HOTEL-RELATED KEY RATIOS
ARR (Average Room Rate)
The average room rate is the average room revenue per sold room.
FTE (Full Time Equivalent)
The number of full-time employees calculated as the total number of working hours for the period divided by the annual working time.
LFL refers to the hotels that were in operation during the entire period as well as during the corresponding period of the previous year (no new or exited hotels for the year is included).
Refers to sold rooms in relation to the number of available rooms. Expressed as a percentage.
RevPAR (Revenue Per Available Room)
Refers to the average room revenue per available room.
Refers to costs for contracted and newly opened hotels before opening day.
EQUITY-RELATED KEY RATIOS
Earnings per share
The profit/loss during the period related to the shareholders of the Parent Company, divided by the average number of shares.
Equity per share
Equity related to the shareholders of the Parent Company, divided by the number of shares outstanding at the end of the period.
FINANCIAL KEY RATIOS
Earnings before tax.
Earnings before interest and taxes.
ALTERNATIVE PERFORMANCE MEASURES
Definition: Earnings before interest, taxes, depreciation and amortization and rent.
Justification: Rental expenses is a considerable expense in Scandic’s income statement and therefore this ratio, that adjusts for rental expenses, provides an increased possibility to compare Scandic’s ongoing operations over time.
Definition: Earnings before pre-opening costs, items affecting comparability, interest, taxes, depreciation and amortization as well as adjusted for the effects of the finance lease.
Justification: Adjusted EBITDA is a ratio that is used to present the underlying operating result. The ratio is used by Scandic’s investors, analysts and management to evaluate Scandic’s ongoing operations.
Definition: Earnings before pre-opening costs, items affecting comparability and before depreciation and amortization, interest and taxes as well as adjusted for the effects of finance lease as percentage of net sales.
Justification: Adjusted EBITDA-margin shows the underlying margin before items affecting comparability and pre-opening costs, depreciation and amortization which increase the possibility to compare earnings in Scandic’s ongoing operations.
Definition: Earnings before interest, taxes, depreciation and amortization.
Justification: EBITDA is a ratio showing the value that the ongoing operations generates and is therefore of importance to Scandic’s investors, analysts and management.
Definition: EBITDA as a percentage of net sales.
Justification: The EBITDA-margin shows the margin generated by the ongoing operations and is therefore of importance when assessing the ongoing operations.
Definition: Earnings before pre-opening costs, items affecting comparability, interest and taxes as well as adjusted for the effects of finance lease.
Justification: Adjusted EBIT intends to increase understanding for the ongoing operations including depreciation, and provide the possibility to evaluate EBIT over time.
Definition: Earnings before pre-opening costs, items affecting comparability, interest and taxes, adjusted for the effects of finance lease as a percentage of net sales.
Justification: The ratio shows the underlying margin including depreciation, before pre-opening costs and items affecting comparability which provides a more comparable ratio over time compared to non-adjusted EBIT-margin.
Definition: Earnings before interest and taxes as a percentage of net sales.
Justification: The ratio shows earnings for the Group and is used by management.
Items affecting comparability
Definition: Items that are not directly related to the normal operations of the company, for example, costs for transactions, integration, restructuring and capital gain/loss from sale of operations.
Justification: In order to provide an opportunity to evaluate Scandic’s ongoing operations and profitability at a certain point in time, it is of value to present items that are assessed as non-recurring.
Interest-bearing net liabilities
Definition: Liabilities to credit institutions and commercial papers minus cash and cash equivalents.
Justification: Interest-bearing net liabilities is used to calculate the company’s indebtedness, which is one of Scandic’s financial targets. The definition chosen corresponds to the definition used for the calculation of indebtedness, according to Scandic’s loan agreements.
Working capital, net
Definition: Total current assets excluding derivative instruments and cash and cash equivalents minus total current liabilities , excluding derivative instruments, current portion of finance lease liabilities and commercial papers.
Justification: There is a need to optimize cash generation to create value for our shareholders. The management team is therefore focused on working capital and on reducing lead times between income generation and payments received.
Latest press releases
- April 14, 2021 08:30 CEST Scandic recruits new Chief HR Officer
- March 29, 2021 17:20 CEST Notice of the extraordinary general meeting of Scandic Hotels Group AB (publ)
- March 26, 2021 18:15 CET Scandic has successfully completed an offering of convertible bonds raising approximately SEK 1,609 million in gross proceeds
- March 26, 2021 07:30 CET Scandic announces an offering of convertible bonds with expected gross proceeds of SEK 1,600m and conditional extension of the existing SEK 6,650m credit facilities until 2023