5.10 ALTERNATIVE PERFORMANCE MEASURES
The Group uses certain financial measures that are not defined in IFRS to describe the Group’s financial
performance, financial position and cash flows. These financial measures may therefore be defined and
calculated differently from similar measures in other companies, and thus not be comparable.
The performance measures set out below have been consistent over time and are some of the key indicators
used in management reporting to monitor business performance.
The non-IFRS financial measures presented in the Annual Report are:
EBITDA: Profit before interest, income tax, depreciation and amortisation
EBITA: Profit before interest, income tax and amortisation
Operating working capital
revenue %
=
Average operating working capital
Furthermore, a breakdown of operating working capital, net working capital and invested capital is
given in Note 3.1
x 100
Revenue from contracts with customers
Return on capital employed % =
Operating profit + amortisation of intangible assets
x 100
Average capital employed
Operating margin % =
Operating profit
x 100
Operating revenue
Return on equity % =
Total comprehensive income for the year
x 100
Average equity
Capital employed = Net working capital + invested capital
Jotun Group
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Jotun Annual Report 2021 I 49