Review of Operations Review of SAP's Group Operations Assets ASSETS
GROWTH OF ASSETS; ANALYSIS OF BALANCE SHEET
For fiscal year 2006, we adopted the classified balance sheet format. Items are classified as current or non-current, depending on when they are expected to be paid or realized. There are more details about our changeover to this format in Note 1 in the Notes to Consolidated Financial Statements section.
In 2006, our total assets rose 5% from €9,040 million
to €9,503 million (2004: €7,585 million). Current assets
declined slightly in 2006, chiefly as a result of a decrease in
liquid assets. Our non-current assets increased as we
acquired intellectual property from third parties. Total non-current
assets grew 26% to €3,179 million (2005: €2,520 million;
2004: €2,735 million).
Our rolling 12-month average collection period, which is
measured in days’ sales outstanding (DSO), was unchanged
at 68 days in 2006 (2004: 71 days).
Strong net income growth reinforced shareholders’ equity,
adding €354 million. The equity ratio (that is, the ratio of
shareholders’ equity to total assets) increased one percentage
point from 64% in 2005 to 65% in 2006 (2004: 61%).
