Annual Report 2010 - Falck

Definitions of ratios
The ratios are basically calculated on the basis of the annual report
and the Group’s accounting policies. The Falck Group calculates
a number of ratios on the basis the financial-highlight figures
in “Financial highlights and key ratios” on page 6. The definitions
of those ratios are stated below.
Organic growth
Growth in external revenue relative to the preceding year measured
in local currency and adjusted for revenue from acquisitions
and divestments of subsidiaries, as they are not recognised until
after 12 months. Substantial contracts won after the acquisition
of small companies are included in organic growth.
EBITA margin
Operating profit before costs and amortisation from business
combinations and exceptional items (EBITA) as a percentage of
revenue.
Effective tax rate
Tax charged in respect of the financial year as a percentage of
profit before tax.
Net capital investments
Investments in land and buildings, operating equipment and
intangible assets less land and buildings, operating equipment
and intangible assets sold.
Equity ratio
Total equity at year-end as a percentage of equity and liabilities at
year-end.
Return on equity
Profit for the year attributable to Falck as a percentage of average
equity excluding minority interests.
Net operating assets
Net operating assets excluding goodwill defined as trade receivables
and other current operating assets plus property, plant and
equipment and intangible assets (excluding goodwill), less trade
payables, other payables and other operating liabilities.
Group | Falck Annual Report 2010 119
Net interest-bearing debt to EBITDA
Net interest-bearing debt and purchase consideration payable
divided by EBITDA. EBITDA has been normalised for the fully-year
effect of acquisitions made during the period.
Free cash flow
Operating profit before costs and amortisation from business
combinations and exceptional items (EBITA) adjusted for non-cash
operating items and change in net operating assets.
Cash conversion rate
Free cash flow as a percentage of operating profit before costs
and amortisation from business combinations and exceptional
items (EBITA). The rate of operating profit before costs and
amortisation from business combinations and exceptional items
(EBITA) to the free cash flow (cash conversion rate) shows the
Group’s ability to generate cash flows from operating activities
after investments in intangible assets and property, plant and
equipment and cash that must be tied up in working capital in
order to generate cash.
Earnings per share (EPS)
Earnings attributable to the parent company’s shareholders per
average number of outstanding shares.
Diluted earnings per share (DEPS)
Diluted earnings attributable to the parent company’s shareholders
per diluted average number of outstanding shares.
Normalised profit after tax
Profit for the year less costs and amortisation from business combinations
and exceptional items and tax thereon.