Canon 2008 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2008 Canon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 102

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

55
Wor
k
ing capita
l
in fi scal 2008 decreased b
y
¥231,234 million
(
U.S.$2,541 million
)
, to ¥1,120,848 million
(
U.S.$12,317 million
)
,
compared with ¥1,352,082 million in fi scal 2007 and ¥1,619,042
million in
fi
scal 2006. This decrease was primaril
y
a result o
f
a
d
ecrease in cas
h
an
d
cas
h
equiva
l
ents. Canon
b
e
l
ieves its wor
k
in
g
ca
p
ital will be suffi cient for its re
q
uirements for the foreseeable
future. Canon’s capital requirements are primarily dependent
on management’s business plans regarding the levels and timing
o
f
purchases o
f
fi
xed assets and investments. The workin
g
ca
p
ital ratio (ratio of current assets to current liabilities) for fi scal
2008 was 2.19 com
p
ared to 2.08 for fi scal 2007 and 2.39 for
fi scal 2006
.
R
eturn on asset
s
(net income divided b
y
the avera
g
e o
f
total
assets) was 7.3% in fi scal 2008, com
p
ared to 10.8% in fi scal
2007 and 10.6
%
in fi scal 2006
.
Return on stockholders’ equity (net income divided b
y
the
avera
g
e of total stockholders’ equit
y
) was 11.1% in fi scal 2008
com
p
ared with 16.5% in fi scal 2007 and 16.3% in fi scal 2006
.
Debt to total assets rati
o
was 0.4%
,
0.6% and 0.7% as o
f
Decem
b
er 31, 2008, 2007 an
d
2006, respective
ly
. Canon
h
a
d
short-term loans and long-term debt of ¥13,963 million
(
U.S.$153 million
)
as of December 31, 2008, ¥26,997 million
as o
f
December 31
,
2007 and ¥31
,
151 million as o
f
December
3
1
,
2006.
OFF-BALANCE SHEET ARRANGEMENTS
As part o
f
its on
g
oin
g
business, Canon does not participate in
transactions t
h
at
g
enerate re
l
ations
h
ips wit
h
unconso
l
i
d
ate
d
entities or fi nancial
p
artnershi
p
s, such as entities often referred
to as structured fi nance or s
p
ecial
p
ur
p
ose entities, which
would have been established
f
or the purpose o
f
f
acilitatin
g
o
ff
-balance sheet arran
g
ements or other contractuall
y
narrow
or
l
imite
d
p
ur
p
oses
.
Canon provides guarantees for bank loans of its employees,
affi liates and other companies. Canon would have to perform
under a
g
uarantee i
f
the borrower de
f
aults on a pa
y
ment
within the contract periods o
f
1
y
ear to 30
y
ears in the case o
f
employees with housing loans, and of 1 year to 10 years in the
case of affi liates and other com
p
anies. The maximum amount of
undiscounted pa
y
ments Canon would have had to make in the
event of default b
y
all borrowers was ¥22,308 million (U.S.
$
245
million) at December 31, 2008. The carr
y
in
g
amounts of the
liabilities recognized for Canon’s obligations as a guarantor
under those guarantees were insignifi cant
.
3.0 20
15
10
5
0
2.5
2.0
1.5
1.0
0.5
0.0
04 05 06 07 08
Working Capital Ratio
04 05 06 07 08
Return on Stockholders’ Eqiuty
(%)
2.27 2.28
2.39
2.08 2.19
16.8
16.0 16.3 16.5
11.1