![MAG Annual Report 2019 [EN]](https://finance.mecaer.com/2019en/wp-content/uploads/sites/8/2020/06/Logo_up_big_2.png){kind=logo}
To provide a better understanding of the group’s performance in the year ended 30 September 2019, in addition to conventional measures presented in accordance with IFRS, this report provides certain performance indicators to supplement – and not replace – conventional measures.
The indicators occasionally used are detailed below.
PROFITABILITY INDICATORS
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation – from Continuing Operations) or gross operating profit (loss). The group uses this ratio as a target for internal management control and in presentations to analysts and investors. It serves as a unit of measure to evaluate operating performance.
Profit for the year
+ Current and deferred taxes
+ Financial expense/(financial income)
+ Non-recurring expense/(non-recurring income)
+ Amortisation, depreciation and accruals
+ Impairment losses/(reversals of impairment losses)
Adjusted EBITDA is net of non-recurring or exceptional items. Generally, it is the indicator that is most representative of gross operating profit or loss.
EBIT (Earnings Before Interest and Taxes – from Continuing Operations) or operating profit (loss).
Profit for the year
+ Current and deferred taxes
+ Financial expense/(financial income)
+ Non-recurring expense/(non-recurring income)
+ Impairment losses/(reversals of impairment losses)
Adjusted EBIT is net of non-recurring or exceptional items. Generally, it is the indicator that is most representative of operating profit or loss.
FINANCIAL INDICATORS
NET NON-CURRENT ASSETS. The difference between total non-current assets and other non-current liabilities under non-current liabilities.
NET CURRENT ASSETS. The difference between total current assets (net of financial assets) and total current liabilities (net of financial liabilities).
NET FINANCIAL DEBT (NET FINANCIAL POSITION).1 This indicator is used to indicate the group’s more general financial position.
Cash and cash equivalents (bank and postal accounts, cash and cash equivalents, cheques)
+ Securities in portfolio and cash (or equivalents)
+ Current financial assets
– Bonds
– Current and non-current bank loans and borrowings
– Other bank loans and borrowings and/or other loans that generate financial expense
– Lease liabilities recognised using the financial method (IAS 17).
DEBT TO EQUITY RATIO. This ratio, which shows the balance between borrowed and venture capital and the level of capitalisation, compares net financial debt to equity.
CURRENT RATIO. This is a liquidity ratio expressing the ratio of current assets to current liabilities.
ACID TEST RATIO. This ratio measures the group’s ability to repay current debt. It is the ratio of cash and cash equivalents plus current assets to current liabilities.
MIXED INDICATORSDEBT TO ADJUSTED EBITDA RATIO. The ratio, which is also frequently used the other way round, shows the group’s ability to repay its financial liabilities by using the adjusted gross operating profit.
See also the notes to the consolidated financial statements – see 9.1 NET FINANCIAL DEBT. ↩
