Financial targets

Financial targets for the Sandvik Group are excluding discontinued operations and including Sandvik Materials Technology unless otherwise stated.

Growth ≥5 percent

Target to be achieved through both organic and acquired growth.

  • Target through the economic cycle
  • Organic revenue growth
  • M&A (disposals and acquisitions)

EBIT margin – trough ≥16 percent

Trough = lowest level through an economic cycle.

  • 12 month rolling
  • Excluding items impacting comparability
  • Excluding metal prices effects in Sandvik Materials Technology

Dividend pay-out ratio 50 percent

  • Target through the economic cycle
  • Excluding items impacting comparability

Net gearing, net debt/equity <0.5

Net debt to equity ratio, including discontinued operations

  • Annual target, excluding transformational M&A
  • Including pension liabilities and impact from adaption of IFRS16 leases

Adjusted EBIT

Earnings before interest and taxes adjusted for items affecting comparability. Corresponds to adjusted operating profit.

Earnings per share

Profit/loss for the year attributable to equity holders of the Parent Company divided by the average number of shares outstanding during the year.


Earnings before interest and taxes. Corresponds to operating profit.

Equity ratio

Total equity in relation to total capital.

Items affecting comparability

Items with a significant impact on Group or business area results from gains and losses on business disposals, restructuring and impairments costs.

Lost time injury frequency rate (LTIFR)

Number of lost time injuries per million worked hours.

Net debt/equity ratio

Interest-bearing current and non-current debts, including net pension liabilities, less cash and cash equivalents divided by total equity.

Order intake

Order intake for a period refers to the value of all orders received for immediate delivery and those orders for future delivery for which delivery dates and quantities have been confirmed. General sales agreements are included only when they have been finally agreed upon and confirmed. Service contracts are included in the order intake with the full binding contract amount upon signing.

Rate of capital turnover

Revenues for the last quarter annualized divided by average total capital.

Relative working capital

Average working capital for the last four quarters, divided by revenues in the last twelve months.

Return on capital employed

Operating profit/loss plus financial income, as a percentage of a four quarter average capital employed. Capital employed is defined as total capital less current non-interest-bearing debt.

Return on total capital

Operating profit/loss plus financial income, as a percentage of four quarter average total capital.

Return on total equity

Consolidated net profit/loss for the year as a percentage of average total equity during the year.


SMM is an abbreviation for the Sandvik Manufacturing and Machining Solutions business area.


SMRT is an abbreviation for the Sandvik Mining and Rock Technology business area. As of January 1, 2021 the business area is divided to Sandvik Mining and Rock Solutions (SMR) and Sandvik Rock Processing Solutions (SRP).


SMT is an abbreviation for the Sandvik Materials Technology business area.

Total recordable injury frequency rate (TRIFR)

Total number of injuries per million worked hours.

Working capital

Total of inventories, trade receivables, account payables and other current non-interest-bearing receivables and liabilities, excluding tax assets and liabilities and provisions.