Working capital amounted to SEK –8,377m (–5,800), corresponding to –6.6% (–5.1) of net sales.
| SEKm | Dec. 31, 2013 | % of annualized net sales | Dec. 31, 2014 | % of annualized net sales |
|---|---|---|---|---|
| Inventories | 12.154 | 10.6 | 14.324 | 11.2 |
| Trade receivables | 19.441 | 17.0 | 20.663 | 16.2 |
| Accounts payable | –20,607 | –18.0 | –25,705 | –20.1 |
| Provisions | –7,556 | –8,448 | ||
| Prepaid and accrued income and expenses | –7,933 | –8,495 | ||
| Taxes and other assets and liabilities | –1,299 | –716 | ||
| Working capital | –5,800 | –5.1 | –8,377 | –6.6 |
| Property, plant and equipment | 17.264 | 18.934 | ||
| Goodwill | 4.875 | 5.350 | ||
| Other non-current assets | 5.263 | 5.528 | ||
| Deferred tax assets and liabilities | 3.359 | 4.664 | ||
| Net assets | 24.961 | 21.8 | 26.099 | 20.4 |
| Average net assets | 27.148 | 24.9 | 25.166 | 22.4 |
| Return on net assets, % | 5.8 | 14.2 | ||
| Return on net assets, excluding items affecting comparability, % | 14.0 | 17.1 |
Adjusted for items affecting comparability, i.e., restructuring provisions, average net assets amounted to SEK 27,941m (28,915), corresponding to 24.9% (26.5) of net sales.
| 10 | 11 | 12 | 13 | 14 | |
| Average net assets | 20940 | 23354 | 28112 | 28915 | 27941 |
| Return on net assets<sup>1)</sup> | 31 | 13.5 | 17.9 | 14 | 17.1 |
Net assets as of December 31, 2014, amounted to SEK 27,941m. Return on net assets, increased to 17.1% (14.0).
1) Excluding items affecting comparability.
| SEKm | Net assets |
|---|---|
| December 31, 2013 | 24,961 |
| Change in restructuring provisions | 36 |
| Write-down of assets | –2,857 |
| Changes in exchange rates | 2,413 |
| Capital expenditure | 3,006 |
| Depreciation | –3,671 |
| Other changes in fixed assets and working capital, etc. | 2,211 |
| December 31, 2014 | 26,099 |
| SEKm | Dec. 31, 2013 | Dec. 31, 2014 |
|---|---|---|
| Liquid funds | 7,232 | 9,835 |
| % of annualized net sales1) | 13.2 | 14.1 |
| Net liquidity | 4,262 | 4,661 |
| Fixed interest term, days | 12 | 11 |
| Effective annual yield, % | 1.6 | 1.3 |
1) Liquid funds plus an unused revolving credit facility of EUR 500m and a committed credit facility of SEK 3,400m divided by annualized net sales.
For additional information on the liquidity profile, see Note 18.
Liquid funds as of December 31, 2014, amounted to SEK 9,835m (7,232), excluding short-term back-up credit facilities. Electrolux has two unused committed back-up facilities. One credit facility of SEK 3,400m maturing in 2017 and one EUR 500m multi-currency revolving credit facility, approximately SEK 4,730m, maturing in 2018.
| 10 | 11 | 12 | 13 | 14 | |
| Capital turnover-rate | 5.1 | 4.3 | 3.9 | 3.8 | 4 |
Capital turnover-rate increased to 4.0 (3.8).
| SEKm | Dec. 31, 2013 | Dec. 31, 2014 |
|---|---|---|
| Borrowings | 14,905 | 14,703 |
| Liquid funds | 7,232 | 9,835 |
| Financial net debt | 7,673 | 4,868 |
| Net provisions for post-employment benefits | 2,980 | 4,763 |
| Net debt | 10,653 | 9,631 |
| Net debt/equity ratio | 0.74 | 0.58 |
| Equity | 14,308 | 16,468 |
| Equity per share, SEK | 49.99 | 57.52 |
| Return on equity, % | 4.4 | 15.7 |
| Equity/assets ratio, % | 20.8 | 21.7 |
The financial net debt decreased by SEK 2,805m as a result of the positive cash flow from operations after investments. Net provision for post-employment benefits increased by SEK 1,783m.
During 2014, SEK 2,254m in long-term borrowings were amortized and new long-term borrowings were raised with SEK 1,952m.
Long-term borrowings as of December 31, 2014, including long-term borrowings with maturities within 12 months, amounted to SEK 12,123m with average maturity of 2.8 years, compared to SEK 12,207m and 3.3 years at the end of 2013. During 2015 and 2016, long-term borrowings in the amount of SEK 5,209m will mature.
The Group’s target 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 between one and three years. At year-end, the average interest-fixing period for long-term borrowings was 1.2 year (1.0).
At year-end, the average interest rate for the Group’s total interest-bearing borrowings was 2.4% (3.2).
| 15 | 16 | 17 | 18 | 19 | 20- | |
| Long-term borrowings, by maturity | 2595 | 2723 | 500 | 1997 | 1942 | 2367 |
In 2015 and 2016, long-term borrowings in the amount of SEK 5,209m will mature. For information on borrowings, see Note 18.
Electrolux has investment-grade ratings from Standard & Poor’s. In 2014, the rating was changed from BBB+ to BBB with a stable outlook.
| Long-term debt | Outlook | Short-term debt | Short-term debt, Nordic | |
|---|---|---|---|---|
| Standard & Poor’s | BBB | Stable | A-2 | K-2 |
The net debt/equity ratio was 0.58 (0.74). The equity/assets ratio increased to 21.7% (20.8).
| 06 | 07 | 08 | 09 | 10 | 11 | 12 | 13 | 14 | |
| Net debt/equity ratio 1) | -0.02 | 0.29 | 0.28 | 0.04 | -0.03 | 0.31 | 0.65 | 0.74 | 0.58 |
| 06 | 07 | 08 | 09 | 10 | 11 | 12 | 13 | 14 | |
| Equity/assets ratio 1) | 22.7 | 26.9 | 25.6 | 31.8 | 33.9 | 30.1 | 23.2 | 20.8 | 21.7 |
1) Both ratios were significantly affected from 2012 and onwards by the changed pension accounting from the updated IAS 19 Employee Benefits.
Total equity as of December 31, 2014, amounted to SEK 16,468m (14,308), which corresponds to SEK 57.52 (49.99) per share. Return on equity was 15.7% (4.4).