Capital risk
The main objective of the Group upon managing capital risk is to ensure the sustainability of the Group in order to ensure income for its shareholders and benefits for other stakeholders, while maintaining the optimal capital structure in order to reduce the price of capital.
According to the common industry practice, the Group uses the debt to capital ratio to monitor its capital. The debt to capital ratio is calculated as the ratio of net debt to total capital. Net debt is calculated by deducting cash and bank accounts from total debt (short and long-term interest-bearing liabilities recognised in the consolidated balance sheet). Total capital is recognised as the aggregate of equity and net debt.
Equity ratios of the Group
| (EUR thousand) | 31.12.2023 | |
|---|---|---|
| Interest-bearing debt (excl. rental liabilities according to IFRS 16) | 28 541 | 26 118 |
| Cash and bank accounts | 8 971 | 9 606 |
| Net debt | 19 570 | 16 512 |
| Equity | 58 440 | 56 541 |
| Total capital | 78 009 | 73 053 |
| Net debt to capital ratio | 25% | 23% |
| Net debt to EBITDA ratio | 1,83 | 1,62 |
| Total assets | 114 036 | 105 766 |
| Equity ratio | 51% | 53% |