Yamaha 2006 Annual Report Download - page 51

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Yamaha Annual Report 2006 51
Financial Condition
Assets, Liabilities and Shareholders’ Equity
Assets
Total assets at March 31, 2006, amounted to ¥520.0 billion, an increase of ¥14.4 billion, or
2.8%, compared with the previous year-end. Current assets decreased ¥16.2 billion, or
7.2%. Cash and bank deposits fell ¥14.8 billion, or 28.9%, to ¥36.4 billion, from ¥51.2 billion
at the previous year-end. Notes and accounts receivable and inventories also declined.
The total value of fixed assets increased ¥30.6 billion, or 10.9%, from ¥280.0 billion to
¥310.6 billion. This was due mainly to an increase in the value of shares in Yamaha Motor
Co., Ltd., an equity-method affiliate, and an appreciation in the market value of the equity
holdings of financial institutions and other stocks, which led to growth of ¥31.9 billion, or
31.6%, in investment securities compared with the previous year-end.
Liabilities
Total liabilities at March 31, 2006, amounted to ¥199.5 billion, a drop of ¥27.0 billion, or
11.9%, from the ¥226.5 billion recorded on the same date in 2005. Contributory factors
included a reduction in long- and short-term debt due to a continued emphasis on debt
repayments and lower income taxes payable.
Actual Interest-Bearing Debt
One of the goals of the YSD50 medium-term business plan is to improve the Company’s
financial health by reducing actual interest-bearing debt—borrowings, less cash and bank
deposits—to zero. Following fiscal 2005, the Company again recorded a negative real balance
of interest-bearing debt at the end of fiscal 2006. Borrowings amounted to ¥28.5 billion, and
cash and bank deposits totaled ¥36.4 billion. Going forward, the Company plans to strike a
balance between returning profits to shareholders and investing for future growth.
Shareholders’ Equity
Shareholders’ equity increased ¥40.8 billion, or 14.8%, compared with the previous year-end,
to ¥316.0 billion. This reflected a combination of higher net income, higher net unrealized
holding gains on other securities in line with an increase in share value, and a net gain on
translation adjustments due to yen depreciation. The shareholders’ equity ratio was 60.8%
as of March 31, 2006, an increase of 6.4 percentage points over the 54.4% posted at the
previous year-end.
Return on equity (ROE) was 9.5%.
Shareholders’ Equity and ROE
(Millions of Yen, %)
316,0059.5
0
(ROE)
ROE Shareholdersí Equity
2002 2003 2004 2005 2006