Financial Definitions

See our list of financial definitions below to gain a better understanding of Hexagon’s financial reports and statements.


Annual net sales growth – Percentage change in net sales on previous year.

Bridge loan – A short-term loan that is used to secure financing until more permanent financing can be obtained by way of, for example, a bond issue.

Capital employed – Total assets less non-interest bearing liabilities.

Capital turnover rate – Net sales for the year divided by average capital employed.

Cash flow – Cash flow from operating activities after change in working capital.

Cash flow per share – Cash flow from operating activities after change in working capital divided by average number of shares.

Dividend pay-out ratio – Dividend per share divided by earnings per share.

Dividend yield – Dividend per share as a percentage of share price.

Earnings per share – Net earnings, excluding minority interests, divided by average number of shares.

Earnings per share excluding goodwill – Net earnings, excluding minority interests and goodwill amortisation, divided by average number of shares.

Equity ratio – Shareholders’ equity including minority interests as a percentage of total assets.

Interest coverage ratio – Earnings after financial items plus financial expenses divided by financial expenses.

Investments – Purchases less sales of tangible and intangible fixed assets excluding those included in acquisitions and divestitures of subsidiaries.

Non-recurring items – Income and expenses that are not expected to appear on a regular basis.

Operating cash flow – Cash flow from operations, after change in working capital and ordinary investing activities.

Operating earnings (EBIT1) – Operating earnings excluding non-recurring items.

Operating earnings (EBITA) – Operating earnings excluding non-recurring items and amortisation of goodwill.

Operating earnings (EBITDA) – Operating earnings excluding non-recurring items and amortisation and depreciation of fixed assets.

Operating margin – Operating earnings (EBIT1) as a percentage of net sales for the year.

Operating net sales – Net sales reduced by the difference between fair value and book-value of deferred revenue regarding acquired businesses.

P/E ratio – Share price divided by earnings per share.

Return on capital employed – Twelve months to end of period earnings after financial items, excluding non-recurring items, plus financial expenses as a percentage of twelve months to end of period average capital employed.

Return on capital employed excluding goodwill amortisation – Twelve months to end of period earnings after financial items, excluding non-recurring items, plus financial expenses and goodwill amortisation as a percentage of twelve months to end of period average capital employed.

Return on equity – Twelve months to end of period net earnings excluding minority interests as a percentage of twelve months to end of period average shareholders’ equity excluding minority interests.

Return on equity excluding goodwill amortisation – Twelve months to end of period net earnings excluding minority interests and goodwill amortisation as a percentage of twelve months to end of period average shareholders’ equity excluding minority interests.

Revolving credit facility – A loan facility where the borrower may increase and reduce the size of outstanding debt up to the available commitment during the term of the loan.

Shareholders’ equity per share – Shareholders’ equity excluding minority interests divided by the number of shares at year-end.

Share of risk-bearing capital – The total of shareholders’ equity including minority interests and tax provisions as a percentage of total assets.

Share price – Last settled transaction on the NASDAQ OMX Stockholm on the last business day for the year.

Term loan – A fixed amount loan with a maturity date of more than one year and with a specified amortisation schedule where the borrower is not entitled to re-borrow any amount which it has already repaid.

WACC – Weighted average cost of capital.

In cooperation with