To enable a proactive strategy while balancing operational risk, SkiStar must have a strong financial base. The target is an Equity/Asset ratio of at least 35 percent. At current interest rates, the target for return on equity is at least 14 percent and as for return on capital employed at least 9 percent. The targets are based on 3-month treasury bills, which had an average interest rate of -0.24 percent (-0.50) during the 2019/20 financial year. The operating margin target is to exceed 22 percent in the long term.
SkiStar’s growth target is an annual organic growth rate exceeding inflation by at least 4 percentage points, in addition to any growth through acquisitions. Inflation in Sweden during the financial year was 1.4 percent (2.0).
The overall target is to increase the value of shareholders’ capital. SkiStar’s share price fell by 10 percent during the 2019/20 financial year. The Stockholm Stock Exchange all-share index (OMXSPI) gained 15 percent over the same period. No dividend is proposed (3.50). Target achievement figures are shown in more detail in the table below. Information about the Group’s earnings trend during the financial year can be found on page 41 of the 2019/20 Annual Report.
Target achievement, financial targets
|Target 2020/21||Outcome 2019/20||Target 2019/20||Outcome 2018/19|
|Equity/assets ratio, %||>35||49||>35||51|
|Return on capital employed, %||9||9||9||15|
|Return on equity, %||14||11||14||18|
|Operating margin, %||22||16||22||22|
|Organic growth above inflation, %||4||-11||4||4|