Electrolux 2001 Annual Report Download - page 77

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ELECTROLUX ANNUAL REPORT 2001 73
Definitions
Capital indicators
Net assets
Total assets exclusive of liquid funds,
interest-bearing financial receivables, as
well as non-interesting-bearing liabilities
and provisions.
Adjusted equity
Equity, including minority interests.
Working capital
Net assets less fixed assets.
Net borrowings
Total interest-bearing liabilities less liquid
funds.
Net debt/equity ratio
Net borrowings in relation to adjusted
equity.
Net income per share
Net income per share
Net income divided by the average
number of shares after buy-backs.
Net income per share
according to US GAAP
See information on US GAAP in Note 27
on page 64.All computations have been
adjusted for full dilution, stock splits,
bonus issues and new issues. In connection
with new issues, the number of shares is
computed as the average number of shares
for the year.
Other key ratios
In computation of key ratios where capital
is related to net sales, the latter are annual-
ized and converted at year-end exchange
rates, so that due consideration is given to
changes in exchange rates and Group
structure.
EBITDA margin
Earnings before interest, tax, depreciation
and amortization expressed as a percentage
of net sales.
Operating margin
Operating income expressed as a percent-
age of net sales.
Value creation
Operating income excluding items affect-
ing comparability less the weighted aver-
age cost of capital (WACC) on average
net assets. [(Net sales – operating costs =
operating income) – (WACC x Average
net assets)].The WACC for 2001 was 14%
before tax.
Return on equity
Net income expressed as a percentage of
average equity.The latter is adjusted for
debentures converted during the year and
for new issues.
Return on net assets
Operating income expressed as a percent-
age of average net assets.
Interest coverage ratio
Operating income plus interest income in
relation to total interest expense.
Capital turnover rate
Net sales divided by average net assets.
Definitions