A ratio that indicates the extent to which shareholders’ equity covers non-current assets.
A ratio that indicates the relative weight of noncurrent assets in total assets. High asset intensity means high fixed costs and high levels of capital tied up.
This is the capital used within the enterprise that is not subject to interest payable to external creditors. It is calculated by deducting liabilities from total non-current and current assets. However, all interest-bearing items are excluded.
Days sales outstanding
This ratio indicates the average length of time in days that capital is tied up in receivables.
The same method can be used to calculate the average length of time that capital is tied up in inventories and in net working capital.
Earnings before interest and taxes
EBIT before extraordinary effects
EBIT before extraordinary effects provides a better indication of the company’s operating profit. Typical extraordinary effects include income/losses from the disposal of sales, closure costs or purchase price allocation effects from business combinations.
Earnings before interest, taxes, depreciation and amortization
Equity assets ratio
A ratio that indicates the extent to which shareholders’ equity and non-current liabilities cover non-current assets.
Free cash flow
Free cash flow is the cash flow from operating activities remaining after deducting capital expenditures and net interest paid and received, and represents the amount of cash that is freely available to pay a dividend and to pay off debt.
This is the ratio of net financial debt to shareholders’ equity and net financial debt. The higher the relative weight of net financial debt, the higher the reliance on external lenders. However, a high gearing is not necessarily negative if the interest paid does not reduce profits excessively.
Gross profit equals sales revenues net of direct production costs. It does not include administration, sales, research and development costs or other operating income and expenses.
An interest coverage ratio of <1 indicates that the company is not able to meet its interest payments from operating earnings.
Liquidity ratios: cash ratio and quick ratio
These two liquidity ratios show the degree to which current liabilities are covered by cash and cash equivalents (and other current assets). They serve to measure a company’s solvency.
Net financial status
This represents the balance of the financial liabilities (without financial leases) reported in the balance sheet after deducting liquid funds. If a company’s liquid funds exceed its financial liabilities, it is de facto debt free.
Net Working Capital (NWC)
NWC refers to the capital required by the company to execute its operating business.
Order intake refers to the sum total of all orders received in the reporting period. It provides an indication of future trends in the company’s sales revenues.
Return on Capital Employed (ROCE)
This measures the rate of return on the capital tied up in a company’s operating assets (for instance in machinery and equipment, inventories, accounts receivable) and is the ratio of earnings before interest and taxes (EBIT) to capital employed.
Return on Equity (ROE)
This is the rate of return earned on shareholders’ equity. It should exceed the rate of return on a comparable investment.
Return on Investment (ROI)
This ratio serves to measure how efficiently a company employs the total resources at its disposal.
This publication has been prepared independently by Dürr AG/Dürr group (“Dürr”). It may contain statements which address such key issues as strategy, future financial results, events, competitive positions and product developments. Such forward-looking statements are subject to a number of risks, uncertainties and other factors, including, but not limited to those described in Dürr's disclosures, in particular in the chapter “Risks” in Dürr's annual report. Should one or more of these risks, uncertainties and other factors materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performances or achievements of Dürr may vary materially from those described in the relevant forward-looking statements. These statements may be identified by words such as “expect,” “want,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. Dürr neither intends, nor assumes any obligation, to update or revise its forward-looking statements regularly in light of developments which differ from those anticipated. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies.
Our financial reports, presentations, press releases and ad-hoc releases may include alternative financial metrics. These metrics are not defined in the IFRS (International Financial Reporting Standards). Dürr's net assets, financial position and results of operations should not be assessed solely on the basis of these alternative financial metrics. Under no circumstances do they replace the performance indicators presented in the consolidated financial statements and calculated in accordance with the IFRS. The calculation of alternative financial metrics may vary from company to company despite the use of the same terminology.