Definitions

The key figures presented below are central in order to understand and evaluate AddLifes business and financial position. The key figures are presented in the Multi-year overview and commented in the administration report. The key figures that are the financial targets are commented in the section "Financial targets".

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Return on equity
Profit/loss after tax attributable to shareholders, as a percentage of shareholders' proportion of average equity.
Return on equity measures from an ownership perspective the return that is given on the owners' invested capital.

	2023	2022
Profit/loss for the period	192	483
Average equity	5,117	4,627

Return on equity	192/5,117=4%	483/4,627=10%

Return on working capital (P/WC)
EBITA in relation to average working capital.
P/WC is used to analyse profitability and encourage high EBITA earnings and low working capital requirements.

	2023	2022
Operating profit before amortization of intangible assets EBITA, P	1,135	1,221
Average working capital, WC	2,290	2,008
P/WC	1,135/2,290=50%	1,221/2,008=61%

Return on capital employed
Profit after net financial items plus interest expenses plus/minus exchange rate fluctuations in percent of average capital employed.

	2023	2022
Profit/loss before taxes according to the income statement	339	602
Interest expenses note 12 (+)	276	112
Net exchange rate fluctuations, note 12	-32	88
Profit after net financial items plus exchange rate fluctuations	583	802

Capital employed yearly average	10,898	10,080

Return on capital employed	583/10,898=5%	802/10,080=8%

EBITDA
Operating profit before depreciation and amortization of intangible assets and property, plant and equipment.
EBITDA is used to analyse profitability generated by operational activities.

	2023	2022
Profit/loss according to the income statement	585	808
Depreciation property, plant and equipment according to Note 16 (+)	369	309
Amortisation intangible assets according to Note 15 (+)	550	413

Operating profit before depreciation and amortisation, EBITDA	1,504	1,530

EBITA
Operating profit before amortization of intangible assets.
EBITA is used to analyse profitability generated by operational activities.

	2023	2022
Profit/loss according to the income statement	585	808
Amortisation intangible assets according to Note 15 (+	550	413
Operating profit before amortization of intangible assets	1,135	1,221

EBITA margin
EBITA in percentage of net sales.
EBITA margin is used to analyse asset-creating generated from operational activities.

	2023	2022
Operating profit before amortization of intangible assets	1,135	1,221
Net sales according to the income statement	9,685	9,084

EBITA margin	1,135/9,685=11.7%	1,221/9,084=13.4%

Equity per share
Shareholders' proportion of equity divided by the number of shares outstanding at the end of the reporting period.

	2023	2022
Shareholders' proportion of equity according to the balance sheet	4,958	4,968
Number of shares outstanding at the end of the reporting period, 000	121,857	121,836

Equity per share	4,958/121,857=40.69	4,968/121,836=40.76

Cash flow per share
Cash flow from operating activities. divided by the average number of shares.

	2023	2022
Cash flow from operating activities	773	909
Average number of shares	121,856	121,779

Cash flow per share	773/121,856=6.35	909/121,779=7.46

Net debt/equity ratio
Financial net liabilities in relation to shareholders’ equity.
Net debt/equity ratio is used to analyse financial risk.

	2023	2022
Financial net liabilities	5,192	5,410
Equity according to balance sheet	4,960	4,971

Net debt/equity ratio	5,192/4,960=1.0	5,410/4,971=1.1

Earnings per share (EPS)
Shareholders' proportion of profit/loss for the year in relation to the average number of shares outstanding.

	2023	2022
Shareholders' proportion of profit for the year according to the income statement	190	480
Average number of shares	121,856	121,779

Earnings per share (EPS)	190/121,856=1.56	480/121,779=3.96

Profit growth EBITA
This year’s EBITA decreased by previous year’s EBITA divided by previous year’s EBITA.
Earnings growth EBITA is used to analyse asset-creating generated from operational activities.

