Omron 2001 Annual Report Download - page 26

Inventory Turnover
(Times)
Return on Tangible Fixed Assets
(%)
1997 1998 1999 2000 2001
4.44
4.66
4.28 4.18
4.56
24 Omron Corporation
1997 1998 1999 2000 2001
9.2
11.0
1.3
14.1
7.2
Working Capital and Current Ratio
(Millions of Yen/%)
148,789
152,799
164,610
169,797
1997 1998 1999 2000 2001
178 186
204 215
145,489
179
Working Capital
Current Ratio
growing competition, but the strong euro reduced these
gains on translation into yen. The Electronic
Components Company faced challenges related to
declining demand. Consequently, sales to external
customers were down marginally to ¥61.0 billion.
Asia and Other
Despite the impact of the cooling U.S. economy in the
second half, the economies of Southeast Asia continued
their solid recovery, and growth in China was
particularly strong. Favorable conditions for
semiconductor-related and electronics products in
Southeast Asia spurred sales growth for the Industrial
Automation Company and the Electronic Components
Company. Both companies also did well in China,
although slowing consumer demand reduced Healthcare
Company sales there. As a result, sales to external
customers increased 20.5 percent to ¥45.0 billion
Assets, Liabilities and Shareholders’ Equity
As of March 31, 2001, total assets increased ¥13.7
billion, or 2.4 percent, from a year earlier to ¥593.1
billion. Current assets increased ¥11.6 billion, or 3.7
percent, from a year earlier to ¥328.9 billion, with
increases in trade notes and accounts receivable,
inventories and deferred income taxes offsetting
decreases in cash and cash equivalents and short-term
investments. Trade notes and accounts receivable
increased ¥3.4 billion, or 2.6 percent, from a year earlier
to ¥133.8 billion mainly because of the increase in net
sales. Inventories rose ¥13.8 billion, or 17.7 percent, from
a year earlier to ¥91.6 billion as Omron prepared to meet
increased orders received. Deferred income taxes
increased ¥3.2 billion to ¥12.2 billion.
Net property, plant and equipment increased ¥3.1
billion, or 2.0 percent, from a year earlier to ¥159.1
billion due primarily to disciplined capacity expansion to
meet growing demand. Investments and other assets
decreased ¥1.0 billion, or 1.0 percent, to ¥105.1 billion. A
decrease in the market value of investment securities
offset an increase in deferred income taxes.
The total of current liabilities, long-term liabilities and
minority interests in subsidiaries increased ¥23.8 billion,
or 9.8 percent, from a year earlier to ¥267.2 billion.
Current liabilities increased ¥35.9 billion, or 24.4 percent,
from a year earlier to ¥183.4 billion, primarily because of
an increase in the current portion of long-term debt.
Bank loans decreased ¥1.3 billion from the prior fiscal
year-end to ¥8.9 billion, while trade notes and accounts
payable increased due to higher net sales. The current
ratio stood at 179 percent, compared to 215 percent as of
March 31, 2000, and working capital decreased 14.3
percent to ¥145.5 billion. Long-term debt decreased 44.9
percent to ¥32.0 billion, mainly because Omron will
retire a significant portion of long-term debt during the
year ending March 2002. As a result, interest-bearing
liabilities, defined as the sum of bank loans, the current
portion of long-term debt and long-term debt, decreased
¥2.3 billion, or 3.3 percent, from a year earlier to ¥67.2
billion.