A requirement in this exercise is that we need to comment on the trends in the operating statistics at the foot of the model. Can you justify these trends? Let's go have a look at those statistics.

The EBITDA margin to start with, that's a pretty straightforward one. It's exactly the same as our consensus estimates from Felix for the first three years. And then we built the figures that gave us these figures here. Your EBIT margin a little bit lower because it includes the cost of d and a, PP and E, though a bit more interesting, the PP e, which was below 1%, is really taking off.

Why is that? It's because of the extra lease assets the company has fulfillment centers that they're leasing that's growing their pp and e. We should expect this to go up. So this is good.

But then I see my operating working capital as a percentage of sales. I see that going down again, I'm feeling a little bit nervous about this. Why is this? Well, the company has changed its inventory days from 155 down to 125 over a couple of years. So we have seen that operating, working capsule coming down again. That makes sense. Ah, that makes me feel calm.

One last weird thing though is here I see my heroic and it's going up. I'm, again, it's very healthy, but it's going really quite high, close to 50% and it makes me question is anything wrong there? And it's to do with the closing invested capital. If we see what it's including, it includes equity, two debts minus cash, but it's excluded. The operating lease liabilities, operating lease liabilities are another source of funding and another source of invested capital. So we should be including that. So we've done that in row 124, lease adjusted closing invested capital that's been added into, that's great.

And then we've just needed to adjust the return on that. Here we've taken EBIT R, so that's where we start with our EBIT in F 35. And we're gonna add back the interest on the lease. So the interest on the lease is C 1 22 interest rates multiplied by E 82, the lease.

Why do we add back the interest on the lease? 'cause it's EBIT, it's earnings before interest R, right? So now I can take that After tax.

Effectively my NOPAT net operating profit after tax divided by Lars's invested capital. And I see that this new adjusted heroic, it's increasing, which is great, looks healthy, but it's not grabbing those huge heights that we saw before.