- Equity/assets ratio was 33.9% (31.8).
- Return on equity was 20.6% (14.9).
- Average net assets, excluding items affecting comparability, amounted to SEK 20,940m (20,320).
- Working capital improved to SEK –5,902m (–5,154).
- Net borrowings amounted to SEK –709m (665).
Net assets and working capital
Average net assets for the period amounted to SEK 19,545m (19,411). Net assets as of December 31, 2010, amounted to SEK 19,904m (19,506).
Adjusted for items affecting comparability, i.e., restructuring provisions, average net assets increased to SEK 20,940m (20,320), corresponding to 19.7% (18.6) of net sales.
Working capital as of December 31, 2010, amounted to SEK –5,902m (–5,154), corresponding to –5.4% (–4.5) of annualized net sales.
The return on net assets was 27.8% (19.4), and 31.0% (26.2), excluding items affecting comparability.
Net borrowings
Net borrowings amounted to SEK –709m (665). The net debt/equity ratio was –0.03 (0.04). The equity/assets ratio was 33.9% (31.8).
During 2010, SEK 1,039m of the long-term borrowings matured and SEK 380m of new long-term borrowings were raised. Long-term borrowings as of December 31, 2010, including long-term borrowings with maturities within 12 months, amounted to SEK 9,590m with average maturities of 3.3 years, compared to SEK 11,153m and 3.9 years by the end of 2009. A significant portion of long-term borrowings is raised in the Euro and Swedish bond markets.
During 2011 and 2012, long-term borrowings in the amount of approximately SEK 3,300m will mature. Liquid funds as of December 31, 2010, amounted to SEK 12,805m (13,357), excluding short-term back-up facilities.
Since 2005, Electrolux has an unused revolving credit facility of EUR 500m maturing 2012 and since 2010, an additional unused committed credit facility of SEK 3,400m maturing 2017.
The Group’s goal for long-term borrowings includes an average time to maturity of at least two years, an even spread of maturities, and an average interest-fixing period of one year. At year-end, the average interest-fixing period for long-term borrowings was 0.9 year (1.0).
At year-end, the average interest rate for the Group’s total interest-bearing borrowings was 3.2% (2.6).
Liquid funds
Liquid funds at year-end amounted to SEK 12,805m (13,357). Liquid funds corresponded to 18.9% (16.2) of annualized net sales. Since 2005, Electrolux has an unused revolving credit facility of EUR 500m maturing 2012 and since 2010, an additional unused committed credit facility of SEK 3,400m maturing 2017.
Rating
Electrolux has investment-grade ratings from Standard & Poor’s. In 2010, the investment-grade rating for the long-term debt was upgraded from BBB to BBB+.
| Rating | ||||
| Long-term debt | Outlook | Short-term debt |
Short-term debt, Nordic |
|
| Standard & Poor’s | BBB+ | Stable | A-2 | K-1 |
Net debt/equity and equity/assets ratio
The net debt/equity ratio was –0.03 (0.04). The equity/assets ratio increased to 33.9% (31.8).
Equity and return on equity
Total equity as of December 31, 2010, amounted to SEK 20,613m (18,841), which corresponds to SEK 72.41 (66.24) per share. Return on equity was 20.6% (14.9). Excluding items affecting comparability, return on equity was 24.4% (22.0).