Key ratio definitions

Key ratioDefinitionPurpose
Absence due to illnessShort-term and long-term absence due to illness recalculated to full-time divided by the number of full-time employees (FTE).Absence due to illness is used to measure employee absence and provide indications of employee health.
Adjusted EBITOperating profit/loss excluding items affecting comparability.Adjusted EBIT is used to get a better picture of the underlying operating profit.
Adjusted EBIT marginAdjusted EBIT as a percentage of net revenues.Adjusted EBIT margin sets underlying operating profit in relation to sales.
Adjusted EBITDAOperating profit/loss before depreciation/amortization of property, plant and equipment and intangible non-current assets.Adjusted EBITDA is used to measure underlying profit from operating activities, regardless of depreciation/amortization and excluding items affecting comparability.
Adjusted net debtNet debt net of property-related loans, i.e. loans in the Norwegian State Housing Bank, building loans for ongoing construction projects and other property loans in Norway.Adjusted net debt shows the portion of loans that finance the business, while property loans are linked to a building asset that can be separated and sold.
Adjusted net debt/Adjusted EBITDAAdjusted net debt divided by adjusted EBITDA for the last 12 months.Net debt/adjusted EBITDA is a theoretical measure of how many years it would take, with current earnings excluding items affecting comparability (adjusted EBITDA), to pay off the Company's liabilities, excluding property-related loans.
Adjusted return on capital employed Adjusted EBIT + interest income for the most recent 12-month period divided by average capital employed (opening balance + closing balance)/2. Adjusted return on capital employed is used to set adjusted operating profit/loss in relation to total tied up capital regardless of type of financing.
Acquired growthIncrease of Net Sales due to larger acquisitions during the last 12 months.Indicates growth generated from acquisitions in contrast to organic growth and currency effects.
Capital employed Total assets less non-interest bearing liabilities and provisions as well as deferred tax liabilities. Or: Equity plus non-current and current interest-bearing liabilities. Capital employed indicates how much capital is needed to run the business regardless of type of financing (borrowed or equity).
Cash flow from investmentsCash flow from investing activities according to the cash flow analysis. This includes acquisitions, investments and divestments of buildings, as well as investments in property, plant and equipment and intangible assets. Investments financed with leases are not included.Cash flow from investments is used to regularly measure how much cash is used to maintain operations and for expansion.
Cash flow from operating activitiesCash flow from operating activities including changes in working capital and before cash flows from investing and financing activities.Cash flow from operating activities is used as a measure of the cash flow that the Company generates before investments and financing.
Depreciation related to acquisitionsDepreciation related to assets gained in acquisitionsSeparates depreciation on assets gained in acquisitions, e.g. excess value in real estate and brands
Earnings per shareProfit/loss for the period in SEK, divided by the average number of shares outstanding, basic/diluted calculated according to IAS 33. Earnings per share is used to clarify the amount of profit for the period to which each share is entitled.
EBITDA Operating profit/loss before depreciation/amortization and impairment of non-current assets. EBITDA is used to measure profit (loss) from operating activities, regardless of depreciation/amortization.
EBITDA marginEBITDA as a percentage of revenues.EBITDA margin is used to set EBITDA in relation to sales.
Employee turnover Average number of employees who left the company during the year in relation to the average number of employees. (Number of permanent and probationary employees who quit) / (Average number of permanent and probationary employees).Employee turnover is used to measure the proportion of employees who leave the company and who must be replaced every year.
Equity/assets ratio Equity as a percentage of total assets. The equity ratio shows the proportion of the Company's total assets financed by shareholders’ equity. A high equity ratio is a measure of financial strength.
Interest coverage ratio Adjusted EBIT for the last 12 months plus financial income in relation to interest expense.Interest coverage ratio is used to measure the company's ability to pay interest costs.
Net debt Interest-bearing debt (current and non-current) net of cash and cash equivalents and non-current interest-bearing receivables (current and non-current). Net debt is used to clarify the size of the debt less current cash and cash equivalents (which in theory could be used to repay loans).
Net debt/adjusted EBITDA Net debt (closing balance for the period) divided by adjusted EBITDA for the past 12 months. Net debt/adjusted EBITDA is a theoretical measure of how many years it would take, with current earnings (EBITDA), to pay off the Company's liabilities, including property-related loans.
Net marginProfit/loss for the period as a percentage of revenues.Net margin is used to measure net earnings in relation to sales.
Items affecting comparabilityItems affecting comparability is income and cost of irregular nature such as larger retroactive income related to prior financial years, items related to property such as capital gains, major property damage not covered by insurance, advisory costs relating to larger acquisitions or fundraising, major integration costs resulting from acquisitions or reorganizations according to plan, as well as costs arising from strategic decisions and major restructuring that result in winding up of units.Items affecting comparability are used to identify items of an irregular nature in order to get a better understanding of underlying development of earnings.
Number of children/studentsAverage number of children/students enrolled during the specified period. Adult education participants are not included in the Group's total figures for number of children/students.Number of children/students is the most important driver for revenue.
Number of education unitsRefers to the number of preschools, compulsory schools and/or upper secondary schools operating in the period. Integrated units where preschools and compulsory schools are combined are counted as two units as they each hold their own permit.Number of education units indicates how the Company grows over time through new establishments and acquisitions minus discontinued units.
Number of full-time employeesAverage number of employees during the period, full-time equivalent (FTE). The number of employees is measured regularly as it is the main cost driver for the Company.
Organic growth including smaller bolt-on acquisiionsIncrease of net sales excluding larger acquisitions and changes in currency.The Company’s growth target is to increase net sales including smaller bolt-on acquisitions by 5-7 percent per year. The purpose of the key ratio is thus to follow up on this target.
Return on equity Profit/loss for the most recent 12-month period divided by average equity (opening balance + closing balance)/2. Return on equity is a profitability measure used to set profit (loss) in relation to shareholders’ paid-in and earned capital.
Return on capital employed Adjusted operating profit/loss (EBIT for the most recent 12-month period plus interest income divided by average capital employed (opening balance + closing balance)/2. Return on equity is a profitability measure used to set profit (loss) in relation to the capital needed to run the business.
Operating margin (EBIT margin)Operating profit/loss as a percentage of revenues. The operating margin shows the percentage of sales remaining after operating expenses, which can be allocated to other purposes.
Operating profit/loss (EBIT)Operating profit/loss before net financial items and tax.Operating profit/loss (EBIT) is used to measure operating profit before financing and tax.