Net assets

Overview of DEUTZ AG’s net assets    
  31 Dec 2014 31 Dec 2013
€ million    
Non-current assets 502.0 518.8
Current assets 404.5 382.9
Prepaid expenses 2.0 2.5
Deferred tax assets 85.3 66.6
Total assets 993.8 970.8
Equity 453.9 438.0
Provisions 284.0 242.6
Liabilities 255.3 289.6
Deferred income 0.6 0.6
Total equity and liabilities 993.8 970.8
Working capital (€ million) 80.6 73.5
Working capital ratio at the balance sheet date (%) 5.6 5.4
Equity ratio (%) 45.7 45.1
Working capital: inventories plus trade receivables minus trade payables.
Equity ratio: equity / total equity and liabilities.

Non-current assets

Non-current assets at 31 December 2014 amounted to €502.0 million (31 December 2013: €518.8 million). The year-on-year decrease of €16.8 million was mainly due to the lower figure for property, plant and equipment because depreciation charges were higher than new capital expenditure during the year.

Current assets

As at 31 December 2014, current assets amounted to €404.5 million. This increase of €21.6 million compared with current assets as at 31 December 2013 (€382.9 million) largely resulted from the higher volume of cash and cash equivalents held on 31 December 2014, although it was partly offset by a decline in trade receivables.

Working capital

Working capital as at 31 December 2014 amounted to €80.6 million (31 December 2013: €73.5 million), up by €7.1 million year on year. While inventories remained virtually the same, this increase in working capital was principally attributable to a fall in trade payables. Trade receivables were also down, which counteracted much of the impact. As a consequence, there was also a slight increase in the working capital ratio, i.e. the ratio of working capital (inventories plus trade receivables less trade payables) to revenue. As at the balance sheet date1), this ratio was 5.6 per cent compared with 5.4 per cent as at 31 December 2013.

Deferred tax assets

The rise in deferred tax assets arose from the recognition of higher provisions under HGB compared with the tax accounts and partly from increased deferred tax assets due to the findings of the tax audit carried out for 2009 to 2011. These findings led to restatement of the tax accounts as at 31 December 2014. Furthermore, deferred tax assets related to the possible utilisation of loss carryforwards in the future have been recognised.

Equity ratio

Owing to the positive level of net income, equity advanced by €15.9 million to €453.9 million (31 December 2013: €438.0 million). The equity ratio increased slightly to reach 45.7 per cent as at 31 December 2014 (31 December 2013: 45.1 per cent).


At 31 December 2014, provisions stood at €284.0 million (31 December 2013: €242.6 million). The significant increase of €41.4 million compared with the end of 2013 was largely attributable to higher provisions for potential warranty claims in the future and the recognition of restructuring provisions relating to our decision to optimise our network of sites.


As at 31 December 2014, liabilities had fallen by €34.3 million to €255.3 million (31 December 2013: €289.6 million), primarily due to the decline in trade payables, partly resulting from the lower production volume at the end of the year under review.

1) Working capital ratio as at the balance sheet date: ratio of working capital (inventories plus trade receivables minus trade payables) at the end of the reporting period to revenue for the preceding twelve months.