Glossary & definitions
Here we have collected financial definitions and specific terms that can be useful to know.
Net turnover minus material costs and forward invoiced disbursements for outwork.
Added value ratio
Added value in relation to net turnover.
Average number of employees
The number of employees at the end of each month divided number of months.
Average number of shares
Weighted average number of shares outstanding during the period.
Total assets less liquid funds and non-interest bearing liabilities.
Capital turnover rate
Net sales in relation to average total assets.
Cash-flow per share
Cash-flow from operating activities divided by the average number of shares.
Net debt in relation to reported equity, including non-controlling interests.
Dividends in relation to average share price.
Earnings per share
Result for the year divided by the average number of shares.
Earnings before interest and taxes; operating result.
Earnings before interest, taxes and amortization; operating result plus amortization of assets identified in conjunction with acquisitions.
Earnings before interest, taxes, depreciation and amortization; operating result plus depreciation, amortization and write-downs of intangible assets and tangible fixed assets.
Market value plus net debt and non-controlling interests.
Equity per share
Equity divided by the number of outstanding shares at balance sheet date.
Equity, including non-controlling interests, in relation to total assets.
Interest coverage ratio
Operating result plus interest income divided by interest costs.
Interest bearing liabilities less liquid funds.
Operating cash flow
Cash flow from operating activities and investing activities, adjusted for paid taxes and financial items.
Operating cash flow per share
Operating cash flow divided by the average number of shares.
Operating result in relation to net sales.
Earnings before financial items; EBIT.
Share price at year-end in relation to earnings per share.
Result after financial items in relation to net turnover.
Proportion of risk capital
Risk capital in relation to total assets.
Share price at year-end in relation to net turnover per share.
Return on capital employed (ROCE)
Operating result in relation to average capital employed.
Return on equity
Result for the year in relation to average equity.
Return on total assets
Operating result plus financial income in relation to average total assets.
Equity plus deferred tax liabilities.
Volume on the stock market divided by the average number of shares.
Provision of services, support and spare parts after making an initial sale. This occurs for example in the provision of products which requires regular upgrades.
A block-chain is a growing list of records, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp and transaction data. By design, a blockchain is resistant to modification of the data. It is “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way”. By using block-chain technology the user can ascertain that the product is genuine, as the whole supply chain for the product can be verified.
Sale of goods and services between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.
Contract logistics is a business model within the framework of supply chain management, which is based on a long-term cooperation between a manufacturer or a dealer of goods and a logistics service provider. The model is normally regulated by a service contract, comprises a considerable business volume and is individually formed.
Unloading materials from incoming transports and loading these directly into outbound transports, with little or no storage in between. This may be done to change the type of package, to sort material intended for different destinations, or to combine material from different origins into transports with the same or similar destinations.
The transfer of information to paper via a digital file that is then printed out with the help of a high-speed printer. This technique is a prerequisite for print-on-demand and makes quick deliveries in small editions possible. Offset technique is still more efficient for larger editions.
Online sales, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.
An end-to-end solution refers to a comprehensive solution, where all the middle layers or steps are eliminated to optimize performance and efficiency in a process.
This term used to describe a number of steps in the process between production and distribution. They can include assembly, configuration, barcoding, packaging for end customers.
Delivery precision – delivery exactly when the need arises. The concept also entails that customers do not need to store their products.
Life Cycle Management
Services that are carried out during the whole or parts of a product’s life cycle, from when the product is manufactured to it is recycled. Examples of services are delivery, installation, training, maintenance, wiping of data, upgrade of software, refurbishment and reselling or recycling. The service aims to maximize the product’s life and optimize logistics flow in order to reduce the environmental impact.
A printing method in which ink and water are spread out on a printing plate that is then pressed against a rubber blanket. This absorbs the ink and transfers it to the paper. The expression offset comes from the fact that the printing plate never touches the paper.
An integrated way of thinking about people’s relationships with organizations. Rather than working in parallel, communication channels are designed to cooperate and build a coherent, evolving, cross-channel experience. The approach includes channels such as physical locations, FAQ web pages, social media, mobile applications and telephone communication. Companies that use omni-channels give their customers the ability to be in contact with them through multiple avenues at the same time.
Companies or organizations choose to let an external party handle an activity or a process. This activity or process is then said to be outsourced.
A product manufactured to protect, handle, deliver and present an item.
Normally, logistics deal with events that bring the product towards the customer. In the case of reverse logistics, the product goes back in the supply chain. For instance, goods move from the customer back to the distributor or to the manufacturer. The reverse logistics process includes the management of surplus equipment, returns as well as defective products including testing, dismantling, repairing, recycling or disposing the product.
The movement and storage of goods and or information from point of origin to end-users. Supply chain management can be defined as the design, planning, execution, control and monitoring of activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.
The process of maximizing the value of unused or end-of-life assets through effective reuse, recycling or divestment.