Capital structure management
The capital structure management seeks to safeguard the ongoing business operations, to ensure flexible access to capital markets and to secure adequate funding at a competitive rate. Capital structure management at Valmet comprises both equity and interest-bearing debt. As at December 31, 2023, total equity was EUR 2,572 million (EUR 2,499 million) and the amount of interest-bearing debt was EUR 1,343 million (EUR 710 million).
Valmet has not disclosed any long-term financial ratio target for its capital structure. However, the objective of Valmet is to maintain strong capital structure in order to secure customers’, investors’, creditors’ and market confidence. The capital structure is assessed regularly by the Board of Directors and managed operationally by Treasury. Loan facility agreements include customary covenants and Valmet is in clear compliance with the covenants at the end of the reporting period. Valmet had no credit rating at December 31, 2023.
| As at Dec 31, 2023 | As at Dec 31, 2022 | |
| Interest-bearing debt | EUR 1,343 million | EUR 710 million |
| Cash and cash equivalents | EUR 432 million | EUR 277 million |
| Interest-bearing financial assets | EUR 25 million | EUR 30 million |
| Interest-bearing net debt | EUR 886 million | EUR 403 million |
| Total equity | EUR 2,572 million | EUR 2,499 million |