Casio 2006 Annual Report Download - page 22

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Financial Condition
Total assets increased 1.3% to ¥501,960 million at the term-end. Current assets declined ¥10,769 million to
¥319,179 million, owing to an increase in trade receivables and a decrease in marketable securities. Inventory turn-
over declined by 0.2 of a month to 1.7 months. Investments and other assets increased ¥16,986 million to ¥182,781
million, as a result of a rise in investment securities.
Total liabilities decreased 7.5% to ¥298,915 million, due to a decline in the current portion of interest-bearing
debt, mainly through the redemption of bonds. The debt-to-equity ratio was 0.63, compared with 0.95 for the
previous year, marking a substantial improvement.
Shareholders’ equity rose 17.7% to ¥191,011 million. The shareholders’ equity ratio increased 5.4 percentage
points to 38.1%.
Cash Flow Analysis
Net cash provided by operating activities amounted to ¥43,875 million. The main contributing factors are income
before income taxes and minority interests of ¥39,671 million, depreciation of ¥26,629 million, and a ¥10,696
million increase in notes and accounts receivable.
Net cash used in investing activities amounted to ¥29,682 million. This is mainly attributable to the payment of
¥19,935 million for the acquisitions of tangible fixed assets and ¥11,815 million for the acquisitions of intangible
fixed assets, which more than offset ¥2,958 million in proceeds from sales of consolidated subsidiaries and affiliates.
Net cash used in financing activities totaled ¥39,818 million. Of this amount, ¥30,000 million was used for the
redemption of bonds, and ¥9,688 million was used for the payments for long-term debt.
Cash and cash equivalents as of March 31, 2006 were down ¥22,357 million from the previous term-end, at
¥125,232 million. This is mainly attributable to the redemption of bonds and an increase in trade receivables in line
with the growth in sales of new products during the last month of the term under review.
Capital Investment
Capital investment amounted to ¥19,711 million, up 10.8% over the previous term. Broken down by business seg-
ment, Casio invested ¥10,592 million, up 2.6%, in the Electronics Segment, and ¥8,765 million, up 22.0%, in the
Electronic Components and Others Segment. The remaining capital investment, made by the Company as a whole,
cannot be accounted for by business segment.
Research & Development
R&D expenses rose 9.6% to ¥18,205 million. By business segment, the Electronics Segment increased 16.8% to
¥11,428 million, while the Electronic Components and Others Segment increased 0.5% to ¥2,505 million. The
remaining R&D expenses were used throughout the Company and cannot be accounted for by business segment.
Management’s Discussion and Analysis
20 CASIO COMPUTER CO., LTD.