by
Chris Muszalik and Antje
Timmermann
1 Porsche
For a long
time Ferdinand Porsche has been active as a constructor for other
companies, before he founded his own engineer’s office in Stuttgart
on 25th of April 1931. Racing cars for the Auto Union were
constructed there among others. Between 1944 and 1950 the production
was located in Kärnten, where Ferry Porsche produced the first car
with the name on Porsche – the 356.
In 1947 Ferry Porsche took
the chair from his father Ferdinand Porsche and started up the nowadays
well-known sportscar company. Also the worldwidely known corporate design is
based on Ferry’s ideas.
Porsche is the smallest
independent German automotive producer and its good standing is not only based
on best performance. The design of Porsche cars is in comparison to competitor
Ferrari far less aggressive and more suited to every day use (w.a. 1, 2006). Of
all the automotive producers in Germany, Porsche is the smallest independent
company, running a mass-production. Concerning return on capital, Porsche is the
most profitable automotiv company worldwide.
In an examination (see
illustration 1) of fifteen european countries, car brands were supposed to be
assigned to thirteen given image features. At the feature „creates sporty cars“
participants from all coutries assigned the same brand – Porsche (comp. Kloss,
2003, p. 403f.).
(oben)
1.1
Task formulation
In this
research paper a calculation of capital flow shall be carried
through at a practical example. In the course of this, theories on
the calculation of capital flow shall be described and put into
practice.
For this purpose the
company report 2004 of the Porsche AG (balance and profit calculation) have been
taken from the internet. This work concentrates mainly on the calculation of
capital flow of the Type Fund1 of the Porsche group. Objective of this work is,
to indicate the cash flows (sources and expenditure).
(oben)
1.2
Approach of the task
The
calculation of capital flow records information on return and
property situation, to expand the information for the development of
the financial situation. Furthermore it indicates the cash flows of
a period (deposits and payments), which are divided in:
·
Capital flow from
current business activity (area of turnover)
·
Capital flow from
investment activity (area of investment)
·
Capital flow from
financing activities (exterior area)
From the sum of these
three areas results the change of financial resources during the business year
and illustrates the three cash flows in a more comprehensive way.
To elaborate a calculation
of capital flow, the following figures from the company report are needed:
·
Balance sheet with
values from the previous and current year
·
Profit and loss
account of the current year
·
Assets history sheet
From a theoretical point
of view, the fond is a means of payment, which serves the simplification of
positions and by which the positions can be interpreted more comprehensibly and
easily. There are three types of fonds. This paper shall deal exclusively with
the Funds 1, which is composed of liquid resources, changes of owner, credits,
and stocks and shares. Here the liquid resources shall be looked at, which
result from the difference of current and previous year.
(oben)
2
Calculation of Capital
Flow (Cash Flow)
The origins of
calculation of capital flow lie in the United States of America.
Since the end of the Second World War are the so-called “statements
of sources and applications of founds (fund statements)” a usual
practice. In the United States of America, a new guideline has been
passed in 1987 by the Financial Accounting Standards Board (FASB),
in which the form and contant of calculations of capital flow have
been determined.
In the Europe of the 20th
century the calculation of capital flow did not play in major role in the first
time. Only in the nineteen seventies, due to increasing globalization, the
calculation of capital flow generally caught on in the internationally active
companies in Europe (comp. Weilemann, 1992, p. 11f.).
(oben)
2.1
Objectives and Tasks
The annual
accounts, according to § 264, II of the German Code of Commercial
Law, allows an insight into the property, financial and return
situation of a company. However, the annual accounts are not able to
portray the changes in the liquidity of the company. This can be
done instead with the help of calculations of capital flow. The term
calculation of capital flow lacks a standardized definition. In
general the term describes the examination of inflow and outflow of
capital during a business year. Therefore the calculation of capital
flow belong to the calculations of movement and indicates, opposed
to the profit and loss account, the amount of a certain totality of
resources, the form of origin of resources and their expenditure,
and the reasons for these changes.
The calculation of capital
is an independent tool for planning and controlling of the liquidity and is
therefore often called “third annual calculation”, as it is a sensitive addition
to balance sheet and profit and loss account.
Objective of the
calculation of capital flow is the judgement of the company’s ability to
generate future positive cash flows, to settle its reliabilities and dividends
and to secure the demand for extern financial resources (comp. Peemöller, 2003,
p. 349).
The calculation of capital
is a tool for the judgement of a company and serves the realization of security
objectives of intern and extern demand groups. Therefore an intern as well as an
extern analysis can be carried through. However, for the extern analysis, it has
to be taken into consideration that outsiders do not have all the information at
their disposal, so that the calculation of capital flow cannot contain the same
amount of information as an internally established calculation.
(oben)
2.2
Funds calculation
A fund is a combination of
several balance positions. For the calculation of capital flow this is also
understood as an accounting unit, however, it is to cash up seperately over the
totality of resources.
Therefore a fund can for
the time being understood as means of payment. As the size and composition of
company funds can be chosen freely, a most suitable choice of funds and
seperation, is one of the most important decisions within the scope of the
calculation of capital flow. In this connection the balance of a company can be
viewed as the largest possible fund (comp. Weilenmann, 1992, p. 11).
