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Gearing ratio

Net financial debt – Equity – Gearing ratio

In millions of euros

Net financial debt – Equity – Gearing ratio (bar chart)

In the business year 2017/18, the voestalpine Group succeeded in further lowering the gearing ratio (net financial debt as a percentage of equity) thanks to the significant improvement in both key performance indicators that affect the level of indebtedness. As a result, net financial debt fell from EUR 3,221.1 million as of March 31, 2017, to EUR 2,995.1 million as of March 31, 2018, despite the substantial increase in working capital. The increase in working capital stems from the substantial increase in inventories, which are partly due to higher raw materials costs (e.g. for scrap and alloys) but mostly due to the build-up of a slabyard in the Steel Division in connection with the repairs of the blast furnace, which will be carried out in the business year 2018/19. Moreover, the working capital also rose due to the general expansion of business activities resulting from the economic upturn as well as the accelerated expansion at international facilities belonging to the Automotive Components segment (Metal Forming Division). The portion of working capital that is related to the blast furnace repairs will be eliminated in the business year 2018/19.

Both the reduction in investment activities and the excellent performance during the current business year have had a positive effect on net debt, with the equity base receiving a substantial boost from the result at the same time. By contrast, the development of the currency parities, particularly the devaluation of the US dollar against the euro, had a negative effect on the equity in the annual financial statements 2017/18. On the whole, equity rose year over year from EUR 6,060.3 million as of March 31, 2017, to EUR 6,554.3 million as of March 31, 2018. Given the aforementioned factors, the gearing ratio declined significantly in the same period, specifically, from 53.2% as of March 31, 2017, to 45.7% as of March 31, 2018.

Net financial debt can be broken down as follows:

Net financial debt

In millions of euros










Financial liabilites, non-current





Financial liabilites, current





Cash and cash equivalents





Other financial assets





Loans and other receivables from financing





Net financial debt





About voestalpine

In its business segments, voestalpine is a globally leading technology and capital goods group with a unique combination of material and processing expertise. With its top-quality products and system solutions using steel and other metals, it is a leading partner to the automotive and consumer goods industries in Europe and to the aerospace, oil and gas industries worldwide. The voestalpine Group is also the world market leader in turnout technology, special rails, tool steel, and special sections.


50 Countries on all 5 continents
500 Group companies and locations
51,600 Employees worldwide

Earnings FY 2017/18

€ 13 Billion


€ 2 Billion


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