Equity Ratio at 57.6% Further Improvement in Liquidity  Working Capital Again Improved  Once again, the capital structure was successfully improved  in 2004. Despite the 32.8% increase in the balance sheet total from € 700.1 million to € 929.6 million, the equity ratio was up from 54.7% to 57.6%. This development underscores the strong financial position  of the PUMA Group.  As a result of the strongly improved cashflow, cash and cash equivalents almost doubled to € 369.3 million. Concurrently,  bank debt was reduced from € 16.8 million to € 12.9 million.  As a result, net liquidity improved from € 173.8 million to  € 356.4 million.  Working capital amounted to 9.7% of sales after 12.2% in the previous year. In absolute figures, the working capital declined  by 4.7% at year-end, falling from € 155.7 million to  € 148.4 million. This development, which surpassed expectations, is primarily due to marginal inventory build-ups. A higher amount of merchandise was received in December 2003, whereas the year-end 2004 indicates a shift to January 2005. The calculation of working capital includes inventories, plus current receivables, less current non-interest-bearing liabilities and provisions, to the extent attributable to the operational area. Inventories were up by 2.5% to € 201.1 million and receivables rose by 8% to € 189.6 million. This development confirms PUMA’s systematic and effective working capital management.  25 2000 2001 2002 2003 2004 Balance sheet total/ Equity ratio (million €) Equity ratio Balance sheet total 0 35% 200 40% 400 45% 600 50% 800 55% 1,000 60% 2000 2001 2002 2003 2004 Working capital (million €) in % of sales Working capital 0 0% 40 5% 80 10% 120 15% 160 20% Foreword | Mission |  Management Report  | Share | Marketing | Consolidated Financial Statements - IFRS - | Report of Supervisory Board | Board of Management