flow from operating activities

Cash flow from operating activities, excluding financing and investing activities

Reason for use
Relevant to monitor the ability of the business to generate cash flow to finance new investments, repayments and dividends and to assess the need for new external financing.

Cash flow per share

Cash flow from operating activities divided by average number of shares

Reason for use
Relevant to relate cash generating capacity to the number of shares

Liquidity reserve

Cash and cash equivalents and unutilized bank credit facilities at end of period

Reason for use
Relevant for assessing the ability to finance future operations and variations in cash flow through the company

Net debt/EBITDA

Net interest-bearing debt divided by profit before depreciation and amortization

Reason for use
Relevant for assessing the ability to repay the loans, which is of interest to lenders and investors

Net debt/equity ratio

Net interest-bearing debt divided by equity

Reason for use
Relevant to assess the capital structure, the split between equity and debt

Operating margin

Operating profit as a percentage of revenue

Reason for use
Relevant to assess the proportion of revenue retained as profit from operating activities

Operational performance

Operating profit excluding items affecting comparability and market price changes during the period of the metal exposure

Reason for use
Relevant as a measure of operational performance

Result of metal position at risk

Change in market value of the average risky metal position

Reason for use
Relevant to show outcome of profit impact due to change in market price of metal

Earnings before interest, taxes, depreciation and amortization (EBITDA)

Operating profit before depreciation according to plan and impairment losses

Reason for use
Relevant as a measure of the ability of the business to generate cash flow before capital tied up in operations and financial flows

Earnings per share

Profit for the period excluding profit attributable to non-controlling interests divided by the average number of shares

Reason for use
Relevant for investors to assess stock performance and valuation

Profit margin

Profit before tax as a percentage of revenue

Reason for use
Relevant for assessing the proportion of revenue retained as profit, can also be used for comparison between companies. It also shows resilience to negative deviations

Metal position at risk

Net of aluminum volume in stock, contracted inflows and contracted outflows

Reason for use
Relevant to show the volume of future profit impact of the market price change

Net interest-bearing debt

Interest-bearing liabilities and interest-bearing provisions (provisions for pensions) less cash and cash equivalents

Reason for use
Relevant for assessing total interest-bearing debt burden used

Interest coverage ratio

Profit before tax and before financial charges divided by financial charges

Reason for use
Relevant for creditors as a measure of ability to cover interest costs

Operating margin

Operating profit as a percentage of revenue

Reason for use
Relevant for assessing the share of revenue retained as profit from operations, can also be used for comparison between companies

Operating result

Profit before tax and financial items

Reason for use
Relevant as a performance measure

Total profit after financial items and tax
(Not used from Q1 2025. From Q4 2023 until Q4 2024 this APM is reported).

Profit for the period adjusted by (1) the difference (accrual) between valuation of inventories and contracted flows and (2) the market value at the balance sheet date of the metal position at risk

Reason for use
Relevant to assess the overall performance of the company during the period

Total earnings after financial items and tax per share
(Not used from Q1 2025. From Q4 2023 until Q4 2024 this APM is reported).

Total profit after financial items and tax excluding profit attributable to non-controlling interests divided by the average number of shares

Reason for use
Relevant for investors to assess stock performance and valuation

Total operating income
(Not used from Q1 2025. From Q4 2023 until Q4 2024 this APM is reported).

Operating profit adjusted by (1) the difference (accrual) between valuation of inventories and contracted flows and (2) the market value at the balance sheet date of the metal position at risk

Reason for use
Relevant to assess the overall performance of the company during the period showing the sum of operating activities, metal risk position results and items affecting comparability

Solidity

Equity as a percentage of total assets

Reason for use
Relevant as a measure of current self-financing as it shows the proportion of assets financed by equity

Net asset value per share

See equity per share

Capital employed

Equity and interest-bearing liabilities

Reason for use
Relevant to show how much total capital is used in operations and is one component of measuring return from operations


The ratios are based on the Group’s figures including non-controlling interests, with the exception of Earnings per share, Total earnings per share after financial items and tax, and Net asset value per share.