Maintaining on-hand liquidity equivalent to approximately twice monthly sales and an A-equivalent credit rating
First written in FY2022. 1 of 5 entries say "Softened", first in FY2024. Latest entry: FY2026.
The whole theme swung hardest in 2024: 3 of 34 companies on the "Worse" side.
9 other companies' latest entry also says "Other".
- FY2026Increase in cash liquidity and disclosure of financial metricsAnnual report
「The Group's primary working capital requirements arise from operating expenses, including construction costs in the construction business, manufacturing costs in the manufacturing and sale of paving materials business, and selling, general and administrative expenses, including investment in human resources. In addition, growth investments create funding requirements for capital expenditures to maintain and grow the core businesses, as well as strategic investments aimed at expanding the Group's business areas through M&A and other means.」
The company reiterated its financial policy of using cash flows from operating activities as its primary source of funds, with benchmarks of an equity ratio of approximately 50%, a debt-to-equity ratio of no more than 0.3x, cash liquidity equivalent to approximately 2x monthly sales, and a credit rating equivalent to BBB+. Cash and cash equivalents amounted to ¥14,437 million. - 2026-06-01RestatedFinancial results presentation
「We will maintain healthy on-hand liquidity equivalent to approximately 2 months of sales.」
The Company continues to target on-hand liquidity equivalent to approximately 2 months of sales. - FY2026-H1Increase in liquidityAnnual report
「After also adjusting for translation differences related to cash and cash equivalents, the balance of cash and cash equivalents at the end of the current interim consolidated accounting period increased by ¥9,378 million from the end of the previous consolidated fiscal year to ¥17,130 million.」
Cash and cash equivalents increased by ¥9,378 million from the end of the previous consolidated fiscal year to ¥17,130 million. The company disclosed the actual level of cash liquidity, but did not state any change to the benchmark of approximately 2x monthly sales. - FY2024SoftenedAnnual report
「We believe that, in view of the upfront-payment business model, the increasing scale of contract work and the level of financial soundness expected of a company responsible for developing social infrastructure, the Group should secure cash liquidity equivalent to approximately 2x monthly sales, including funds for working capital. Funding is based primarily on cash flows from operating activities, but the Group also expects to raise funds or secure cash liquidity as necessary through long-term borrowings, overdraft facilities, commitment lines and other means. Accordingly, the Group will seek to maintain and improve financial soundness, using a credit rating equivalent to “BBB+” as a benchmark.」
While maintaining its policy of holding cash liquidity equivalent to approximately 2x monthly sales, the company changed its benchmark credit rating from the previous level equivalent to A to one equivalent to BBB+. - FY2022First statedAnnual report
「We believe that, in view of the upfront-payment business model, the increasing scale of contract work and the level of financial soundness expected of a company responsible for developing social infrastructure, the Group should secure cash liquidity equivalent to approximately 2x monthly sales, including funds for working capital.」
The company set out, for the first time in specific terms, a policy of maintaining and improving financial soundness, using a credit rating equivalent to A as a benchmark, by utilizing long-term borrowings, overdraft facilities, commitment lines and other sources of funding as necessary.