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Alternative performance measures

In addition to the key figures defined or specified in the applicable IFRS financial reporting framework, Apranga APB also provides key financial ratios derived from or based on the prepared financial statements. These are known as Alternative Performance Measures (APM).

Apranga APB considers these APM to be important supplemental information for investors and other consumers of the financial reports and other regulated information. Nevertheless, APM should be seen as an addition to and not a replacement of the information prepared in accordance with IFRS. APM should not be displayed with more prominence, emphasis or authority than measures directly stemming from financial statements.

With regard to the requirements of the European Securities and Markets Authority (ESMA) Guidelines on Alternative Performance Measures, Apranga APB provides an overview of the APM used, their definition and their compilation.

 

Performance measure Formula and components used for the calculationInterpretation
EBITDAProfit before interest, income tax, depreciation and amortizations
Alternative calculation:s
EBIT before depreciation and amortization
EBITDA is used as a relevant measure for investors to be able to understand profit generation before investments in fixed assets. It also shows the ability to repay loans and pay interests
EBITDA margin, %EBITDA divided by net salesShows the efficiency of the company and is used to compare companies in the same business sector
EBITProfit before interest and income taxA business performance indicator that shows the company's ability to make a profit, regardless of the method of financing (then determines the optimal use of debt vs. equity)
EBIT margin, %EBIT divided by net salesShows the efficiency of the company and is used to compare companies in the same business sector
Net investmentPurchases of long-term assets – Disposal of long-term assetsIn the activities of Apranga APB, part of the investment into installation of the store is often disposed to the owner of the premises. Therefore, to reflect the real impact on cash flows and operating costs (depreciation), it is appropriate to use the net investment measure
Net debtBorrowings - Cash and cash equivalents

(Non-current and current borrowings less cash and cash equivalent)
Shows the level of real debt to financial institutions
Net debt to equityNet debt / Equity (at the end of the reporting period)Shows the level of financial debts compared to equity. The ratio is used to evaluate a company's financial leverage. The debt/equity ratio is also referred to as a risk or gearing ratio. The higher the value of this ratio, the lower the solvency of the company
Earnings per share (EPS)Profit for the period / Number of sharesEarnings per share serve as an indicator of a company's profitability. It shows the portion of a company's profit allocated to each share of common stock
Price-to-Earnings ratio (P/E)Share price (at the end of the reporting period) / Earnings per share (EPS)The price-earnings ratio indicates the price investors pay for one euro of the company’s earnings. This ratio is very versatile and is suitable for comparing not only for companies of the same sector but also very different companies
Dividend payout ratio, %Dividend / Profit for the periodShows which the part of the company's profit is paid by dividends
Return on equity (ROE)Profit for the period / Equity (at the end of the reporting period)The ratio shows the percentage return the company earns from equity. Higher ROE ratio is considered as better
Return on assets (ROA)Profit for the period / Assets (at the end of the reporting period)The ratio shows the percentage return the company earns from assets. The higher the ratio, the more efficient use of assets
Current ratioCurrent Assets (at the end of the reporting period) / Current Liabilities (at the end of the reporting period)The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations

 

Reconsiliations of Apranga APB alternative performance measures