Key ratio Definition Reason for use
Acquired growth Change in net sales during the current period attributable to acquired units, excluding currency effects, in relation to net sales for the corresponding period of the preceding year. Net sales of acquired units are defined as acquired growth during a period of 12 months commencing the respective acquisition date. The measure is used as a complement to organic growth and provides an improved understanding for Karnov’s growth.
Adjusted EBITA EBITA adjusted for the impact of items affecting comparability. The measure shows the profitability from the business, adjusted for the impact of items affecting comparability and amortisation of capital expenditures related to acquisitions.
Adjusted EBITA margin Adjusted EBITA as a percentage of net sales. The measure shows the underlying profitability generated from the current operations over time, adjusted for items affecting comparability.
Adjusted EBITDA EBITDA excluding items affecting comparability. The measure is used since it facilitates the understanding of the operating profit, excluding items affecting comparability, financing and amortisation.
Adjusted EBITDA margin Adjusted EBITDA as a percentage of net sales. The measure is used since it facilitates the understanding of the operating profit, excluding items affecting comparability, financing, depreciation and amortisation.
Adjusted cash flow from operating activities Adjusted EBITDA plus changes in net working capital less capital expenditure related to new product development and enhancement of existing products and business systems. The measure is used to calculate one component in the cash conversion.
Average number of full-time
employees (FTEs)		 Average number of full-time employees during the reporting period. Non-financial key ratio.
Cash conversion (%) Adjusted cash flow from operating activities as a percentage of Adjusted EBITDA. The measure is used since it shows how efficiently adjusted cash flow from operating activities are translated into a concrete contribution to Karnov’s financing.
Earnings per share Earnings per share for the period in SEK attributable to the parent company’s shareholders, in relation to weighted average number of outstanding shares before and after dilution. IFRS key ratio.
EBITA Earnings before financial items and taxes, excluding acquisition related purchase price allocation (PPA) amortisation. The measure shows the profitability from the business, adjusted for acquisition related purchase price allocation (PPA) amortisation.
EBITA margin EBITA as a percentage of net sales. The measure shows the profitability over time for the underlying business (i.e., excluding PPA amortisation) in relation to net sales.
EBITDA Earnings before depreciation and amortisation, financial items, and taxes. The measure shows the operating profitability before depreciation and amortisation.
EBITDA margin EBITDA as a percentage of net sales. The measure shows operational profitability over time, regardless of financing, depreciation and amortisation.
Equity/asset ratio (%) Equity divided by total equity and liabilities. The measure can be used to assess Karnov’s financial stability.
Items affecting comparability Items affecting comparability includes items of a significant character that distort comparisons over time. The measure is used for understanding the financial performance over time.
Leverage ratio Net debt divided by Adjusted EBITDA. The measure shows whether Karnov has an appropriate financing structure and is able to fulfil its commitments under its financing agreements.
Net debt Total borrowings less cash and cash equivalents. The measure is used since it allows for an assessment of whether Karnov has an appropriate financing structure and is able to fulfil its commitments under its financing agreements.
Net sales (online) Net sales from online products. The measure is used since it facilitates the understanding of total net sales and the breakdown of net sales.
Net sales (offline) Net sales from printed products and training. The measure is used since it facilitates the understanding of total net sales and the breakdown of net sales.
Net working capital (NWC) Current assets less current liabilities. The measure shows the tie-up of short-term capital in the operations and facilitates the understanding of changes in the cash flow from operating activities.
Operating profit (EBIT) Profit for the year before financial items and taxes. The measure is used since it enables comparisons of the profitability regardless of the capital structure or tax situation.
Organic growth Change in net sales during the current period, excluding acquisitions and currency effects, in relation to net sales for the corresponding period of the preceding year. Acquisitions are included in organic net sales after a period of 12 months. The measure is used since it shows Karnov’s ability to generate growth through increases of, among other things, volume and price in its existing business.
Return on total capital Operating profit divided by total assets. The measure shows the operating return on capital that owners and lenders have invested.