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The balance sheet shows total assets increased by 10.7 billion yen over last fiscal year’s total to 1,176.1 billion yen. Current assets rose, with a 67 billion yen increase in cash and cash equivalents along with an improvements in working capital as a result of the completed inventory adjustment. On top of these results, inventory was reduced by 41.1 billion yen thanks to buoyant sales in North America. The increase in total assets comes primarily as a result of these combined factors.
While our cash flow statements are disclosed in a quarterly report, as you can see from the increases and decreases in current assets, operating cash flow has been improving while free cash flow has been in the black since the first quarter and is still rising.
The increase in fixed assets was due to additional production equipment at SIA for the launch of the new Legacy and an upswing in unrealized gains on investment securities.
Interest-bearing debts decreased by approximately 40 billion yen from 423.5 billion at the end of the first quarter although we have refinanced short-term loans to long-term loans. We plan to further reduce interest-bearing debts by 10 billion yen to bring the total down to 370 billion yen. The debt-to-equity ratio was 1.04.
Net assets totaled 370.6 billion yen, down 24.1 billion yen due to a decrease in retained earnings. The shareholders’ equity to total assets ratio was 31.4%. Given these figures as well as the cash flow condition mentioned earlier, we can keep our financial position healthy. |
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