Omron 2001 Annual Report Download - page 27

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Return on Assets
(%)
Price/Book Value Ratio
(Times)
Return on Shareholders’ Equity
(%)
1997 1998 1999 2000 2001 1997 1998 1999 2000 2001
6.8
6.4
7.0
1.4
3.6
1.62
1.73 1.54
1.18
2.23
Omron Corporation 25
1997 1998 1999 2000 2001
6.7
4.8
5.5
0.7
3.5
Shareholders' equity decreased ¥10.1 billion, or 3.0
percent, over the previous fiscal year-end to ¥326.0
billion, mainly because of the use of retained earnings to
fund share repurchases, a decrease in unrealized gains
on investment securities, and an increase in pension
benefit obligations. The ratio of shareholders’ equity to
total assets stood at 55.0 percent, compared to 58.0
percent a year earlier. The debt/equity ratio was 0.820
times, compared to 0.724 times a year earlier. ROE rose
to 6.7 percent from 3.5 percent for the previous fiscal
year. In addition, net assets per share of stock issued and
outstanding rose to ¥1,311.12 from ¥1,308.64 a year
earlier. Foreign currency translation adjustment
decreased to ¥13.7 billion from ¥21.0 billion a year
earlier due to the depreciation of the yen, and had the
effect of reducing shareholders’ equity and minority
interests. Net unrealized gains on securities decreased
to ¥3.6 billion from ¥13.8 billion a year earlier. Omron
booked a minimum pension liability adjustment totaling
¥7.3 billion.
Cash Flow
Cash and cash equivalents and short-term investments
at March 31, 2001 decreased ¥9.3 billion, or 9.8 percent,
from a year earlier to ¥85.6 billion. Exchange rate changes
had the effect of increasing cash and cash equivalents by
¥3.1 billion.
Cash provided by operating activities decreased ¥9.1
billion, or 15.2 percent, to ¥50.8 billion. Higher net income,
depreciation and amortization were offset by changes in
current assets and liabilities due to sales growth and the
pension liability adjustment discussed above.
Cash used in investing activities decreased ¥1.8 billion,
or 5.3 percent, from the prior fiscal year to ¥32.4 billion,
primarily because of reduced net purchases of short-
term investments and investment securities. Capital
expenditures increased ¥6.4 billion, or 20.7 percent, year-
on-year to ¥37.6 billion.
Free cash flow totaled ¥18.4 billion. While net income
increased, higher accounts payable and cash reserves
set aside for the pending repayment of long-term debt
reduced working capital.
Cash used in financing activities totaled ¥24.6 billion
due to factors including the repurchase of Omron shares.