DEFINITIONS

 

Median – the middle item in the rank-ordered list of numbers, in this case the item in the middle of a list of ratios arranged in ascending order. One half of these values is less than or equal to the median and other half includes values greater than or equal to the median.

If there is an odd number of items, the median is the value of the middle item and there is an even number of items, the median is the average value of the two middle items. For each different ratio the values of a respective indicator of enterprises are arranged in ascending order. This means that, for example, if the value of a specified indicator of some  enterprise is considered median of the return of equity ratio, then the median of some other ratio should not necessaryly be the ratio of the same enterprise (although it can be).

 

Quartiles – similarly with median the middle items of specified parts in the rank-ordered list. There are three quartiles and they divide the data set into four parts, with each part containing an equal number of items.

 

1st quartile – 25% of all the values in the list are less than this value.

 

2nd quartile – equal to the median.

 

3rd quartile – 75% of all the values in the list are less than this value.

 

For example, if there are 13 enterprises operating in a specified field of activity,
            the median is the ratio of the 7th enterprise,
            1st quartile is the ratio of the 4th enterprise,
            3rd quartile is the ratio of the 10th enterprise.

 

 

METHODOLOGY

 

FINANCIAL KEY RATIOS

 

1. General ratios

 

No

Ratio

Formula

1.04

Average monthly wages and salaries (thousand kroons)

wages and salaries / 12

—–————

average number of employees

1.05

Turnover per persons employed (thousand kroons)

turnover

——————————

average number of persons employed

1.06

Capital per persons employed (thousand kroons)

average equity and debts

——————————

average number of persons employed

1.07

Exports to turnover

exports

————— x 100

turnover

1.08

Imports to purchases and investments

imports

––––––––––––––––––– x 100

purchases and investments

1.09

Average rate of depreciation (%)

depreciation

——————————————— x 100

average tangible assets (at original cost)

1.10

Inflow/outflow from operating activities (thousand kroons)

Operating profit + adjustment of operating profit to profit (-) / loss (+) from sale of tangible assets, from revaluation of investment properties in fair value + depreciation + change in payables and receivables + change in stocks, change in biological (consumable) assets and fixed assets held for sale

1.11

Inflow/outflow from investing activities (thousand kroons)

Investments in financial assets + investments in tangible assets + investment in biological (productive) assets + investment in real estate – depreciation + profit (loss) from sale of  fixed assets, from revaluation of investment properties in fair value + investments in intangible assets

1.12

Inflow/outflow from financing activities (thousand kroons)

Change in  capital stock + change in donated capital + change in reserves + other changes in equity + change in current debt obligations + change in long-term liabilities

 

2. Profitability

 

No

Ratio

Formula

2.01

Return on equity (%)

 

net profit

—–——————— x 100

average equity

2.02

Return on assets (%)

 

net profit

——–———— x 100

average assets

2.03

Return on capital (%)

 

earnings before interest and taxes

——–———–————–—————— x 100

   average equity and debts

2.04

Operating margin (%)

 

operating profit

—–————–——— x 100

turnover

2.05

Profit margin (%)

 

net profit

—————————— x 100

turnover

 

3. Income statement ratios

 

No

Ratio

Formula

3.01

Depreciation to turnover (%)

 

depreciation

—–—————–——— x 100

turnover

3.02

R&D expenditure to turnover (%)

 

R&D expenditure

—–———————— x 100

turnover

3.03

Personnel costs to turnover (%)

 

personnel costs

—————————————

turnover

3.04

Financial margin (%)

 

financial income – financial expenses

—————————–––––––––––––––

turnover

3.05

Profit from normal operations to turnover (%)

 

profit from normal operations

—————————–––

turnover

3.06

Margin before taxes  and interest (%)

 

earnings before taxes and interest

————————————————— x 100

turnover

3.07

Average income tax rate (%)

 

income tax

———————————— x 100

earnings before taxes

 

4. Efficiency

 

No

Ratio

Formula

4.01

Assets turnover (times)

turnover

——————————

average assets

 

4.02

Inventory turnover(times)

turnover

——————————

average ( inventories + fixed assets held for sale)

4.03

Receivables turnover (times)

 

turnover

—————————————————

average receivables

4.04

Capital turnover (times)

 

turnover

—————————–––

  average capital

4.05

Working capital turnover (times)

 

turnover

—————————–––

  average working capital

4.06

Cash turnover (times)

 

turnover

——————————

average cash and equivalents

4.07

Tangible assets turnover (times)

 

turnover

———————————————————

average ( tangible assets (original cost less depreciation) + investment properties + biological (productive) assets

4.08

Days’ sales in receivables (days)

 

receivables

————————————

turnover  / 360

4.09

Days’ sales in inventory (days)

inventory

———————————————

   material costs / 360

4.10

Days’ sales in inventory by sales (days)

inventory

———————————————

   turnover / 360

4.11

Operating cycle days)

 

days’ sales in receivables +

days’ sales in inventory

4.12

Days’ sales in customer prepayment by sales (days)

customer prepayments

————————————

turnover / 360

4.13

Days’ sales in payables (days)

 

suppliers payables

—————————————————

material costs / 360

4.14

Cash cycle (days)

 

operating cycle — days’ sales in customer prepayment by sales (days) — days’ sales in payables

4.15

Working capital requirement to turnover (%)

working capital requirement

————————————————— x 100

turnover

 

5. Liquidity, financial leverage, structure of balance sheet

 

