Investors

Definitions and glossary

Financial key ratio definitions


Capital employed:
Total assets less noninterest-bearing liabilities and noninterest-bearing provisions. Average capital employed is calculated as capital employed at the start of the year plus capital employed at the end of the year, divided by two.

Cash flow from operating activities per share:
Cash flow from operating activities for the year divided by the weighted
average number of shares outstanding before dilution.

Cash flow per share:
Cash flow for the year divided by the weighted average number of shares outstanding before dilution.

Debt-equity ratio:
Interest-bearing liabilities divided by shareholders’ equity including non-controlling interests.

Dividend per cent:
Total dividend divided by profit for the year attributable to owners of the parent.

Dividend yield:
Dividend per share divided by the share price at year-end.

Earnings per share:
Net profit for the year attributable to owners of the parent divided by a weighted average number of shares outstanding before dilution.

Equity ratio:
Shareholders’ equity including non-controlling interests as a percentage of total assets.

Interest-bearing net debt receivable/liability:
Interest-bearing non-current and current receivables and liabilities, including cash and bank balances, and the interest-bearing portion of financial assets.

Interest cover ratio:
Profit after financial items plus financial expenses, divided by financial expenses.

Inventory turnover rate:
The cost of delivered goods divided by the average inventory value.

Like-for-like sales:
Sales for stores that existed and generated sales in the comparison period, broken down into Group-owned and franchise stores.

Margin after financial items:
Profit after financial items as a percentage of net sales for the year.

Net debt-equity ratio (+)/net receivable-equity ratio (-):
Interest-bearing liabilities and provisions less cash and cash equivalents and interest-bearing receivables, divided by shareholders’ equity including non-controlling interests.

Net debt (+)/Net receivable (-):
Interest-bearing liabilities less cash and cash equivalents and interest-bearing receivables.

Operating margin:
Operating profit as a percentage of net sales for the year.

P/E multiple:
Share price in relation to earnings per share.

Pro forma:
Pro forma is a method for reporting changed historical figures that describe financial effects after a change in order to be able to compare with current figures.

Return on capital employed:
Profit after financial items, plus financial expenses, as a percentage of average capital employed.

Return on shareholders’ equity:
Net profit for the period attributable to owners of the parent as a percentage of average equity attributable to owners of the parent. Average equity is calculated as shareholders’ equity at the start of the year plus shareholders’ equity at the end of the year, divided by two.

Sales, Group-owned retail operations:
Sales for Hemköp and Willys stores owned by Axfood.

Sales growth:
Percentage increase in sales between two periods.

Sales of private label products:
Sales of private label products, excluding fruits & vegetables, as a percentage of store sales including Hemköp franchise stores.

Shareholders’ equity per share:
Equity attributable to owners of the parent divided by the number of shares.

Share turnover rate:
The number of shares traded during the year divided by the number of shares outstanding at year- end.

Store sales, Axfood Group:
Sales for Hemköp and Willys stores, including Hemköp franchise stores.

Total capital expenditures:
Investments in intangible and tangible non-current assets, including finance leases.

See also:

Industry related glossary

Sustainability glossary