BERLIN, March 25 (Xinhua) -- The operating cash flow of Germany's largest companies listed on the Frankfurt Stock Exchange rose by 11.3 percent to 142.8 billion euros (154.4 billion U.S. dollars) in 2019, according to an analysis published by the consulting firm Ernst & Young on Wednesday.
Turnover of the 30 major companies in the DAX index, excluding Germany's Deutsche Bank, increased by 6 percent to around 1.4 trillion euros in 2019, stated the analysis on annual and quarterly company reports.
An increase in turnover was recorded for 26 DAX German companies, while only three companies recorded a decrease in turnover compared to the previous year, the analysis showed.
At the same time, the cumulative earnings before interest and taxes (EBIT) of German DAX companies fell "significantly" by almost 15 percent to around 105.6 billion euros.
"The majority of DAX companies have high, albeit of course not unlimited, cash reserves," said Hubert Barth, chairperson of the management board of Ernst & Young Germany.
Automotive companies in particular were "keeping considerable sums in reserve," Ernst & Young noted. Volkswagen, BMW, Daimler and Continental reported cash reserves equivalent to 46.7 billion euros in their financial assets.
Large companies would "now do their utmost to minimize cash outflows as far as possible," said Barth.
Simplified access to short-time work allowances for companies during the coronavirus crisis which the German government announced last week could help minimize cash outflows, the analysis indicated.
It found that Germany's DAX companies already generated 52 percent of their sales outside of Europe. Twenty-seven percent of the sales had been generated in North America, while 19 percent in Asia.
"Different regions are being affected at different speeds" in the global coronavirus crisis, said Barth. "This can help to stabilize cash flow and keep at least parts of the business running despite plant closures." (1 euro = 1.08 U.S. dollars)
