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, 2024, total equity was EUR 2,614 million (EUR 2,572 million) and the amount of interest-bearing debt was EUR 1,387 million (EUR 1,343 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, 2024.
| As at Dec 31, 2024 | As at Dec 31, 2023 | |
| Interest-bearing debt | EUR 1,387 million | EUR 1,343 million |
| Cash and cash equivalents | EUR 482 million | EUR 432 million |
| Interest-bearing financial assets | EUR 55 million | EUR 25 million |
| Interest-bearing net debt | EUR 850 million | EUR 886 million |
| Total equity | EUR 2,614 million | EUR 2,572 million |