{"id":3913,"date":"2025-03-13T13:40:07","date_gmt":"2025-03-13T12:40:07","guid":{"rendered":"https:\/\/www.profilgruppen.se\/economic-reports\/economic-concepts\/"},"modified":"2025-06-10T09:30:17","modified_gmt":"2025-06-10T07:30:17","slug":"economic-concepts","status":"publish","type":"page","link":"https:\/\/www.profilgruppen.se\/en\/investors\/economic-reports\/economic-concepts\/","title":{"rendered":"Economic concepts"},"content":{"rendered":"\n
\n
\n
\nShare of risk-bearing capital<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

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

Reason for use<\/strong>Relevant from a credit point of view, shows the ability to absorb losses.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nReturn on equity<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

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. <\/p>\n\n\n\n

Reason for use<\/strong>Relevant from a shareholder perspective as it reflects the return over the period on shareholders’ capital.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nReturn on capital employed<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Profit before tax and before financial charges as a percentage of average capital employed during the period See definition of capital employed below.<\/p>\n\n\n\n

Reason for use<\/strong>Relevant for investors and lenders as it shows the return on capital that requires a return, used to optimize capital allocation.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\n
\nBalance sheet total<\/span>\n<\/div>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

The value of all assets, such as real estate, machinery and equipment, inventories, accounts receivable and cash.<\/p>\n\n\n\n

Reason for use<\/strong>Relevant for stakeholders to easily follow changes in the total assets of the group.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nEquity per share<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Equity excluding non-controlling interests divided by the number of shares.<\/p>\n\n\n\n

Reason for use<\/strong>Relevant measure for investors of the amount of debt to owners related to each share<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nInvestments<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Fixed assets acquired during the period<\/p>\n\n\n\n

Reason for use<\/strong>Relevant to show the overall size of investments made to maintain existing capacity and create growth<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nCapital turnover rate<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Revenue divided by average capital employed<\/p>\n\n\n\n

Reason for use<\/strong>Relevant for assessing the average rate of capital utilization, a kind of measure of capital efficiency<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nCash flow from operating activities<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Cash flow from operating activities, excluding financing and investing activities<\/p>\n\n\n\n

Reason for use<\/strong>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.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nCash flow per share<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Cash flow from operating activities divided by average number of shares<\/p>\n\n\n\n

Reason for use<\/strong>Relevant to relate cash generating capacity to the number of shares<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nLiquidity reserve<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Cash and cash equivalents and unutilized bank credit facilities at end of period<\/p>\n\n\n\n

Reason for use<\/strong>Relevant for assessing the ability to finance future operations and variations in cash flow through the company<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nNet debt\/EBITDA<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Net interest-bearing debt divided by profit before depreciation and amortization<\/p>\n\n\n\n

Reason for use<\/strong>Relevant for assessing the ability to repay the loans, which is of interest to lenders and investors<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nNet debt\/equity ratio<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Net interest-bearing debt divided by equity<\/p>\n\n\n\n

Reason for use<\/strong>Relevant to assess the capital structure, the split between equity and debt<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nOperating margin<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Operating profit as a percentage of revenue<\/p>\n\n\n\n

Reason for use<\/strong>Relevant to assess the proportion of revenue retained as profit from operating activities<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nOperational performance<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Operating profit excluding items affecting comparability and market price changes during the period of the metal exposure<\/p>\n\n\n\n

Reason for use<\/strong>Relevant as a measure of operational performance<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nResult of metal position at risk<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Change in market value of the average risky metal position <\/p>\n\n\n\n

Reason for use<\/strong>Relevant to show outcome of profit impact due to change in market price of metal<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nEarnings before interest, taxes, depreciation and amortization (EBITDA)<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Operating profit before depreciation according to plan and impairment losses <\/p>\n\n\n\n

Reason for use<\/strong>Relevant as a measure of the ability of the business to generate cash flow before capital tied up in operations and financial flows<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nEarnings per share<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Profit for the period excluding profit attributable to non-controlling interests divided by the average number of shares <\/p>\n\n\n\n

Reason for use<\/strong>Relevant for investors to assess stock performance and valuation<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nProfit margin<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Profit before tax as a percentage of revenue<\/p>\n\n\n\n

