Section 04
This section includes notes related to
Jotun’s capital structure and financial
items, including financial risks.
Capital Structure and
Financial Items
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53.2 %
Equity / asset ratio, in %
2020: 54.1 %
0.5
Net debt / EBITDA
2020: 0.4
21.7 %
Return on capital employed
(NOK million)
2020: 27.2 %
Jotun’s capital structure and financial position
remain robust. The Group’s liquidity position
stayed solid throughout the year, with ample
reserves available to support liquidity needs in the
Group.
The Group’s equity ratio at year-end was 53 per
cent, well above the loan covenant requirement
of minimum 25 per cent. The strong financial
performance in 2021 also kept the Group’s
leverage ratio (Net debt/EBITDA) at 0.5,
significantly below the loan covenant requirement
of maximum 4.0.
As a consequence of Jotun’s global footprint in
its operations, investments and financing, Jotun
is exposed to financial risks related to currency
exchange rates, interest rates, raw material prices
and customer credit. These risks are primarily
managed through the companies’ normal
operations and in accordance with the Group’s
Treasury policy.
Jotun Annual Report 2021 I 33