Electrolux financial challenges

Electrolux is facing significant financial challenges. The company’s total borrowing of SEK 40 billion is too high relative to its earnings, leading to concerns about small margins and high interest costs¹. If the market does not improve quickly, there is a substantial risk that Electrolux will need to carry out a new share issue. This could result in significant dilution for existing shareholders, as the company’s market capitalization is nearly equal to its net debt.

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