Basic earnings per share (EPS) Net profit divided by the average number of shares outstanding.
Cash to earnings Free cash flow as a percentage of net profit.
Diluted earnings per share Net profit divided by the sum of the average number of shares outstanding, including the dilutive effect of share options ‘in the money’ in accordance with IAS 33. The dilutive effect of share options ‘in the money’ is calculated as the difference between the following: 1) the number of shares that could have been acquired at fair value with proceeds from the exercise of the share options; and 2) the number of shares that would have been issued assuming the exercise of the share options. The difference (the dilutive effect) is added to the denominator as an issue of shares for no consideration.
Effective tax rate Income taxes as a percentage of profit before income taxes.
Equity ratio Equity at year-end as a percentage of the sum of total liabilities and equity at year-end.
Free cash flow The sum of cash flow from operating activities and cash flow from investing activities excluding net changes in marketable securities.
Gross margin Gross profit as a percentage of sales.
Net profit margin Net profit as a percentage of sales.
Number of shares outstanding The number of shares outstanding is the total number of shares excluding the holding of treasury shares.
Operating profit Earnings before tax, financial items and share of profit/loss in associated companies.
Operating profit margin Operating profit as a percentage of sales.
Payout ratio Total dividends for the year as a percentage of net profit.
ROIC (return on invested capital) Operating profit after tax (using the effective rate) as a percentage of average inventories, receivables, property, plant and equipment as well as intangible assets less non-interest bearing liabilities including provisions (the sum of the above assets and liabilities at the beginning of the year and at year-end divided by two).
This page has been assessed by PricewaterhouseCoopers as part of its assessment of Novo Nordisk’s statement that it reports ‘in accordance’ with GRI. Please refer to Audit and assurance for a full description of the nature of assurance offered.
