Earnings per share
Profit/loss for the year attributable to equity holders of the Parent Company divided by the average number of shares outstanding during the year.
EBITDA
Operating profit less depreciation, amortization and impairments.
Equity ratio
Total equity in relation to total capital.
Funds from Operations (FFO)
EBITDA adjusted for non-cash items minus net interest minus current tax expense.
Interest Coverage Ratio
Interest-bearing current and non-current debts less cash and cash equivalents divided by EBITDA.
Items affecting comparability (IAC)
Items with a significant impact on the Group or business area results from gains and losses on business disposals, restructuring and impairments costs.
Leverage ratio (net debt / EBITDA)
Interest-bearing current and non-current debts less cash and cash equivalents divided by EBITDA.
Net debt
Interest-bearing current and non-current liabilities, including net pension liabilities and leases, less cash and cash equivalents.
Net debt to equity ratio
Interest-bearing current and non-current debts, including net pension liabilities, less cash and cash equivalents divided by total equity.
Order intake
Order intake for a period refers to the value of all orders received for immediate delivery and those orders for future delivery for which delivery dates and quantities have been confirmed. General sales agreements are included only when they have been finally agreed upon and confirmed. Service contracts are included in the order intake with the full binding contract amount upon signing.
Organic growth
Change in order intake and revenues after adjustments for exchange rate effects and structural changes such as divestments and acquisitions. Sandvik generates the majority of its revenues in currencies other than in the reporting currency (i.e. SEK, Swedish Krona). Organic growth is used to analyze the underlying sales performance in the Group.
Relative net working capital
Annual
Average working capital for the last four quarters, divided by revenues in the last twelve months.
Quarterly
Average working capital for the most recent quarter, divided by revenues in the most recent quarter adjusted to annual rate.
Return on capital employed (ROCE)
Earnings before interest and tax plus financial income, as a percentage of a four quarter average capital employed. Capital employed is defined as total capital less current non-interest-bearing debt.
Return on shareholders' equity
Annual
12 month rolling profit/loss as a percentage of the average shareholders' equity over the last four quarters.
Quarterly
Profit/loss in the most recent quarter adjusted to annual rate, as a percentage of the average shareholders' equity in the most recent quarter.
Return on total capital
Earnings before interest and tax plus financial income, as a percentage of a four quarter average total capital.
Working capital
Total of inventories, trade receivables, account payables and other current non-interest-bearing receivables and liabilities, excluding tax assets and liabilities and
provisions.
TRIFR
Total number of injuries per million worked hours.
LTIFR
Number of lost time injuries per million worked hours.
Direct CO2 emissions
Emission from combustion of fossil fuels in owned or controlled sources, for example vehicle fuels and fuel in furnaces. Also known as Scope 1 emission.
Indirect CO₂ emissions
Emission that occur from generation of purchased energy. For example emissions from use of purchased electricity. Also known as Scope 2 emission.
Waste to recovery
Waste disposed of by Sandvik that go to recovery operations for further use.
Waste to other disposal
Waste that cannot be recovered and disposed without recovery, for example to a landfill.