Reason for use<\/strong>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 <\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nMetal position at risk<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Net of aluminum volume in stock, contracted inflows and contracted outflows<\/p>\n\n\n\n

Reason for use<\/strong>Relevant to show the volume of future profit impact of the market price change<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nNet interest-bearing debt<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Interest-bearing liabilities and interest-bearing provisions (provisions for pensions) less cash and cash equivalents<\/p>\n\n\n\n

Reason for use<\/strong>Relevant for assessing total interest-bearing debt burden used<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nInterest coverage ratio<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Profit before tax and before financial charges divided by financial charges<\/p>\n\n\n\n

Reason for use<\/strong>Relevant for creditors as a measure of ability to cover interest costs<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nOperating margin<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Operating profit as a percentage of revenue<\/p>\n\n\n\n

Reason for use<\/strong>Relevant for assessing the share of revenue retained as profit from operations, can also be used for comparison between companies<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nOperating result<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Profit before tax and financial items<\/p>\n\n\n\n

Reason for use<\/strong>Relevant as a performance measure<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nTotal profit after financial items and tax
(Not used from Q1 2025. From Q4 2023 until Q4 2024 this APM is reported).<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

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 <\/p>\n\n\n\n

Reason for use<\/strong>Relevant to assess the overall performance of the company during the period<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nTotal earnings after financial items and tax per share
(Not used from Q1 2025. From Q4 2023 until Q4 2024 this APM is reported).<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Total profit after financial items and tax excluding profit attributable to non-controlling interests divided by the average number of shares<\/p>\n\n\n\n

Reason for use<\/strong>Relevant for investors to assess stock performance and valuation<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nTotal operating income
(Not used from Q1 2025. From Q4 2023 until Q4 2024 this APM is reported).<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

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 <\/p>\n\n\n\n

Reason for use<\/strong>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<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nSolidity<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Equity as a percentage of total assets<\/p>\n\n\n\n

Reason for use<\/strong>Relevant as a measure of current self-financing as it shows the proportion of assets financed by equity<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nNet asset value per share<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

See equity per share<\/p>\n\n\n\n

<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

\n
\nCapital employed<\/span>\n\n\n\n<\/polyline><\/svg><\/span><\/polyline><\/svg><\/span><\/span>\n<\/div>\n\n\n\n
\n
\n

Equity and interest-bearing liabilities<\/p>\n\n\n\n

Reason for use<\/strong>Relevant to show how much total capital is used in operations and is one component of measuring return from operations<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n

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.<\/p>\n","protected":false},"excerpt":{"rendered":"

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.<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":3875,"menu_order":5,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"layout":[144],"modul":[],"class_list":{"0":"post-3913","1":"page","2":"type-page","3":"status-publish","5":"layout-standardmall-en"},"acf":[],"_links":{"self":[{"href":"https:\/\/www.profilgruppen.se\/en\/wp-json\/wp\/v2\/pages\/3913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.profilgruppen.se\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.profilgruppen.se\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.profilgruppen.se\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.profilgruppen.se\/en\/wp-json\/wp\/v2\/comments?post=3913"}],"version-history":[{"count":1,"href":"https:\/\/www.profilgruppen.se\/en\/wp-json\/wp\/v2\/pages\/3913\/revisions"}],"predecessor-version":[{"id":3914,"href":"https:\/\/www.profilgruppen.se\/en\/wp-json\/wp\/v2\/pages\/3913\/revisions\/3914"}],"up":[{"embeddable":true,"href":"https:\/\/www.profilgruppen.se\/en\/wp-json\/wp\/v2\/pages\/3875"}],"wp:attachment":[{"href":"https:\/\/www.profilgruppen.se\/en\/wp-json\/wp\/v2\/media?parent=3913"}],"wp:term":[{"taxonomy":"layout","embeddable":true,"href":"https:\/\/www.profilgruppen.se\/en\/wp-json\/wp\/v2\/layout?post=3913"},{"taxonomy":"modul","embeddable":true,"href":"https:\/\/www.profilgruppen.se\/en\/wp-json\/wp\/v2\/modul?post=3913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}