Assets
Growth of Assets; Analysis of Balance Sheet
In 2007, our total assets rose 9% from the previous year’s €9,503 million to €10,366 million (2005: €9,040 million). Current assets increased slightly, chiefly as a result of a rise in net accounts receivable. Our long-term assets increased as we acquired intellectual property from third parties. Total long-term assets grew 25% to €3,958 million (2006: €3,179 million; 2005: €2,520 million).
We reduced our rolling 12-month average collection period, which is measured in days’ sales outstanding (DSO), by two days to 66 (2006: 68; 2005: 68). This was the result of further optimization of our receivables management efforts.
Strong net income growth reinforced shareholders’ equity in 2007, adding €367 million. The equity ratio (that is, the ratio of shareholders’ equity to total assets) decreased from 65% to 63% (2005: 64%), because while shareholders’ equity grew 6%, our total liabilities grew 15%.
