GF uses certain key figures to measure its financial performance that are not defined by Swiss GAAP FER. As these key figures are not defined by Swiss GAAP FER, comparability with similar figures presented by other companies might be limited. Explanations of these key figures and the reconciliation of certain key figures can be found here.
Order intake
"Order intake" refers to receiving or processing a customer's order. It must only be recognized if a binding order or order confirmation is received.
Orders on hand
"Orders on hand" at the end of the period equals orders on hand at the end of the previous period, plus the order intake of the reporting period minus gross sales of the reported period.
Sales growth
"Sales growth" refers to the growth in sales in comparison to the previous year period.
Organic growth
"Organic growth" refers to the growth in sales adjusted for the impacts from movements in foreign currencies as well as impacts from changes in the scope of consolidation compared to the previous year period.
Gross value added
"Gross value added" includes all operating income less cost of materials and products, changes in inventory, and operating expenses. As the subtotal “Gross value added” is an important key figure to GF, it is reported separately in the income statement.
Operating result (EBIT)
"Operating result (EBIT)" corresponds to earnings before interests and taxes.
EBIT margin
"EBIT margin" corresponds to the operating result (EBIT) divided by sales.
EBITDA
"EBITDA" corresponds to the operating result (EBIT) before depreciation on tangible fixed assets and amortization on intangible assets.
EBITDA margin
"EBITDA margin" corresponds to the EBITDA divided by sales.
EBITDA (comparable)
"EBITDA (comparable)" corresponds to the EBITDA without PPA effects on inventory and items affecting comparability out of the Uponor acqusition. It is defined as:
+/- EBITDA
+ PPA effects on inventory
+ items affecting comparability
EBIT (comparable)
"EBIT (comparable)" corresponds to the EBIT without PPA effects on inventory and items affecting comparability out of the Uponor acqusition. It is defined as:
+/- EBITDA
+ PPA effects on inventory
+ items affecting comparability
EBIT after taxes
"EBIT after taxes" corresponds to the operating result (EBIT) after current taxes. It is defined as:
+/- Operating result (EBIT)
- Current taxes
Free cash flow
"Free cash flow" consists of cash flow from operating activities together with cash flow from investing activities and is reported separately in the cash flow statement. It is defined as:
+/- Cash flow from operating activities
+/- Cash flow from investing activities
Annual Report
| Annual Report | |||
| Corporation | |||
| CHF million | 2020 | 2019 | 2018 |
| Cash flow from operating activities | 342 | 318 | 397 |
| Cash flow from investing activities | -118 | -186 | -404 |
| Free cash flow | 224 | 132 | -7 |
| Cash flow from acquisitions/divestments | -6 | -5 | -154 |
| Free cash flow before acquisitions/divestments | 230 | 137 | 147 |
Free cash flow before acquisitions/divestments
"Free cash flow before acquisition/divestments" excludes the cash effective movements arising from acquisitions/divestments. It is defined as:
+/- Free cash flow
+/- Cash flow from acquisitions/divestments
Net debt
"Net debt" describes the interest-bearing financial liabilities minus cash and cash equivalents and marketable securities. It is defined as:
+ Interest-bearing financial liabilities
- Cash and cash equivalents
- Marketable securities
Net Debt to EBITDA
"Net debt to EBITDA" ratio is a debt ratio that shows how many years it would take for GF to pay back its debt if "Net debt" and "EBITDA" are held constant. The ratio is defined as net debt divided by EBITDA.
Equity ratio
"Equity ratio" shows how much of the GF Corporation's assets are funded by equity. It is defined as equity in relation to liabilities and equity.
Return on equity (ROE)
"Return on equity" represents the profitability on shareholders' equity. It is defined as: net profit in relation to average shareholders' equity incl. minority interests.
Capital expenditures (CapEx)
"Capital expenditures" measures the addition in property, plant, and equipment.
Net working capital (NWC)
"Net working capital" is the difference between current assets and current liabilities. It is defined as:
+ Inventories
+ Trade accounts receivable
+ Prepayments to creditors
- Trade accounts payable
- Prepayments from customers
Invested capital (IC)
"Invested Capital (IC)" is an indicator that measures total capital invested by shareholders, lenders and any other financing sources. It is defined as:
+/- Net working capital
+ Income taxes receivable
+ Other accounts receivable
+ Accrued income
+ Property, plant, and equipment
+ Intangible assets
- Provisions
- Current tax liabilities
- Accrued liabilities and deferred income
- Employee benefit obligations
- Other liabilities
Return on invested capital (ROIC)
"Return on invested capital" measures the Corporation’s ability to efficiently use invested capital. It is defined as: EBIT after taxes divided by average invested capital multiplied by 100. The average invested capital is calculated by adding the invested capital at the beginning of the period to that at the end of the period and dividing the sum by two.
Asset turnover
"Asset turnover" shows how frequently invested capital is turned over during the period under review. It is defined as: sales in relation to average invested capital.
Research and development (R&D)
"Research and Development" refers to innovative activities in developing new services or products, or improving existing services or products.