Bayer, BASF, Telekom: Out of debt - Dax corporations prepare for rising interest rates
Since the end of the zero-interest-rate phase in summer 2022, companies have drastically reduced their net debt. Eleven corporations have more cash than debt - but there are outliers.
German companies listed on the Dax index have reduced their net financial debt by 22% to €196 billion since the end of the zero-interest-rate phase in 2022. Over the same period, their equity increased by 21% to a record €991 billion, resulting in a decrease in the debt-to-equity ratio from 30.8% to 19.8%. The reduction in debt is attributed to higher interest rates, which have made borrowing more expensive.
Companies such as Fresenius and SAP have made significant reductions in their net financial debt, while others like BASF, Eon, and RWE have seen increases. Bayer has secured €3 billion in funding from US investor Apollo to help reduce its debt burden.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
