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, please refer to the 2020 Integrated Report of the DB Group.
Derivation of debt coverage
|Debt coverage (€ million or %)||2012||2013||2014||2015||2016||2017||2018||2019||2020|
|+ Net operating|
|+ 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|
|= Operating cash flow after taxes||5,430||5,038||5,058||4,833||4,924||5,147||5,043||4,679||281|
|Net financial debt||16,366||16,362||16,212||17,491||17,624||18,623||19,549||24,157||29,345|
|+ 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|
|+ Pension obligation||3,074||3,164||4,357||3,688||4,522||3.940||4,823||5,354||6,517|
+ Hybrid capital as of Dec. 31
|÷ Adjusted net debt||24,515||24,172||24,905||25,387||27,148||27,497||28,617||30,528||36,863|