Management Positions Growth in Purchased Receivables as an Investment in Future Earnings
First written in FY2026-H1. 2 of 5 entries say "Advanced", first in 2026-03-16. Latest entry: FY2026.
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- FY2026AdvancedAnnual report
「Although the increase in purchased receivables is presented in accounting terms as an outflow from operating activities, for our Group it represents the accumulation of earning assets to meet the funding needs of healthcare and nursing-care operators, and we recognize it as contributing to future expansion of the earnings base.」
For the full year, the Company accumulated ¥1,305,249 thousand in purchased receivables and positioned the ¥804,085 thousand negative operating cash flow as investment toward future expansion of the earnings base. - FY2026-H1First statedAnnual report
「Cash flow from operating activities was an outflow of ¥657,303 thousand, compared with an inflow of ¥1,334,418 thousand in the same period of the previous year. This was mainly because ¥846,333 thousand was invested as purchased receivables increased, while the decrease in operating loans generated inflows of ¥134,498 thousand, among other factors. The cash outflow associated with the increase in purchased receivables has an investment-like nature that will lead to increased future fee income and other revenue. We therefore recognize the negative operating cash flow as a positive move toward expanding our earnings base.」
The Company explicitly positions the negative operating cash flow resulting from increased purchased receivables as investment in future fee income and expansion of the earnings base.