Overview of DEUTZ AG’s net assets
|31 Dec 2018||31 Dec 2017||Change|
|Deferred tax assets||83.8||85.1||–1.3|
|Total equity and liabilities||1,174.3||1,143.6||30.7|
|Working capital 1) (€ million)||92.8||63.2||29.6|
|Working capital ratio 2) (31 Dec, %)||5.8||4.7||1.1|
|Equity ratio 3) (%)||54.7||55.0||–0.3|
|1) Inventories plus trade receivables less trade payables.
2) Working capital ratio as at the balance sheet date: ratio of working capital (inventories plus trade receivables less trade payables) at the end of the reporting period to revenue for the preceding twelve months.
3) Equity / total equity and liabilities.
Compared with the end of 2017, non-current assets had fallen by €7.1 million. This change was primarily the result of disposing of our stake in DEUTZ (Dalian) Engine Co., Ltd., Dalian, China, and the related decrease in investments. The decrease was partly offset by an increase in intangible non-current assets as a result of capital expenditure on the development of new engines and the refinement of existing ones.
Working capital had risen to €92.8 million as at 31 December 2018 and was thus €29.6 million higher than the level reported a year earlier. The rise in working capital was attributable, above all, to increased inventories due to the larger volume of business. Despite the revenue growth, the working capital ratio also increased and stood at 5.8 per cent as at the balance sheet (31 December 2017: 4.7 per cent).
Owing to the net income generated in the reporting year, equity advanced again to reach €642.7 million, an increase of €13.7 million. The rise was partly offset by the distribution of a dividend to the shareholders of DEUTZ AG of €18.1 million for 2017. At 54.7 per cent, the equity ratio was down slightly at the end of the year.
As at 31 December 2018, provisions had increased by €6.1 million. This change was predominantly the result of higher provisions for warranties in connection with the growth of revenue in the reporting year.
As at 31 December 2018, liabilities had risen by €10.8 million to €264.3 million. The main reasons for this were a reporting date-related increase in other liabilities to factoring companies and a volume-related rise in trade payables. A decrease in liabilities to banks, which were scaled back as planned, was the primary factor in the opposite direction.