Financial key figures
Boliden presents certain financial metrics that are not defined in accordance with IFRS, and is of the opinion that these metrics provide valuable complementary information in that they enable a clearer evaluation of the company’s performance.
The following metrics are not defined in IFRS: Capital employed, Equity/asset ratio, Free cash flow, Net debt, Net debt/equity ratio, Net reclamation liability, Operating profit, Operating profit excluding revaluation of process inventory, Payment capacity, Return on capital employed, Return on equity. Definitions and explanations of these financial metrics are presented below. Calculations of these financial metrics are located under Financial reports.
Definition
Total assets less interest-bearing investments, tax receivable and non-interest-bearing provisions and liabilities.
Reason for use of the financial metric
The total amount of capital utilized to generate profits.
Definition
Equity as a percentage of the Total assets.
Reason for use of the financial metric
Measures the financial risk, which shows the company’s equity in relation to total capital.
Definition
Cash flow from operating activities including cash flow from investment activities.
Reason for use of the financial metric
Shows the company’s cash generation capacity after operational investing activities.
Definition
Interest-bearing current and non-current liabilities (including pension liabilities) less financial assets (including cash and cash equivalents).
Reason for use of the financial metric
Measures the company’s financial position.
Definition
Net debts divided by equity. Also called net gearing.
Reason for use of the financial metric
Measures the financial risk, which shows to what degree the operations are financed with debt rather than shareholder capital.
Definition
Reclamation liability less capitalized reclamation costs.
Reason for use of the financial metric
Measures the company’s financial position, only considering the reclamation liability.
Definition
Revenues less all costs attributable to the operations but excluding net financial items and tax.
Reason for use of the financial metric
Measures the result.
Definition
Revenues minus all costs attributable to the operations but excluding the effects of the revaluation of process inventory, net financial items and taxes.
Reason for use of the financial metric
Measures the result that gives a better picture of the underlying trend, as this is reported excluding revaluation of the smelter’s process inventory.
Definition
Cash and cash equivalents and unutilized binding credit facilities with a term of more than one year.
Reason for use of the financial metric
Shows the sources of cash available to the company.
Definition
Operating profit divided by the average capital employed. The average capital employed for each year consists of an average of the closing capital employed in the last 13 months. Measured before tax.
Reason for use of the financial metric
Measures the return on all the capital tied up in the operation.
Definition
Profit for the year as a percentage of average equity in the last 13 months. Measured after tax.
Reason for use of the financial metric
Shows the return that is generated on the shareholders’ capital that is invested in the company.