Mercedes 2002 Annual Report Download - page 82

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76 |Analysis of the Financial Situation
The 12.6 billion (5%) increase in receivables from financial
services was due mainly to a reduction in sales of receivables
and the increase in sales financing agreements in the United
States. Overall, the leasing and sales financing business
accounted for 180.3 billion, i.e. 43%, of our total assets.
Inventories – less advance payments received – are report-
ed in the consolidated balance sheet at 115.6 billion (2001:
116.8 billion). Adjusted for currency effects (11.4 billion),
inventories increased by 10.3 billion, in particular as a result
of pending market launches for new products in the Mercedes
Car Group and higher levels of used vehicles in the Services
Division. On the other hand, the inventory in the Chrysler
Group Division decreased.
Trade accounts receivable decreased to 16.3 billion (2001:
16.4 billion). The reduction was mainly influenced by currency
exchange rate effects, offset by an increase at Chrysler Group
due to higher sales.
The increase in other receivables to 117.6 billion (2001:
116.2 billion) was principally due to the strong increase
in derivative financial instruments as a result of the changed
currency exchange rates.
Year-on-year, liquid funds fell by 14% to 112.4 billion. Liquid
funds are actively managed within the Group to ensure a mini-
mum level of corporate liquidity. The total decrease in liquid
funds is comprised of 11.6 billion relating to cash and cash
equivalents and 10.5 billion relating to securities.
On the liabilities side, Group equity decreased by 10% to
134.9 billion (2001: 139.0 billion). The decrease was mainly
due to the additional pension liability, exchange rate effects,
and the dividends distributed for the 2001 financial year
(11.0 billion). On the other hand, consolidated net income of
14.7 billion had the effect of increasing equity. The equity
ratio, adjusted for the proposed dividend distribution for 2002
(11.5 billion), declined 0.5 percentage points to 17.8% (2001:
18.3%). The equity ratio for the industrial business amounted
to 24.8% (2001: 25.7%).
Accruals rose by 11.5 billion to 143.7 billion. The increase
was mainly due to additional pension accruals as a result
of the underfunded status of the pension plans, higher tax and
warranty accruals, and accruals for sales incentives. Further-
more the accruals were reduced by currency effects amount-
ing to 14.6 billion, the valuation of accruals for derivative
financial instruments, and utilization of accruals in connection
with the turnaround plans at Chrysler Group and in the Freight-
liner, Sterling and Thomas Built Buses business unit.
Balance Sheet Structure
Fixed assets
Non-fixed assets
of which: Liquidity
Deferred taxes and
prepaid expenses
In billions of 3
Liabilities
of which:
Financial liabilities
Deferred taxes
and income
’02 ’01 ’01 ’02
Accrued liabilities
Stockholders’ equity
187
42%
207
45%
207
18%
187
18%
56%
50%
20%
23%
57%
55%
7%
7%
44%
42%
2% 5% 5% 4%
Balance Sheet Structure of the Industrial Business
Property, plant
and equipment
Other fixed assets
Deferred taxes and
prepaid expenses
In billions of 3
Liabilities
’02 ’01 ’01 ’02
Accrued liabilities
Stockholders’ equity
Inventories
Receivables
Liquidity
Deferred taxes
and income
100
36%
17%
14%
17%
11%
5%
109
37%
16%
14%
13%
10%
10%
109
26%
37%
35%
2%
100
25%
43%
32%