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, please refer to the 2019 Integrated Report of the DB Group.

Derivation of debt coverage

Debt coverage (€ million or %) 2012 2013 2014 2015 2016 2017 2018 2019
  EBITDA adjusted 5,601 5,139 5,110 4,778 4,797 4,930 4,739 5,436
+ Net operating
   interest
-865 -842 -824 -759 -721 -682 -618 -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
= Operating cash flow after taxes 5,430 5,038 5,058 4,833 4,924 5,147 5,043 4,679
Net financial debt 16,366 16,362 16,212 17,491 17,624 18,623 19,549 24,157
+ 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

 + Pension obligation 3,074 3,164 4,357 3,688 4,522 3.940 4,823 5,354

 + Hybrid capital as of Dec. 31

- - - - - - - 999
 ÷ Adjusted net debt 24,515 24,172 24,905 25,387 27,148 27,497 28,617 30,528
Debt coverage 22.2 20.8 20.3 19.0 18.1 18.7 17,6 15,3