Road goods transport, accounting figures for joint-stock companies, 2005

Operating income and operating expenditure are ordinary non-financial revenues and expenses. Operating income is broken down into sales revenues and other operating revenues. Operating expenditures cover costs of goods, changes in stocks, compensation of employees, depreciation of fixed tangible assets and intangible assets, write-down of fixed tangible assets and intangible assets and other operating expenditures. Operating profit/loss emerges as the difference between operating income and operating expenditure.

Fixed assets comprise assets mainly included in the enterprise’s long-term value-creation process and are specifically for permanent ownership or use, and claims and securities whose redemption is presupposed later than one year after the time of settlement. Fixed assets include tangible assets (machinery and furniture and fixtures, real property), intangible assets (patents, goodwill, etc.) and long-term capital investments (shares, units, etc.)

Current assets are assets tied to the enterprise’s sale of goods and services, or are expected to have a term of service of less than one year in the establishment. This includes means of payment and short-term capital investments (cash, bank deposits, shares, bonds, etc.), accounts receivable and stock of goods. Accounts receivables are current assets if it is agreed or presumed that they are paid within one year after the expiration of the fiscal year.

Equity is the part of the total capital that belongs to the owners, and it is shown as the value of the assets less debt. There are two main classifications of equity: invested equity and earned equity. Invested equity consists of the enterprise’s capital (share capital) and share premium account. Earned equity consists of funds for valuation differences and other equity.

Liabilities include all obligations that can place restrictions on the future use of the enterprise’s resources, and are divided into provisions for obligations, other long-term liabilities and short-term liabilities. Long-term liabilities are legal or financial obligations that cannot be redeemed in the coming accounting period, and cannot be connected to the enterprise’s short-term sale of goods and services. Short-term liabilities are debit items falling due for payment within one year from the time of settlement, or debt directly connected to the enterprise’s short-term sales of goods and services.

The key figures provide summarized information about a company’s profitability, capital strength and liquidity:

• The operating profit margin shows the ratio between operating profit and operating income.
• The operating margin shows the ratio between result before taxes and operating income.
• Return on total assets measures the yield on invested total capital.
• Return on equity shows the yield on equity.
• Circulation rate on total asset expresses the annual ratio of turnover to total assets. This can measure how well the capital tied up in an enterprise is utilized or how capital intensive the business.
• The equity ratio expresses the capital strength of the enterprise, i.e. the ability to withstand setbacks and losses.
• The current ratio is the proportion of current assets to short-term liabilities. This figure expresses a company’s ability to meet its financial obligations.

Industrial classification is in accordance with the revised Norwegian Standard Industrial Classification (SN2002) based on the EU industrial classification NACE Rev. 1 and the UN industrial classification ISIC Rev. 3.