Financial targets

The Volvo Group has in recent years gone through a substantial restructuring process in order to reduce structural costs and increase efficiency and is currently in a phase where focus is on organic growth and improved profitability through continuous improvement and innovation.

A clear and straightforward operating margin target supports the efforts to drive performance across the Group through the business cycle. The target also aligns with the way the Group and its business areas are challenged and measured internally. The Board’s target is for the Group’s operating margin to exceed 10% measured over a business cycle.

A debt-free industrial balance sheet, excluding pension and lease liabilities, enables the Volvo Group to better manage cyclicality in a capital-intensive industry and to secure competitive cost of funds for the Financial Services’ operation.


The Volvo Group’s operating margin shall exceed 10% measured over a business cycle. 

In 2020, the operating margin amounted to 8.1% (11.5). The adjusted operating margin amounted to 8.4% (11.1). For more information on adjusted operating margin, please see Key Ratios on page 194 in the Annual and Sustainability Report.

The Industrial Operations shall under normal conditions have no net financial indebtedness excluding provisions for post-employment benefits and lease liabilities

At the end of 2020, the Industrial Operations had a net financial asset position of SEK 74.7 billion.

Financial Services’ target is a return on equity of 12–15% at an equity ratio above 8%.

In 2020, return on equity amounted to 8.3% at an equity ratio of 8.0%.

Learn more in the Volvo Group Annual Report 2020

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