Investor relations
Glossary
Definitions of the financial and operational performance measures Tessin uses in its reporting.
Financial performance measures not defined under IFRS
The company presents certain financial performance measures that are not defined under IFRS. Tessin believes these measures provide valuable supplementary information to investors and company management, including that they make it easier to evaluate the business. EBITDA, for example, is reported to show the underlying operating result without the effects of depreciation and amortisation, which gives a more comparable measure because depreciation and amortisation relate to historical investments. Adjusted EBITDA and adjusted EBIT are reported to show the underlying result excluding non-recurring items, such as capital gains or losses, IPO costs, and acquisition, restructuring and integration costs. Because companies calculate performance measures in different ways, these figures are not always comparable with those used by other companies. They should therefore not be treated as substitutes for measures defined under IFRS.
Financial performance measures
- Return on equity
- Profit or loss for the year divided by average equity.
- Return on total capital
- Profit or loss for the year divided by average total assets.
- Gross profit or loss
- Net sales less the cost of goods and services sold.
- Gross margin
- Gross profit or loss as a percentage of net sales.
- EBIT margin / Adjusted EBIT margin
- EBIT / Adjusted EBIT as a percentage of net sales.
- EBITDA margin / Adjusted EBITDA margin
- EBITDA / Adjusted EBITDA as a percentage of net sales.
- Equity per share
- Equity at the end of the period attributable to parent company shareholders divided by the number of shares outstanding at the end of the period.
- Average total assets
- Total assets at the end of the previous year plus total assets at the end of the year, divided by two.
- Average total equity
- Total equity at the end of the previous year plus total equity at the end of the year, divided by two.
- Adjusted EBIT
- EBIT adjusted for items affecting comparability that have affected EBIT.
- Adjusted EBITDA
- EBITDA adjusted for items affecting comparability that have affected EBITDA.
- Adjusted EBITDA per share
- Adjusted EBITDA divided by the volume-weighted average number of shares outstanding in the period after dilution.
- Items affecting comparability
- Non-recurring items such as capital gains or losses, impairment losses, IPO costs, and acquisition, integration and restructuring costs.
- Net margin
- Profit or loss for the period as a percentage of net sales.
- Net debt
- Interest-bearing liabilities less cash and cash equivalents.
- Organic growth
- Change in net sales excluding the contributions of acquired entities, as a percentage of net sales in the comparison period.
- Basic / diluted earnings per share
- Profit or loss for the period attributable to parent company shareholders divided by the volume-weighted average number of shares outstanding before/after dilution.
- Interest-bearing liabilities
- Bank loans and financial lease liabilities.
- Interest coverage ratio
- EBIT plus interest income divided by interest expenses.
- EBIT
- Profit or loss for the period before financial income, financial expenses and tax.
- EBITDA
- Profit or loss for the period before financial income, financial expenses, tax and amortisation and depreciation of property, plant and equipment and intangible assets.
- Equity/assets ratio
- Equity as a percentage of total assets.
- Debt/equity ratio
- Net debt divided by Adjusted EBITDA.
Operational performance measures
- Percentage women
- The average number of women as a percentage of the average total number of employees during the period, restated as full-time equivalents.
- Average number of employees
- Average number of employees during the period restated as full-time equivalents.
- Brokered capital
- Capital brokered by Tessin from investors to real estate developers.