The profit is not staying on the balance sheet

Schneider Electric Norge, the Norwegian company in the electrical equipment trade, reported revenue of NOK 2.6bn for FY2025, up 21.0% on the year before. Operating profit rose to NOK 151m from NOK 104m, and net profit reached NOK 105m. The balance sheet moved the other way. Equity fell to NOK 206m from NOK 1.1bn, and total assets shrank to NOK 1.1bn from NOK 3.3bn. The equity ratio, the share of assets financed by owners, dropped to 18.0% from 33.6%. All figures are in NOK, from the individual statement.

Equity usually shrinks for three reasons: losses, dividends larger than the year's profit, or a capital reduction. This company made a profit, so I would look to the second and third. The accounts do not say which one it was. The cash line barely moved, at NOK 21.7m. Equity is still positive, but a fall of this size uses up much of the buffer that protects lenders and suppliers. The company earned more and kept far less of it on the balance sheet.