AAK Annual Report 2018

123 Financial definitions Capital turnover rate Net sales divided by average operating capital. Cash and cash equivalents Cash and bank balances plus short-term investments with a maturity of less than three months. Direct yield Dividend per share as a percentage of the share price. Dividend pay-out ratio Dividend per share as a percentage of earnings per share. Earnings per share Profit/loss for the year divided by the average number of shares on the balance sheet date. Equity/assets ratio Equity including non-controlling interests as a percentage of balance sheet total. Equity per share Equity divided by average number of shares at the balance sheet date. Gross contribution Operating income minus cost of goods. Interest coverage ratio Operating profit/loss plus financial income divided by financial expenses. Net borrowings The total of interest-bearing liabilities minus interest-bearing assets. Net debt/equity ratio Net borrowings divided by equity including non-controlling interests. Operating capital Total assets minus cash and cash equivalents, interest-bearing receivables and non-interest-bearing operating liabilities, but excluding deferred tax. Organic volume growth Total volume growth, excluding effects of acquisitions/ disposals. P/E ratio Share price divided by earnings per share. Proportion of risk-bearing capital Equity, non-controlling share of equity and deferred tax liability divided by balance sheet total. Return on operating capital Operating profit divided by average operating capital. Return on shareholders’ equity Profit/loss for the year as a percentage of average shareholders’ equity. Share price/Equity Share price divided by equity per share. Working capital Non-interest-bearing current assets minus non- interest-bearing liabilities excluding deferred tax.