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 capital service.

The capital management strategy of METRO has remained unchanged compared with the .

Equity, liabilities and net debt in the consolidated financial statements

The total equity before non-controlling interests amounts to €2,053 million (30/9/2019: €2,314 million), while liabilities amount to €11,131 million (30/9/2019: €15,485 million). decreased by €1.6 billion and amounts to €3.8 billion (30/9/2019: €5.4 billion).

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€ million

30/9/20191

30/9/2020

Equity before non-controlling interests

2,314

2,053

Liabilities

15,485

11,131

Net debt

5,419

3,771

Financial liabilities (incl. liabilities from leases)

5,930

5,314

Cash and cash equivalents

500

1,525

Short-term financial investments2

11

19

1

Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).

2

Shown in the balance sheet under other financial assets (current).

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 2019/20, all external capital requirements were met. This includes, for example, adherence to a defined level of indebtedness and a fixed equity ratio.

Previous year
Period of 12 months relating to the financial year preceding the reporting year, usually cited as reference for statements in an annual report.
Glossary
Net debt
The net debt results from the balance of the financial liabilities (including from leases), cash and cash equivalents less financial investments. Financial investments include short-term bank deposits and short-term liquid debt instruments.
Glossary