Capital structure

Husqvarna’s target is to have a seasonally adjusted net debt in proportion to earnings before interest, tax, depreciations and amortizations (EBITDA) not to exceed 2.5 in the long-term.

This target for financial indebtedness may be adjusted in the event of changes to the macroeconomic situation, or allowed to deviate for a shorter period of time due to acquisitions. Seasonality adjusted net debt, when assessing the capital structure target, is defined as a 4 quarter rolling net debt adjusted for IAS 19 revaluation impact on pension liabilities. Dividend shall normally exceed 40% of income for the year.


Capital structure
SEKm 2015 2014
Net pension liabilities 1,395 1,835
Other interest-bearing liabilities 6,952 7,504
Less: liquid funds and other interest-bearing assets -1,972 -2,105
Net debt 1) 6,375 7,234
Net debt, excluding net pension liabilities 4,980 5,399
EBITDA 3,980 3,315
Net debt/EBITDA 1.60 2.18
Total equity 13,061 12,088
Total assets 29,669 29,176
Equity/assets ratio 44% 41%
1) As reported.