Financial Targets
| Target | 2024 | 2023 | |
|---|---|---|---|
| Leverage factor: Economic debt/Operating EBITDA adjusted1) | ≤ 2.5 | 2.0 | 1.8 |
| Coverage ratio: Operating EBITDA adjusted/financial result1) | > 4.0 | 11.0 | 8.3 |
| Equity ratio: Equity to total assets (in percent) | ≥ 25.0 | 47.5 | 46.5 |
1) After modifications. |
Bertelsmann utilizes a financial management system employing quantitative financial targets concerning the Group’s economic debt and, to a lesser extent, its capital structure. One of the financial targets is a dynamic leverage factor calculated as the ratio of economic debt to operating EBITDA adjusted; this factor should not regularly exceed the defined maximum of 2.5. As of December 31, 2024, the leverage factor was 2.0 (December 31, 2023: 1.8).
As of December 31, 2024, economic debt increased to €5,445 million compared to €4,713 million in the previous year. Net financial debt amounted to €2,883 million and was above the level of the previous year (December 31, 2023: €2,267 million). As of December 31, 2024, recognized lease liabilities increased to €1,418 million (December 31, 2023: €1,333 million). At €731 million as of December 31, 2024, provisions for pensions and similar obligations were slightly above the level of the previous year (December 31, 2023: €700 million).
Another financial target is the (interest) coverage ratio. This is calculated as the ratio of operating EBITDA adjusted, used to determine the leverage factor, to financial result, and should exceed four. In the reporting period, the coverage ratio was 11.0 (previous year: 8.3). The Group’s equity ratio rose to 47.5 percent (December 31, 2023: 46.5 percent), remaining significantly above the self-imposed minimum of 25 percent.
