Working capital as of December 31, 2016 amounted to SEK –14,966m (–12,234), corresponding to –11.7% (–9.9) of annualized net sales.
Average net assets were SEK 20,957m (24,848), corresponding to 17.3% (20.1) of annualized net sales.
Return on net assets was 29.9% (11.0).
|SEKm||Dec. 31, 2016||% of annualized
|Dec. 31, 2015||% of annualized
|Prepaid and accrued income and expenses||–10,732||–9,406|
|Taxes and other assets and liabilities||–733||–228|
|Property, plant and equipment||18,725||18,450|
|Other non-current assets||4,009||4,752|
|Deferred tax assets and liabilities||5,588||5,244|
|Annualized net sales1)||127,490||123,772|
|Average net assets||20,957||17.3||24,848||20.1|
|Annualized net sales2)||121,093||123,511|
|Return on net assets, %||29.9||11.0|
1) Calculated at end of period exchange rates.
2) Calculated at average exchange rates.
|Average net assets||26543||27148||25166||24848||20957|
|Return on net assets||14.8||5.8||14.2||11||29.9|
Average net assets for 2016 declined to SEK 20,957m (24,848). Return on net assets was 29.9% (11.0).
|SEKm||Dec. 31, 2016||Dec. 31, 2015|
|% of annualized net sales1)||19.5||17.5|
|Fixed interest term, days||22||9|
|Effective annual yield, %||0.9||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, 2016, amounted to SEK 14,011m (11,199), excluding back-up credit facilities. Electrolux has one unused committed back-up multicurrency revolving credit facility of EUR 1,000m, approximately SEK 9,600m, maturing 2021 with two extension options of one year each, and one unused commited credit facility of USD 150m, approximately SEK 1,400m, maturing 2017.
The capital turnover-rate increased to 5.8 (5.0) times in 2016.
|SEKm||Dec. 31, 2016||Dec. 31, 2015|
|Financial net debt||–3,809||1,898|
|Net provisions for post-employment benefits||4,169||4,509|
|Net debt/equity ratio||0.02||0.43|
|Equity per share, SEK||61.72||52.21|
|Return on equity, %||29.4||9.9|
|Equity/assets ratio, %||24.7||20.8|
As of December 31, 2016, Electrolux had a net cash position of SEK 3,809m compared with a net debt of SEK 1,898m as of December 31, 2015. This is a result of the strong cash flow in 2016. Net provisions for post-employment benefits declined to SEK 4,169m (4,509). In total, net debt decreased to SEK 360m (6,407).
During 2016, SEK 2,669m in long-term borrowings were amortized.
Long-term borrowings as of December 31, 2016, including long-term borrowings with maturities within 12 months, amounted to SEK 8,451m with average maturity of 2.7 years, compared to SEK 11,000m and 2.8 years at the end of 2015.
In 2017, long-term borrowings in the amount of approximately SEK 500m 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. A maximum of SEK 5,000m of the long-term borrowings is allowed to mature in a 12-month period. At year-end, the average interest-fixing period for long-term borrowings was 0.8 years (0.8).
At year-end, the average interest rate for the Group’s total interest-bearing borrowings was 2.0% (2.7).
In 2017, long-term borrowings in the amount of approximately SEK 500m will mature. For information on borrowings, see Note 2 and 18.
Electrolux has investment-grade rating from Standard & Poor’s. In 2016, the rating was upgraded from BBB+ with a stable outlook to A- with a stable outlook. The A-2 short-term corporate credit rating was affirmed as was the short-term Nordic regional scale rating of K-1.
|Standard & Poor’s||A-||Stable||A–2||K–1|
The net debt/equity ratio was 0.02 (0.43). The equity/assets ratio was 24.7% (20.8).
Total equity as of December 31, 2016, amounted to SEK 17,738m (15,005), which corresponds to SEK 61.72 (52.21) per share. Return on equity was 29.4% (9.9).
1) Both ratios were significantly affected from 2012 and onwards by the changed pension accounting from the updated IAS 19 Employee Benefits.