Debt coverage
We use debt coverage as a value management figure to steer our debt.
Debt coverage represents the relationship between operational cash flow and adjusted net financial debt. To determine the debt coverage the cash flow is more leasing adjusted as well as adjusted for tax payments. The debt include not only net financial debt and lease liabilities, but also pension liabilities.
The target value for debt coverage is ≥ 20%.
For details of debt coverage in 2023, please refer to the 2023 Integrated Report of the DB Group.
Derivation of debt coverage
| Debt coverage (€ million or %) | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
| EBITDA adjusted 1) | 5,601 | 5,139 | 5,110 | 4,778 | 4,797 | 4,930 | 4,739 | 5,436 | 1,002 | 2,287 | 4.783 | 2,877 | |
| + Net operating interest | -865 | -842 | -824 | -759 | -721 | -682 | -618 | -620 | -541 | -464 | -467 | -620 | |
| + Depreciation ratio lease rate | 850 | 886 | 906 | 951 | 1,005 | 1,079 | 1,114 | - | - | - | - | - | |
| + Original tex expenses | -156 | -145 | -134 | -137 | -157 | -180 | -192 | -137 | -180 | -302 | -447 | -265 | |
| = Operating cash flow after taxes 1) | 5,430 | 5,038 | 5,058 | 4,833 | 4,924 | 5,147 | 5,043 | 4,679 | 281 | 1,521 | 3.869 | 1,992 | |
| Net financial debt as of Dec. 31 | 16,366 | 16,362 | 16,212 | 17,491 | 17,624 | 18,623 | 19,549 | 24,157 | 29,345 | 29,107 | 28.827 | 33,953 | |
| + Present value of operating leases | 5,075 | 4,646 | 4,336 | 4,208 | 5,002 | 4,934 | 4,245 | - | - | - | - | - | |
| = Adjusted net financial debt | 21,441 | 21,008 | 20,548 | 21,699 | 22,626 | 23,557 | 23,794 | 24,157 | 29,345 | 29,107 | 28.827 | 33,953 | |
| + Pension obligation | 3,074 | 3,164 | 4,357 | 3,688 | 4,522 | 3.940 | 4,823 | 5,354 | 6,517 | 5,031 | 2.970 | 3,492 | |
+ Hybrid capital 2) as of Dec. 31 | - | - | - | - | - | - | - | 999 | 1,001 | 1,001 | 1.001 | 1,001 | |
| ÷ Net debt as of Dec. 31 | 24,515 | 24,172 | 24,905 | 25,387 | 27,148 | 27,497 | 28,617 | 30,528 | 36,863 | 35,139 | 32.798 | 38,446 | |
| Debt coverage 1) | 22.2 | 20.8 | 20.3 | 19.0 | 18.1 | 18.7 | 17.6 | 15.3 | 0.8 | 4.3 | 13,1 | 5.2 | |
1) 2022 figures for external revenues and employees adjusted due to changes to the presentation of DB Arriva as a discontinued business unit.
2) As assessed by the rating agencies, half of the hybrid capital shown on the balance sheet is taken into account in the calculation of the adjusted net debt.