• Corporate Group

    Two or more legally independent companies (subsidiaries) with common management. The parent company owns at least 50 percent of the shares in the subsidiaries or controls at lease 50 percent of the votes at the annual shareholders meeting. According to the law, the parent company must issue a special consolidated financial statement in conjunction with its annual report.

  • Cost

    The value of used resources.

  • CTO

    Abbreviation for Capital Turn Over. See Capital Turnover Rate

  • Current Asset

    An asset that is not intended to be tied up over the long term (i.e., for more than one year). Examples are liquid assets, inventories, work in process, supplies, and short-term receivables.

  • Deferred Tax Liability

    The tax liability that remains unrealized in the untaxed reserves of a company.

  • Depreciation

    The amount allocated during the period to amortize the cost of acquiring a long-term assets over the useful life of the assets. To be clear, this is an accounting expense that does not demand cash.

  • Depreciation According to Plan

    Method for the calculation of the decrease in value of a fixed asset. The economic life time is established, and thereafter, a percentage depreciation of the acquisition value takes place each year

  • Dividend

    A portion of a company's accumulated profit paid to shareholders. How much is decided at the Shareholder's meeting.

  • Direct Cost

    A cost that can be assigned directly to a certain product, order, or cost unit in the account.

  • Discounting

    Calculation of the present value of future payments.

  • Distribution of Earnings

    Distribution of the company's accumulated profits to shareholders.

  • EBIT

    Abbreviation of Earnings Before Interests and Tax. Equal to Operating profit or Operating income.


    Abbreviation for Earnings Before Interests, Tax and Amortization. Used to show an operating profit excluding the costs related to amortization of goodwill. Commonly in use by companies that has a growth strategy with a clear focus on acquisitions that is generating substantial goodwill.


    Abbreviation for Earnings Before Interests, Tax, Depreciations and Amortization. A key figure showing cash flow from operations (only). Also see Cash flow

  • Economic Life

    The time period during which a particular facility is estimated to be economically profitable to operate. Used in working out depreciation according to plan and cost replacement depreciation.

  • Equity

    The accumulated value of the owner's investments in the company + accumulated profits (and losses) from previous years + this years net income - the dividends paid to owners.

  • Equity ratio

    A key figure showing the total Equity’s part of the total Balance sheet value, often expressed as a percentage.

  • Expenses

    Costs that are regarded in the company's accounts as indirect .

  • Extraordinary Revenues and Costs

    Revenues and costs that do not normally arise for the company. In order for a revenue or a cost to be regarded as extraordinary, it must not be related to the business itself and it must be of a one-time nature, and it must also be of a sufficiently large amount.

  • Financial Expenses

    This includes for example interest expenses of various types.