(oben)
3
Calculation of capital flow, shown at an example
3.1
Balance Sheet
The balance sheet, is
according to § 242 of the German Code of Commercial Law, a calculation, demanded
by the legislator. The balance sheet informs about the relation between debts
and property. In the calculation assets and liabilities are compared in the form
of accounts. “The passive part includes sources of property, origin of resources
or financing and the active part includes forms of property, expenditure or
investment” (Zdrowomyslaw, 2002, p. 145).
In the first step of a
calculation of capital flow type fund 1, the values from the annual balance
sheet are adopted (see illustration 3 on p. 5 for the Porsche group). On the
right side the changes from the previous year to the current year are
calculated.
(oben)
3.2
The Change Balance Sheet
The change balance sheet
is a balance sheet, which indicates the stock difference of two or more years
and with that it categorizes the movement of resources into expenditure and
origin (comp. Tacke, 1997, p. 96 f.).
The change balance sheet
also indicates where resources, which the company has to its disposal, have flow
to (expenditure) and where the resources come from (origin) (ibid).
A rough pattern of a
change balance sheet can be seen in illustration 2. The change balance sheet for
the Porsche group can be found in illustration 4, page 6. However, it is not
necessary for the calculation of the capital flow.
change balance sheet
(Quelle: Tacke, 1997, S. 96)
Porsche
balance sheet (Quelle: Porsche Geschäftsbericht, 2004, S.
102)
(oben)
Porsche
change balance sheet
(oben)
3.3
Profit and Loss account
The profit and
loss accont indicates expenses on the one hand and returns on the other. At the
comparison of expenses and return remains arithmetically a balance, the
so-called profitbalance or lossbalance.
According to §
275 HGB, joint-stock companies are required to publicize their profit and loss
account. This has to happen according to § 275 HGB in graduated form. The
annually established balance sheet together with the profit and loss account
make up the annual account of a company.
The following
illustration 5 shows the profit and loss account of the Porsche group in the
business year 2004.
Porsche
profit and loss accont
(Porsche Geschäftsbericht, 2004, S.
103)
(oben)
3.4 Assets
history sheet
Additionally to the
balance sheet and to the profit and loss account, represents the assets history
sheet the third source of the calculation of capital flow. The assets history
sheet has to be attached to the balance sheet of joint-stock companies. An
overview on the seperate entries of the balance sheet is given there, as well as
on extension expenditures Furthermore all changes are indicated and the result
is the value of the final balance sheet (see illustration 6 for the Porsche
group).
Porsche
assets history sheet
(oben)
3.5
Fund type 1
The size of a fund results
from the comparison of figures from the previous and the current year and it
provides information on the increase and decrease of the liquid resources. The
changes of liquid resources of the Porsche group (see illustration 7) are in
this case positive. On which facts this is depending, can be answered through
the analysis of the opposite position (see illustration 8) (comp. Haas, 2000, p.
327).
Fund type 1 of Porsche
Calculation of capital flow to fund type 1 of Porsche
(oben)
3.6
Fund
type 2
To
the fund type 2 belong additionally to the positions from fund type 1 also notes
receivables and accounts receivables and other property. The observation is
still limited on the asset side of the balance sheet. “A netto calculation is
only offeres by the fund type 3” (Haas, 2000, p. 333).
Fund type 2 of Porsche
Calculation of capital flow to fund type 2 of Porsche
(oben)
3.7
Fund
type 3
„In the fund types 1 and 2
only entries from the asset side of the balance sheet have been combined to
arithmetical units. In fund type 3 short terms liabilities, which can be
understood as limited ammonuts (restrictions) are also taken into account” (Haas,
2000, p. 336).
Fund type 3 of Porsche
Calculation of capital flow to fund type 3 of Porsche
(oben)
Literaturverzeichnis
AXA: (2006) Porsche
übertrifft eigene Prognose, in: Frankfurter Allgemeine Zeitung, vom
28. Februar 2006
Fleischer, H.: (2004)
Handelsgesetzbuch, 41. Aufl. München, 2004
Haas, P.: (2000) Kosten, Investition,
Finanzierung, 3. Aufl., München, 2000
Kloss, I.: (2003) Werbung, 3. Aufl.
München, 2003
o. V. 1: (2006) Porsche, in:
http://de.wikipedia.org/wiki/Porsche
(Stand: 23. 02. 2006)
o. V. 2: (2006)
Toyota-Produktionssystem, in:
http://de.wikipedia.org/wiki/Toyota-Produktionssystem
(Stand: 24. 02. 2006)
o. V. 3.: (2006) Anlagengitter, in:
http://lexikon.freenet.de/Anlagegitter
(Stand: 24. 02. 2006)
Peemöller, V. H.: (2003) Bilanzanalyse
und Bilanzpolitik, 3. Aufl., Wiesbaden, 2003
Porsche AG: (2004) Geschäftsbericht
2003/94, Stuttgart, 2005
Tacke, H. R.: (1997)
Jahresabschlussanalyse in der Praxis, Berlin, 1997
Weilenmann, P.: (1992)
Kapitalflussrechnung in der Praxis, 2. Aufl., Zürich, 1992
Zdrowomyslaw, N. / Kuba, K.: (2002)
Buchführung und Jahresabschluss, 3. Aufl., München, 2002
(oben)
drucken
vollständige Arbeit
Download
[Home] [Forschung] [Projekte]
[Publikationen] [Galerie] [Kontakt] [Impressum] [Sitemap]
