Financial glossary 

Cash earnings per share (CEPS)
Formula: (Profit for the period + Depreciation) / Average number of shares

Dividend yield
Shows the amount of dividend in proportion to a share's market price. The price used is usually the market price at the end of the period under review, for example the end of a financial year.
Formula: 100 x Dividend per share / Share price at the close of the period

Debt/equity ratio
Shows the amount of net debt in proportion to equity capital. Stora Enso's target is a debt/equity ratio at or below 0.8
Formula: Interest-bearing net liabilities / Equity

Dividend per share
Formula: Dividend for the period / Number of shares

Earnings per share (EPS)
Formula: Profit for the period / Average number of shares

Equity per share
Shows how much of a company's equity one share represents. If the market price is greater than the equity per share, the market believes that the company will generate extra value.
Formula: Equity / Number of shares at the close of the period

Equity ratio (%)
Shows the amount of equity in proportion to total assets. Formula: 100 x (Equity + minority interests) / Total assets

Interest-bearing net liabilities
Formula: Interest-bearing liabilities - Interest-bearing assets

Payout ratio (%)
Shows how much of a company's profit is distributed as dividend. Stora Enso's target is to distribute a third of profits as dividend over the business cycle.
Formula: 100 x Dividend per share / Earnings per share

P/E
Price/earnings ratio
Shows a share's market price in proportion to its earnings. Calculated by dividing the share price by the reported or forecast annual earnings per share. For an investor this means that, if the P/E ratio is 10, the price is equivalent to ten years' earnings. The figure illustrates expectations of future company growth. In comparisons, it is best used for companies operating in the same field.
Formula: Share price / Earnings per share

ROOC (%)
Return on Operating Capital
Shows how productively a company is using its operating capital. Stora Enso uses this formula for the product areas. Formula: 100 x Operating profit / Operating capital *1)*2)

ROCE (%)
Return on Capital Employed
Shows the same as ROOC, but with operating capital reduced by net tax liabilities. It is used as a corporate key figure in Stora Enso. The company's target for ROCE is 13% over the cycle.
Formula: 100 x Operating profit / Capital employed *1)*2)

ROE (%)
Return on Equity
Formula: 100 x (Profit before tax and minority items - Taxes) / (Equity + minority interests) *2)

*1) Capital employed = Operating capital - Net tax liabilities
*2) Average for the financial period