Originally posted by Blue Actually, the complete corporate financial structure at that level is quite complex especially factory in pension funds, physical assets, operating capital etc. However, my earlier "quip" about the cup of coffee had to do with this.
Global 500 2010: Global 500 401-500 - FORTUNE on CNNMoney.com
The acquisition of Pentax alone will equal nearly half the profit margin from 2010. Then of course they will have to have operating capital. At this point it is unclear if the Philippine factory or the Vietnam factory are included etc. The good news is that Ricoh is a Global 500 company at 402 in 2010.
Current net profit is not necessarily a good indicator of ability to make an acquisition, particularly of a complementary and profitable business. Businesses must take a longer view than that.
But this discussion is getting out of hand and I don't have time to write a precise of what's in Ricoh's public docs.
Rather than the CNN snapshot you linked to, I'll refer those interested in the financial side to Ricoh's Web site, where you can dig into 2010 annual report, FY 2011 snapshot figures, and even guidance for 2012 - guidance that did not include a Pentax acquisition.
The annual report also discusses their product development thinking. If it isn't just fluff, I think it's good news for us.