	2023	2022
Operating profit before amortisation of intangible assets, EBITA (+)	1,135	1,221
Previous year’s operating profit before amortization of intangible assets, EBITA (-)	-1,221	-1,273
Earnings growth EBITA	-86	-52

Profit growth EBITA	-86/1,221=-7%	-52/1,273=-4%


Financial net liabilities
Interest-bearing liabilities and interest-bearing provisions less cash and cash equivalents.
Net debt is used to monitor debt development and analyse financial leverage and any necessary refinancing.

According to balance sheet	2023	2022
Non-current interest-bearing liabilities	2,886	2,969
Provisions for pensions	64	60
Interest-bearing provisions	110	134
Current interest-bearing liabilities	2,404	2,623
Interest-bearing liabilities and provisions.	5,464	5,786

Cash and equivalents (–)	-272	-376

Financial net liabilities	5,192	5,410

Financial net liabilities/EBlTDA
Financial net liabilities divided by EBITDA.
Financial net liabilities compared with EBITDA provides a key financial indicator for financial net liabilities in relation to cash-generated operating profit; i.e., an indication of the ability of the business to pay its debts. This measure is generally used by financial institutions as a measure of creditworthiness.

	2023	2022
Financial net liabilities	5,192	5,410
Operating profit before depreciation and amortisation, EBITDA	1,504	1,530

Financial net liabilities/EBlTDA	5,192/1,504=3.5	5,410/1,530=3.5

Interest coverage ratio
Operating profit before depreciation and amortisation(EBITDA) in relation to interest costs.

	2023	2022
EBITDA	1,504	1,530
Interest expenses	276	112

Interest coverage ratio	1,504/276=5	1,530/112=14

Working capital
Sum of inventories and accounts receivable, less accounts payable. Average working capital for the year is used to calculate return on working capital (P/WC).
Working capital is used to analyse how much working capital is tied up in the business.

	2023	2022
Inventories yearly average (+)	1,787	1,543
Accounts receivable yearly average (+)	1,434	1,321
Accounts payable yearly average (-)	-931	-856

Working capital, average (WC)	2,290	2,008

Operating margin
Operating profit/loss as a percentage of net sales.

	2023	2022
Profit/loss according to the income statement	585	808
Net sales according to the income statement	9,685	9,084

Operating margin	585/9,685=6.0%	808/9,084=8.9%


Equity ratio
Equity as a percentage of total assets
The equity ratio is used to analyse financial risk and shows how much of the assets are financed with equity.

	2023	2022
Equity according to balance sheet	4,960	4,971
Total assets according to balance sheet	12,745	13,057

Equity ratio	4,960/12,745=39%	4,971/13,057=38%

Debt/equity ratio
Interest-bearing liabilities and interest-bearing provisions in relation to equity.

According to balance sheet	2023	2022
Non-current interest-bearing liabilities	2,886	2,969
Provisions for pensions	64	60
Interest-bearing provisions	110	134
Current interest-bearing liabilities	2,403	2,622
Interest-bearing liabilities and provisions	5,463	5,785

Equity according to balance sheet	4,960	4,971

Debt/equity ratio	5,463/4,960=1.1	5,785/4,971=1.2

Capital employed
Total assets less non-interest-bearing liabilities and provisions

According to balance sheet	2023	2022
Deferred tax liabilities	415	459
Accounts payable	1,015	957
Tax liabilities	38	70
Other liabilities	299	268
Accrued expenses and deferred income	504	487
Provisions	46	52
Non-interest-bearing liabilities and provisions	2,317	2,293

Total assets according to balance sheet	12,745	13,057

Capital employed	12,745-2,317=10,428	13,057-2,293=10,764

Profit margin
Profit before taxes in percentage of net sales

	2023	2022
Profit/loss before taxes according to the income statement	339	602
Net sales according to the income statement	9,685	9,084

Profit margin	339/9,685=3.5%	602/9,084=6.6%

Latest updated: 3/8/2024 6:33:57 PM by Alexander Paziraei