käyttökateprosentti

Käyttökateprosentti, often abbreviated as KÄ, is a financial metric used in the Nordic countries to assess the profitability of a company. It is calculated by dividing the net profit of the company by the total assets, and then multiplying the result by 100 to get a percentage. The formula is as follows:

Käyttökateprosentti = (Net Profit / Total Assets) x 100

The Käyttökateprosentti provides insights into the company's ability to generate profit from its assets. A higher Käyttökateprosentti indicates better efficiency in using assets to generate profit. This metric is particularly useful for comparing the profitability of companies within the same industry, as it controls for differences in asset levels.

However, Käyttökateprosentti should not be used in isolation, as it does not provide a complete picture of a company's financial health. Other financial metrics, such as return on equity (ROE) and return on investment (ROI), should also be considered. Additionally, Käyttökateprosentti does not account for the time value of money, which means that it does not provide information about the timing of cash flows.

The Käyttökateprosentti is widely used in Finland, Sweden, and Norway, where it is a key metric for evaluating the performance of listed companies. It is also used by investors and analysts to compare the profitability of different companies and to make investment decisions.