Financial Performance Measures 2018. EBIT and Value Added

The financial performance measures used at Daimler are oriented toward our investors’ interests and expectations and provide the foundation for our value-based management.

The measure of operating profit at the divisional level is EBIT (earnings before interest and income taxes). EBIT thus reflects the divisions’ responsibility for profit and loss. The measure of operating profit used at the Group level is net operating profit. It comprises the EBIT of the divisions as well as profit and loss effects for which the divisions are not held responsible. The latter include income taxes and other reconciliation items.

Performance measurement system (Interactive Annual Report 2018)

Value added日日夜夜撸 is a key element of our performance measurement system, which is applied at both Group and divisional levels. It is calculated as the difference between operating profit and the cost of capital of average net assets. Alternatively, the value added of the industrial divisions can be determined by using the main value drivers: return on sales (quotient of EBIT and revenue) and net assets’ productivity (quotient of revenue and net assets).

Value added (Interactive Annual Report 2018)

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