In BICO’s financial reporting alternative key ratios are stated, which supplement the measures defined or specified in the applicable rules for financial reporting. Some of these measures are defined in IFRS, while others are alternative measures and are not recognized in accordance with applicable financial reporting frameworks or other legislation. The alternative key ratios are derived from the company’s consolidated financial statements.
The measures are used by BICO to provide clearer or more in-depth information in their context than the measures defined in the applicable rules for financial reporting, and thus to help investors and management alike to analyze its operations. Calculations of non-IFRS performance measures that are mentioned in the financial reporting are presented below.
Alternative Key Ratios
| Alternative key ratio | Definition | Purpose |
| Equity ratio | Equity divided by total assets. | BICO considers that equity ratio is a useful measure for the company’s survival. |
| Gross profit | Net sales less total cost of goods sold. | Shows efficiency in BICO’s operations and together with EBITDA gives an overall picture of the ongoing profit generation and scalability of the business. |
| Gross margin | Gross profit as a percentage of net sales. | The ratio is used for analysis of the Company’s effectiveness and profitability. |
| Net debt (-)/Net cash (+) excl. leasing |
Short-term investments and cash and cash equivalents, reduced by interest-bearing long-term and short-term liabilities excluding leasing liabilities. Contingent considerations are not included in the net debt measure. A positive number indicates net cash. | BICO believes that net debt/net cash is a useful measure of the company’s survival and the ability to execute on an established business plan. |
| Adjusted EBITDA | EBITDA adjusted for income and costs affecting comparability. | The same definition as EBITDA, but with the addition of adjustment for income and costs affecting comparability, which improves the possibility of comparisons over time by excluding items with irregularity in frequency or size. |
| Adjusted EBITDA, % | Adjusted EBITDA as percentage of net sales. | BICO considers that adjusted EBITDA, % to be a useful measure for showing results generated in the operating activities. |
| Operating profit before depreciation, amortization and impairment (EBITDA) | Earnings before interest, tax, depreciation, amortization and impairment. | This alternative key ratio is a useful measure for demonstrating the result generated in day‑to‑day operations. As operating profit is burdened by amortization of surplus values linked to the acquisitions made by BICO, the Group’s management considers EBITDA a fair measure of the Group’s earning capacity. |
| Operating margin (EBITDA), % | EBITDA as a percentage of net sales. | BICO considers operating margin (EBITDA, %) to be a useful measure for showing the performance generated in operating activities. |
| EBITDA less own work capitalized | Earnings before interest, tax, depreciation, amortization and impairment reduced by own work capitalized. | The same definition as EBITDA, but reduced by own work capitalized. This metric eliminates the effect of accounting treatment of R&D expenses in EBITDA, bringing the measure closer to actual cashflow. |
| EBITDA less own work capitalized, % | EBITDA less own work capitalized as percentage of net sales. | BICO considers that EBITDA less own work capitalized, % is a useful measure for showing results and cashflow generated in operating activities. |
| Operating profit (EBIT) | Earnings before interest and similar items and tax. | BICO considers operating profit (EBIT) to be a useful measure for demonstrating the result generated in operating activities. |
| Operating margin (EBIT), % | EBIT as a percentage of net sales. | BICO considers that operating margin (EBIT, %) is a useful measure for showing the result generated in operating activities. |
| Organic sales growth | Growth generated from operations in companies that existed in the Group during the corresponding comparison period in constant currency. | Shows the growth in the existing business adjusted for acquisitions and divestments in the last 12 months in constant currency. |