No

Ratio

Formula

5.01

Current ratio (times)

 

current assets

—————————

current liabilities

5.02

Quick ratio (times)

current assets - inventory - biological (consumable) assets - fixes assets held for sale

—————————————————— current liabilities

5.03

Interest coverage ratio (times)

 

earnings before taxes and interest

——————————————————

interest expenses

5.04

Equity multiplier (time))

 

average assets

—————————

average equity

5.05

Equity to assets (times)

 

equity

——————————

assets

5.06

Debt to equity(time)

 

average total debt

—————————————

average equity

5.07

Net working capital to assets (%)

 

net working capital

————————————————— x 100

assets

 

6. Cash flow and complex ratios

 

No

  Ratio

Formula

6.01

Debt service coverage ratio (times)

 

 

operating profit + profit/loss from sale of tangible assets + depreciation

—————————————————

interest expenses – changes in loans

6.02

Operating cash coverage ratio

 

inflow/outflow from operating activities

—————————————————

interest expenses – changes in loans

6.03

Inflow from operations ratio

 

inflow/outflow from operating activities

—————————————————

current liabilities

6.04

Fixed assets substitution multiplier

investments in fixed assets

—————————————————

depreciation

6.05

Investments coverage ratio

 

operating profit – profit/loss from the sale of tangible assets + depreciation

—————————————————

investments in fixed assets

6.06

Sustainable growth rate

 

return on equity x (1-dividend payout ratio)

 

6.07

Average interest rate (%)

 

interest expenses

—————————————————–––

average total debt

 

7. Dividends and growth rates

 

No

Ratio

Formula

7.01

Dividend payout ratio (%)

 

dividends

——————————— x 100

net profit from previous year

7.02

Growth rate of turnover (%)

 

change in turnover

————————————————— x 100

turnover from previous year

7.03

Growth rate of assets (%)

 

change in assets

———————————————— x 100

assets in the beginning of the year

7.04

Growth rate of tangible assets

(%, original cost less depreciation)

Change ( in tangible assets + investment properties + biological (productive) assets)

————————————————— x 100

(tangible assets +  investment properties + biological (productive) assets)  in the beginning of the year

7.05

Growth rate of tangible assets

(%, original cost )

 

change (in tangible assets (original cost) + investment properties + biological (productive) assets)

————————————————— x 100

tangible assets + investment properties + biological (productive) assets) in the beginning of the year (original cost)

7.06

Growth rate of equity (%)

 

change in equity

——————————————— x 100

equity in the beginning of the year

7.07

Growth rate of working capital (%)

 

change in working capital

————————————————— x 100

working capital in the beginning of the year

 

8. Structure of balance sheet (% from assets)

 

No

Ratio

Formula

8.01

Cash / assets (%)

 

cash and equivalents

————————————— x 100

assets at the end of the year

8.02

Receivables / assets (%)

 

short-term receivables

————————————— x 100

assets at the end of the year

8.03

Inventories / assets (%)

 

inventories

————————————— x 100

assets at the end of the year

8.04

Long-term financial assets / assets (%)

 

long-term financial assets

————————————— x 100

assets at the end of the year

8.05

Tangible assets/ assets (%)

 

tangible assets + investment properties + biological (productive) assets)

————————————————— x 100

assets at the end of the year

8.06

Intangible assets / assets (%)

 

intangible assets

————————————— x 100

assets at the end of the year

8.07

Debt / assets (%)

 

debt obligations

————————————— x 100

assets at the end of the year

8.08

Current liabilities- debt obligations  / assets (%)

 

current liabilities- debt obligations

————————————— x 100

assets at the end of the year

8.09

Long-term liabilities / assets (%)

 

long-term liabilities

————————————— x 100

assets at the end of the year

 

8.10

Equity / assets (%)

 

equity

————————————— x 100

assets at the end of the year

 

 

 

CLASSIFICATIONS

 

Estonian Classification of Economic Activities (EMTAK 2003) based on NACE Rev.1.1

 

A 01

Agriculture, hunting and related service activities

A 02

Forestry, logging and related service activities

B 05

Fishing,  fish farming and related service activities

C

Mining and quarrying

D

Manufacturing

DA15

Manufacture of food products and beverages

DB18

Manufacture of wearing apparel; dressing and dyeing of fur

DJ27, 28

Manufacture of basic metals and fabricated metal products

DN361

Manufacture of furniture

E 40

Electricity, gas, steam and hot water supply

F 45

Construction

G

Wholesale and retail trade; repair of motor vehicles etc.

G 50

Sale, maintenance and repair of motor vehicles and motorcycles; retail sale of automotive fuel

G 51

Wholesale trade and commission trade, except of motor vehicles and motorcycles

G 52

Retail trade, except of motor vehicles and motorcycles; repair of personal and household goods

H 55

Hotels and restaurants

I

Transport, storage and communication

I 602

Other land transport

K

Real estate, renting and business activities

K 70

Real estate activities

M 80

Education

N 85

Health and social work

O

Other community, social and personal service activities

 

 

 

 

MORE DATA

 

Statistical database

  Economy – Financial statistics of enterprises - Enterprises’ value added, productivity etc. financial key ratios – Annual statistics

    FS23: Enterprises' financial key ratios by economic activity and number of persons employed

 

 

 

 

CONTACT PERSON

 

Hille Vares

Enterprise and Agricultural Statistics Department

Tel +372 625 9193

hille.vares@stat.ee

 

 

Updated: 06.02.2014