Key indicators
An accounting approach has been taken to the calculation of variables in the key indicator report, that is, all of the variables in the key indicator report are taken directly from companies’ financial statements. Pay adjustments (unpaid labour) have not been used when calculating the key indicator report’s operating margin and net profit.
The scale and profitability of fishing industry sectors is described using the total income, value added, operating margin and net profit.
Total income includes turnover, direct subsidies and other income, such as compensation, and rental income.
Value added means the value contributed by the industry. Value added is the difference between an industry’s output (income) and input (material and equipment acquisitions, external services, and other operating costs, such as personnel). The value added includes items that contribute to GDP, such as wages and salaries, capital expenditure, taxes and profit. The Value Added Ratio is the value added as a percentage of total income.
The operating margin shows a company’s operating result before depreciation and financial items. The Operating Margin Ratio shows the result, after the deduction of fixed and variable costs, as a percentage of total income.
The net result is a measure of profitability. It shows a company’s profit after taxes and before non-recurring income and expenditure. The net profit ratio is the net result as a percentage of total income.
Net investments consist of the industry’s tangible and intangible investments.
The equity ratio is the key indicator for solvency. It shows the percentage of total assets that are funded by shareholder’s equity. The adjusted equity ratio uses the adjusted balance sheet total minus advances received. The Finnish Company Advisory Board (YTN) has issued the following guidelines on this key indicator:
Equity ratio:
| over 40% | good |
| 20–40% | satisfactory |
| under 20% | poor |
The key indicator for liquidity is the current ratio. It shows a company’s assets (current assets plus financial assets) as a percentage of its current liabilities. This key indicator therefore considers the potential realisation of current assets to maintain liquidity. The Finnish Company Advisory Board (YTN) has issued the following guidelines on this key indicator:
Current ratio:
| over 2 | good |
| 1–2 | satisfactory |
| under 1 | poor |