Capital management
The aim of the capital management strategy of METRO is to secure the company’s business operations to continue, to enhance its company value, to create solid capital resources to finance future growth and to provide for attractive dividend payments and debt service.
The capital management strategy of METRO has remained unchanged compared with the previous year.
Equity, liabilities and net debt in the consolidated financial statements
Equity amounts to €2,735million (30/9/2018: €3,074 million), while liabilities amounts to €11,762 million (30/9/2018: €12,132 million). Net debt related to continuing operations decreased by €0.2 billion in the adjusted year-on-year comparison and amounted to €2.9 billion as of 30 September 2019 (30/09/2018: €3.1 billion).
€ million |
30/9/20181 |
30/9/2018 adjusted3 |
30/9/2019 |
||||||
|---|---|---|---|---|---|---|---|---|---|
|
|||||||||
Equity |
3,074 |
3,074 |
2,735 |
||||||
Liabilities |
12,132 |
12,132 |
11,762 |
||||||
Net debt |
2,710 |
3,102 |
2,858 |
||||||
Financial liabilities (incl. finance leases) |
4,010 |
4,010 |
3,369 |
||||||
Cash and cash equivalents |
1,298 |
906 |
500 |
||||||
Short-term financial investments2 |
2 |
2 |
11 |
||||||
Local capital requirements
The capital management strategy of METRO consistently aims to ensure that the group companies’ capital resources meet the local requirements. During financial year 2018/19, all external capital requirements were fulfilled. This includes, for example, adherence to a defined level of indebtedness and a fixed equity ratio.