Alternative performance indicators (APMs)

Invested capital

Invested capital is a financial measure that indicates how much capital a company has invested on average during a certain period. This capital is used to generate income and is calculated as the invested capital at the beginning and end of the period.

Working capital

Working capital is an indicator that shows how the short-term operation is financed. Working capital is calculated as the total of current assets (excluding cash and cash equivalents) less the total of current liabilities (excluding short-term interest-bearing loans and other financing obligations - and lease obligations that are part of the net debt/net cash 

Return on capital employed (ROCE)

The return on capital employed (ROCE) is a financial ratio used to measure the efficiency with which capital is used to generate profit. The ROCE indicates how much return the Group generates on the average amount of capital invested during a certain period. The calculation is based on the average invested capital over a four-quarter period.

Net debt / (Net cash)

Net debt / (Net cash) is a metric used to assess financial health. It is calculated by subtracting total cash and cash equivalents from total interest-bearing loans and borrowings and other financial liabilities and lease liabilities. Depending on the balance, we refer to either net debt or net cash. This metric is determined as follows:

Underlying EBITDA

Underlying EBITDA is the operating result before depreciation and amortisation, including EBITDA from joint ventures, excluding any impairment of real estate and/or goodwill, restructuring costs, acquisition costs, including retention bonuses and book results on the sale or purchase of entities. The underlying EBITDA defined as such also forms the basis of the calculation of the covenants to the banking group. It can be broken down as follows:

Underlying EBITDA-margin

The underlying EBITDA-margin refers to the calculated underlying EBITDA divided by revenue.

Net margin

The net margin is the ratio that measures profitability by comparing profit after tax to revenue. It can be broken down as follows:

Operating margin

Operating margin is the ratio used to measure operational efficiency and profitability. It indicates how much profit is generated in relation to revenue, net of operating costs. It can be broken down as follows:

Profit after taxes as a % of equity

‘Profit after tax as a percentage of equity’ is the ratio that measures profitability relative to equity. 

Profit after tax as a % of revenue

‘Profit after tax as a percentage of revenue’ is the ratio that indicates what percentage of revenue remains as profit after tax. 

Solvency ratio

Solvency is the financial term that describes the degree to which a company is able to fulfil its financial obligations.