WASCO BERHAD 300 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024 45 CAPITAL MANAGEMENT The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital structure in order to continue supporting its businesses, maximise shareholders’ value and sustain future development of businesses within the Group. The Group strives to monitor and maintain an optimal gearing ratio. The gearing ratio is calculated as net debt divided by total capital. Net debt is calculated as loans and borrowings less time deposits, cash and bank balances. Total capital includes paid-up share capital and reserves attributable to owners of the Company. The Group’s net gearing ratio is 0.21 times (2023: 0.48 times). Under the terms of the major bank loans and borrowings, the Group is required to comply with certain financial covenants throughout the tenure of the bank loans and borrowings. The key financial covenants are consolidated gearing ratio, consolidated finance service cover ratio, debt to EBITDA ratio and net tangible net worth. The Group has complied with these financial covenants during the financial year and up to the date of this report.
RkJQdWJsaXNoZXIy NDgzMzc=