The balance sheets shows total assets decreasing by 22.7 billion yen to 1,325.7 billion yen from the end of the previous fiscal year.
Current assets decreased by 13.5 billion yen, with a reduction in cash and time deposits and notes and accounts receivable, trade due in most part to seasonal trend. Likewise, current assets saw an increase in inventories mainly in relation to the development by the Boeing 787 and the work in process of AH-64D for the Japan Defense Agency in the Aerospace Company, and the increase of inventories due to seasonal trend in the domestic automobile market.
Fixed assets decreased by 9.2 billion yen, due primarily to the continued depreciation of jig and dies for the new launched vehicle by SIA.
Since this fiscal year, a category for leased assets has been added to the balance sheets. It was extracted from the existing categories of machinery, equipment and vehicles and other fixed assets. The result for fiscal year ended as of March 31, 2006 is shown as a reference.
Regarding interest-bearing debt, a 20 billion yen straight bond was reduced while a 20 billion yen corporate bond was issued with the amount remaining the same. Otherwise, a commercial paper was issued by a subsidiary company focusing on the repayment of long-term debt. This led to a decrease of 1.9 billion yen to 372.1 billion yen from the end of the previous fiscal year. The debt-to-equity ratio was slightly down at 0.76.
Interest bearing debt for the end of this period is projected to be 350.0 billion yen, with the liquidation of claim credit around 25.0 billion yen scheduled in the fourth quarter.
Negative goodwill (formerly consolidation adjustment account) of 1.6 billion has been amortized in relation to the burden of fixed costs at SIA, and approximately 0.5 billion yen is still to be amortized during this period for Isuzu.
The shareholders’ equity section of the balance sheets is now referred to as the net assets section due to the enforcement of the Corporate Law. With this revision minority interest in consolidated subsidiaries is included in net assets, which totaled 489.0 billion yen. the shareholders' equity to total assets ratio , which shows a percentage of net assets excluding minority interest in consolidated subsidiaries, was 36.7%, up 2.2% from the end of the previous fiscal year.