Alternative Performance Measures of the Fabasoft Group
Within the scope of its periodical and obligatory reporting Fabasoft publishes alternative performance measures (APM). These performance measures are not defined in the existing accounting policy pursuant to the International Financial Reporting Standards (IFRS). Fabasoft calculates the APM with the aim of enabling comparability of the performance measures over time or a sectorial comparison. Fabasoft calculates the following APM:
- Nominal change in sales revenue
- EBIT or operating result
- Equity ratio
- Research ratio
Nominal change in sales revenue
The nominal change in sales revenue is a relative indicator. It indicates the change in the sales revenues in percent compared to the previous year.
EBIT (Earnings Before Interest and Taxes) or operating result
EBIT stands for Earnings Before Interest and Taxes and shows the operative result of a company without the impact of effects arising from inconsistent taxation systems and different financing activities. EBIT (operating result) is calculated as follows:
|Reconciliation of EBIT (operating result)|
Result before income taxes
- Finance income
+ Finance expenses
|= EBIT (operating result)|
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)
EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization. In addition to interest and taxes this indicator of success also neutralises the distortionary effects of operative business activities arising from different depreciation methods and valuation latitude. EBITDA is calculated on the same basis as EBIT plus depreciation and amortisation affecting income in the period or less reversals of impairment losses on intangible assets or property, plant and equipment.
|Reconciliation of EBITDA|
+ / – depreciation / amortisation / reversals of impairment losses on intangible assets or property, plant and equipment
The equity ratio indicates the proportion of equity in total capital.
Research & development ratio
Indicator that sets expenses for research and development in relation to the revenue.