Working capital amounted to SEK –12,234m (–8,377), corresponding to –9.9% (–6.6) of net sales.
| SEKm | Dec. 31, 2014 | % of annualized net sales |
Dec. 31, 2015 | % of annualized net sales |
|---|---|---|---|---|
| Inventories | 14,324 | 11.2 | 14,179 | 11.5 |
| Trade receivables | 20,663 | 16.2 | 17,745 | 14.3 |
| Accounts payable | –25,705 | –20.1 | –26,467 | –21.4 |
| Provisions | –8,448 | –8,057 | ||
| Prepaid and accrued income and expenses | –8,495 | –9,406 | ||
| Taxes and other assets and liabilities | –716 | –228 | ||
| Working capital | –8,377 | –6.6 | –12,234 | –9.9 |
| Property, plant and equipment | 18,934 | 18,450 | ||
| Goodwill | 5,350 | 5,200 | ||
| Other non-current assets | 5,528 | 4,752 | ||
| Deferred tax assets and liabilities | 4,664 | 5,244 | ||
| Net assets | 26,099 | 20.4 | 21,412 | 17.3 |
| Average net assets | 25,166 | 22.4 | 24,848 | 20.1 |
| Return on net assets, % | 14.2 | 11.0 |
Average net assets were SEK 24,848m (25,166), corresponding to 20.1% (22.4) of net sales.
| 11 | 12 | 13 | 14 | 15 | |
| Average net assets | 22091 | 26543 | 27148 | 25166 | 24848 |
| Return on net assets | 13.7 | 14.8 | 5.8 | 14.2 | 11 |
Average net assets for 2015 amounted to SEK 24,848m. Return on net assets was 11.0% (14.2).
| SEKm | Net assets |
|---|---|
| December 31, 2014 | 26,099 |
| Change in restructuring provisions | 880 |
| Write-down of assets | –4,787 |
| Changes in exchange rates | –1,054 |
| Capital expenditure | 3,027 |
| Depreciation | –3,936 |
| Other changes in fixed assets and working capital, etc. | 1,183 |
| December 31, 2015 | 21,412 |
| SEKm | Dec. 31, 2014 | Dec. 31, 2015 |
|---|---|---|
| Liquid funds | 9,835 | 11,199 |
| % of annualized net sales1) | 14.1 | 17.5 |
| Net liquidity | 4,661 | 6,425 |
| Fixed interest term, days | 11 | 9 |
| Effective annual yield, % | 1.3 | 1.4 |
1) Liquid funds plus back-up credit facilities divided by annualized net sales, see below.
For additional information on the liquidity profile, see Note 18.
Liquid funds as of December 31, 2015, amounted to SEK 11,199m (9,835), excluding short-term back-up credit facilities. Electrolux has two unused committed back-up revolving credit facilities. One multicurrency facility of SEK 3,400m maturing in 2017 and one multicurrency facility of EUR 500m, approximately SEK 4,600m, maturing in 2018. Electrolux has also a committed revolving credit facility of USD 300m, approximately SEK 2,500m, maturing in 2018.
| 11 | 12 | 13 | 14 | 15 | |
| Capital turnover-rate | 4.6 | 4.1 | 4 | 4.5 | 5 |
The capital turnover-rate increased to 5.0 times (4.5) in 2015.
| SEKm | Dec. 31, 2014 | Dec. 31, 2015 |
|---|---|---|
| Borrowings | 14,703 | 13,097 |
| Liquid funds | 9,835 | 11,199 |
| Financial net debt | 4,868 | 1,898 |
| Net provisions for post-employment benefits | 4,763 | 4,509 |
| Net debt | 9,631 | 6,407 |
| Net debt/equity ratio | 0.58 | 0.43 |
| Equity | 16,468 | 15,005 |
| Equity per share, SEK | 57.52 | 52.21 |
| Return on equity, % | 15.7 | 9.9 |
| Equity/assets ratio, % | 21.7 | 20.8 |
The financial net debt decreased to SEK 1,898m (4,868) as a result of the positive cash flow from operations after investments. Net provisions for post-employment benefits declined by SEK 254m. Net debt declined to SEK 6,407m (9,631).
During 2015, SEK 2,632m in long-term borrowings were amortized and new long-term borrowings were raised with SEK 1,447m.
Long-term borrowings as of December 31, 2015, including long-term borrowings with maturities within 12 months, amounted to SEK 11,000m with average maturity of 2.8 years, compared to SEK 12,123 and 2.8 years at the end of 2014. In 2016, long-term borrowings in the amount of SEK 2,677m 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 0 and 3 years. At year-end, the average interest-fixing period for long-term borrowings was 0.8 years (1.2).
At year-end, the average interest rate for the Group’s total interest-bearing borrowings was 2.7% (2.4).
| 16 | 17 | 18 | 19 | 20 | 21- | |
| Long-term borrowings, by maturity | 2677 | 625 | 2230 | 2226 | 1308 | 1934 |
In 2016, long-term borrowings in the amount of SEK 2,677m will mature. For information on borrowings, see Note 2 and 18.
Electrolux has investment-grade rating from Standard & Poor’s. In 2015, the rating was changed from BBB with a stable outlook 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–1 |
The net debt/equity ratio was 0.43 (0.58). The equity/assets ratio was 20.8% (21.7).
| 06 | 07 | 08 | 09 | 10 | 11 | 12 | 13 | 14 | 15 | |
| Net debt/equity ratio | -0.02 | 0.29 | 0.28 | 0.04 | -0.03 | 0.31 | 0.65 | 0.74 | 0.58 | 0.43 |
| 06 | 07 | 08 | 09 | 10 | 11 | 12 | 13 | 14 | 15 | |
| Equity/assets ratio | 22.7 | 26.9 | 25.6 | 31.8 | 33.9 | 30.1 | 23.2 | 20.8 | 21.7 | 20.8 |
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, 2015, amounted to SEK 15,005m (16,468), which corresponds to SEK 52.21 (57.52) per share. Return on equity was 9.9% (15.7).