NWG // FINANCIAL INFORMATION
Capital tied up
Capital tied up in inventories decreased by SEK 222.6 million compared to the previous year and amounted to SEK 5,124.2( 5,346.8) million. Exchange rate changes increased the inventory value by SEK 169.6 million. The inventory turnover rate was at the same level as last year and amounted to 0.9( 0.9) times.
SEK million 31 Dec 2024 31 Dec 2023 Raw materials 56.4 59.8 Work in progress 0.7 0.7 Goods in transit 367.1 365.9 Finished goods 4,700.0 4,920.4
Total 5,124.2 5,346.8
As of December 31, 2024, total obsolescence reserves for inventory amounted to SEK 180.1( 152.9) million and the obsolescence reserve for finished goods inventory amounted to 3.7 %( 3.0).
Accounts receivable amounted to SEK 1,596.7( 1,475.2) million, with the increase primarily related to higher net sales in December( compared to last year).
Investments, financing and liquidity
Cash flow from operating activities amounted to SEK 1,278.3 million, which was SEK 314.5 million higher than the previous year( SEK 963.8 million). The improved cash flow is primarily due to lower purchases of goods. Cash flow from investing activities amounted to SEK-296.8(-220.9) million, which is mainly related to investments in inventory operations.
Net debt decreased by SEK 210.1 million and amounted to SEK 1,818.8( 2,028.9) million. Of the decrease, SEK 364.1 million was related to credit institutions, while debt linked to leasing increased by SEK 154.0 million. The net debt to equity ratio and net debt through working capital decreased and amounted to 25.2( 31.4)% and 33.2( 37.2)%, respectively.
The equity ratio improved by 3.5 percentage points and amounted to 63.7( 60.2) %.
The total credit line as of December 31 amounted to SEK 2,670 million, of which SEK 1,634 million was utilized. Of the total credit, SEK 2,150 million is in effect through December 2026, SEK 120 million is in effect through August 2027 and SEK 150 million has a term that extends to December 2030. The other SEK 250.0 million has a term of between three months and four years. The credit line is limited in amount to, and dependent on, the assets. The financing agreement means that key figures( covenants) must be met in order to maintain the credit line. The Group’ s key figures( covenants) were fulfilled as of December 31, 2024
Intangible assets
The Group ' s intangible fixed assets consist mainly of goodwill and trademarks. The trademarks with the largest book values are well-known trademarks such as Orrefors and Kosta Boda within Gifts & Home Furnishings as well as mainly Cutter & Buck within Sports & Leisure. The Group’ s book values are tested annually, or more often if required, to assess whether any need for impairment exists.
The assets ' value in use is determined by discounting cash flow forecasts for the next five years, including a terminal growth period, using a weighted average cost of capital( WACC). The most important assumptions in determining the value in use include growth rate, operating margin and WACC.
Based on the tests and analyzes that have been carried out during the year, there is currently no need for impairment. Nor was there any need for impairment for the comparison year. For more information about the Group ' s intangible fixed assets and impairment testing, see note 8.
ANNUAL REPORT // 085