Volvo's goals are strong and stable credit ratings

A long-term competitive market position requires availability of capital to implement investments.

The financial strategy ensures that the Group’s capital is used in the best possible manner by:
  • balancing shareholders’ expectations on returns with creditors’ demands for reliable security
  • strong and stable credit ratings
  • diversified access to financing from the capital markets
  • margin in the balance sheet to cope with a strong decline in the economy
  • customer financing at competitive conditions to our customers
  • favorable return to shareholders.
The goal concerning capital structure is defined as the financial net debt for the Industrial Operations and it shall under normal circumstances be below 40% of shareholders’ equity.

Volvo carefully monitors the trend of financial key ratios to confirm that the financial position is in line with the Group’s policy. The financial key ratios include order intake, operational development and financial development.