Casio 2006 Annual Report Download - page 7

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D/E ratio
(left scale)
Shareholders’ equity ratio
(right scale)
D/E ratio and
Shareholders’ equity ratio
04 05 06
(Times) (%)
0.0
0.5
1.0
1.5
25
30
35
40
(2) Strengthening Financial Structure
We are working to improve the shareholders‘ equity
ratio and debt/equity (D/E) ratio with the aim of
strengthening our fi nancial position to ensure future
growth.
In the term under review, the shareholders‘ equity
ratio improved from 32.7% in the previous term to
38.1%, and the D/E ratio went from 0.95 to 0.6. In
the future, we will maintain our efforts to optimize
cash fl ow management while working to generate
a suffi cient level of free cash fl ow, with the aim of
achieving a complete turnaround to a strong and
stable fi nancial position. By leveraging our core
technologies, which enable the development of
lightweight, compact and energy-effi cient products,
we will continue strengthening our strategic
businesses, including Timepieces, Digital Cameras,
Electronic Dictionaries, Cellular Phones, and TFT LCDs.
The specifi c strategies for these strategic businesses
appear on p. 8-13.
In addition, we will continue our efforts to
create distinctive products fully utilizing our core
technologies, and simultaneously implement
measures to strengthen our business structure and
bolster our fi nancial position to increase profi tability
over the long term, thus further improving the quality
of our management.
July 2006
Kazuo Kashio
President and CEO
5
Annual Report 2006