Annual Report 2019

Calculations of financial ratios
Return on investment (ROI)
Profit before taxes + interest and other financial expenses		x 100
Total equity and liabilities – non-interest-bearing liabilities – provisions, average over the financial period
Return on equity (ROE)
Profit for the financial period		x 100
Equity, average over the financial period
Gross capital expenditure
Investments in securities and acquisitions + investments in intangible assets and property, plant and equipment
Net interest-bearing debt
Total of non-current and current interest-bearing debt + total of non-current and current lease liabilities – interest-bearing receivables – cash and cash equivalents
Interest coverage
Profit before taxes + depreciation, amortisation and impairment + interest and other financial expenses
Interest and other financial expenses
Solvency ratio
Equity		x 100
Total equity and liabilities – advances received
Gearing
Interest-bearing liabilities – cash and cash equivalents
Equity
Earnings per share (EPS), basic and diluted
Profit for the financial period attributable to equity holders of the parent company
Adjusted number of shares, average over the financial period
Equity per share
Equity attributable to equity holders of the parent company
Adjusted number of shares at the end of the financial period
Dividend per share
Dividends paid for the financial period
Adjusted number of shares at the end of the financial period
Dividend per earnings
Dividend per share		x 100
Earnings per share (EPS), basic and diluted
Effective dividend yield
Dividend per share		x 100
Adjusted share price at the end of the financial period
Price/earnings (P/E)
Adjusted share price at the end of the financial period
Earnings per share (EPS), basic and diluted
Price/carrying amount per share (P/BV)
Adjusted share price at the end of the financial period
Equity per share
Working capital (WCAP)
(Inventories + trade receivables + current tax receivables + other non-interest-bearing receivables) – (trade payables + advances received + pension obligations + provisions + current tax liabilities + other non-interest-bearing liabilities – dividend payable)
Order book
The presentation in value of orders that are placed by customers but not yet delivered. For service agreements, only the expected net sales for the next 24 months are included in the order book.
Order intake
Total amount of orders received during the financial period to be delivered either during the current financial period or thereafter.
Operating result
Net sales + other operating income – expenses – depreciation, amortisation and impairment +/– share of result of associates and joint ventures
Comparable adjusted EBITA
Operating result – items affecting comparability – purchase price allocation amortisation
Comparable operating result
Operating result – items affecting comparability
Items affecting comparability
Certain income and expenses are presented as items affecting comparability when they have significant impact on the consolidated statement of income. Items affecting comparability consist of income and expenses, which result from restructuring activities aiming to adjust the capacity of Wärtsilä’s operations. They may also include other income and expenses incurred outside Wärtsilä’s normal course of business, such as impairment charges, acquisition related costs, settlements recorded as a result of legal proceedings with third parties or unforeseen obligations from earlier discontinued businesses.