Financial position and cash flow

The equity ratio at the end of the financial year was 43 percent (41). Equity per share amounted to SEK 44.67 (43.54) and return on equity at the end of the financial year was 11 percent (5). Return on working capital (R/WC) was 62 percent (51).

The Group’s net interest-bearing debt at the end of the financial year amounted to SEK 4,048m (4,920), including pension liabilities of SEK 58m (62), lease liabilities of SEK 504m (531) and contingent considerations corresponding to SEK 124m (106). Outstanding bank borrowings at the end of the financial year amounted to SEK 4,146m (4,434), of which short-term bank borrowings totalled SEK 1,736m (749).

Cash and cash equivalents, consisting of cash and bank balances, together with granted but unutilised credit facilities, amounted in total to SEK 1,447m (1,311) at the end of the financial year.

The net debt/equity ratio was 0.7, compared with 0.9 at the beginning of the financial year.

The Group has a good margin in relation to the covenants under the bank agreements, which stipulatean interest coverage ratio of at least 4.0 times andan equity ratio exceeding 25 percent. At the end of the financial year, the interest coverage ratio was 9.9 times according to the definition in the bank agreements.

Cash flow from operating activities amounted to SEK 888m (666) for the quarter and SEK 1,392m (1,095) for the financial year. The increase during the quarter is attributable to higher result after financial items and improved working capital. Changes in working capital amounted to SEK 426m (332) for the quarter. During the financial year, payments for company acquisitions totalled SEK 196m (59) and paid contingent considerations previous years' company acquisitions amounted to SEK 51m (45). Net investments in non-current assets amounted to SEK 254m (281) and mainly related to investments in instruments for rental to customers. A dividend of SEK 91m (61) was paid to the Parent Company’s shareholders.