Volvo 2015 Annual Report Download - page 202

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200
OTHER INFORMATION
DEFINITIONS
REPORTING SCOPE AND BOUNDARY
Basic earnings per share
Income for the period attributable to shareholders of the Parent Company
divided by the weighted average number of shares outstanding during the
period.
Capital expenditures
Capital expenditures include investments in property, plant and equipment,
intangible assets and assets under operating leases. Investments in fixed
assets included in the Group’s cash-flow statement include only capital
expenditures that have reduced the Group’s liquid funds during the year.
Cash-flow
Combined changes in the Group’s liquid funds during the fiscal year.
Changes in liquid funds are specified with reference to changes in opera-
tions, operating activities, changes depending on investments in equip-
ment, fixed assets etc. and financing activities such as changes in loans
and investments.
Diluted earnings per share
Diluted earnings per share is calculated as income for the period attribut-
able to the Parent Company’s shareholders divided by the average number
of shares outstanding plus the average number of shares that would be
issued as an effect of ongoing share-based incentive programs and
employee stock option programs.
EBITDA
EBITDA is the operating income before depreciation and amortization of
tangible and intangible assets. This key figure is calculated by adding
back depreciation and amortization on the operating income of the Indus-
trial operations.
Equity ratio
Shareholders’ equity divided by total assets.
Financial targets
Information on how the comparison with competitors is made is available
under the heading Investors on www.volvogroup.com.
For the reporting scope and boundary for non-financial data, please see
the supplementary GRI-report at www.volvogroup.com/responsibility
(available from mid-March 2016).
Gross margin
Gross income divided by net sales.
Interest coverage
Operating income plus interest income and similar credits divided by
interest expense and similar charges.
Joint ventures
Companies over which the Company has joint control together with one or
more external parties.
Net financial position
Cash and cash equivalents, marketable securities and interest- bearing
short- and long-term receivables reduced by short- and long-term interest-
bearing liabilities and provisions for post-employment benefits.
Operating margin
Operating income divided by net sales.
Penetration rate
Share of unit sales financed by Volvo Financial Services in relation to total
number units sold by the Volvo Group in markets where financial services
are offered.
Return on operating capital
Income for the period divided by average operating capital.
Return on shareholders’ equity
Income for the period divided by average shareholders’ equity.
Self-financing ratio
Cash-flow from operating activities (see Cash-flow statement) divided by
net investments in fixed assets and leasing assets as defined in the cash-
flow statement.