Improving ROE through ROWC and ROIC management and improving working capital turnover
First written in FY2018. 11 of 21 entries say "Worsened", first in FY2022-Q2. Latest entry: 2026-11-13.
Restar moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
5 other companies' latest entry also says "Worsened".
- 2026-11-13WorsenedResults
「営業活動の結果使用した資金は、22,722百万円（前年同期は9,814百万円の獲得）となりました。これは主に、税金等調整前中間純利益15,720百万円の計上、仕入債務の増加18,776百万円があったものの、棚卸資産の増加36,962百万円、売上債権の増加18,246百万円によるものであります。」
運転資本管理について、棚卸資産・売上債権の増加により営業キャッシュ・フローが前年同期の獲得から使用へ転じた。 - FY2026WorsenedAnnual report
「Cash and cash equivalents used in operating activities (hereinafter, “funds”) amounted to ¥3,282 million, compared with ¥20,196 million provided in the previous year. This was mainly attributable to profit before income taxes of ¥12,977 million and a ¥15,557 million increase in accounts payable, despite increases of ¥20,414 million in trade receivables and contract assets and ¥9,422 million in inventories.」
Operating cash flow deteriorated from an inflow of ¥20,196 million in the previous year to an outflow of ¥3,282 million, with increases of ¥20,414 million in trade receivables and contract assets and ¥9,422 million in inventories weighing on cash flow. - 2026-05-14WorsenedRevision to earnings forecast
「営業活動の結果使用した現金及び現金同等物(以下「資金」という)は、3,282百万円(前年度は20,196百万円の獲得)となりました。」
営業キャッシュ・フローは前年度の202億円の獲得から32億円の使用に転じ、売上債権と棚卸資産の増加が資金流出要因となった。 - FY2026-H1WorsenedAnnual report
「Funds provided by operating activities amounted to ¥9,814 million, compared with ¥20,352 million provided in the same period of the previous year. This was mainly attributable to interim profit before income taxes of ¥3,054 million, a ¥9,452 million increase in accounts payable, and a ¥4,682 million decrease in trade receivables, despite a ¥6,015 million increase in inventories.」
Operating cash flow decreased from ¥20,352 million in the same period of the previous year to ¥9,814 million, while inventories increased by ¥6,015 million. The decrease in trade receivables and increase in accounts payable contributed to cash generation. - FY2025-H1AdvancedAnnual report
「Cash and cash equivalents provided by operating activities (hereinafter, “funds”) amounted to ¥20,352 million, compared with an outflow of ¥977 million in the same period of the previous year. This was mainly attributable to a ¥7,020 million decrease in the allowance for doubtful accounts, a ¥8,050 million decrease in trade receivables, a ¥7,308 million decrease in fixed operating receivables, a ¥9,999 million decrease in inventories, and a ¥7,849 million decrease in other accounts receivable.」
In terms of working capital management, operating cash flow turned from an outflow of ¥977 million in the same period of the previous year to an inflow of ¥20,352 million, reflecting decreases in trade receivables, fixed operating receivables, inventories and other accounts receivable. - FY2024AdvancedAnnual report
「Cash and cash equivalents provided by operating activities increased by ¥15,668 million. This was mainly attributable to profit before income taxes of ¥12,000 million, a ¥12,943 million decrease in inventories, and a ¥6,647 million decrease in accounts payable.」
Inventories decreased by ¥12,943 million, and operating cash flow turned from an outflow of ¥363 million in the previous year to an inflow of ¥15,668 million. Accounts receivable increased. - FY2024-Q3AdvancedAnnual report
「Total assets at the end of the third quarter of the current consolidated accounting period increased by ¥3,943 million from the end of the previous consolidated fiscal year to ¥273,370 million. This was mainly due to a ¥4,606 million increase in cash and deposits, a ¥1,190 million decrease in accounts receivable, a ¥3,297 million increase in electronically recorded monetary claims, and a ¥4,854 million decrease in merchandise and finished goods.」
In terms of working capital management, merchandise and finished goods decreased by ¥4,854 million and accounts receivable by ¥1,190 million, while cash and deposits increased by ¥4,606 million. Electronically recorded monetary claims and other accounts receivable increased. - FY2024-Q2Decrease in operating cash usedAnnual report
「Cash and cash equivalents used in operating activities (hereinafter, “funds”) amounted to ¥977 million (¥16.251 billion used in the previous fiscal year). This was mainly due to quarterly income before income taxes of ¥5.916 billion, a ¥4.414 billion decrease in foreign exchange gains and losses, a ¥3.981 billion increase in trade receivables, a ¥6.132 billion decrease in inventories, a ¥5.454 billion decrease in trade payables and a ¥6.969 billion increase in accrued income.」
Funds used in operating activities decreased from ¥16.251 billion in the same period of the previous year to ¥977 million, while inventories decreased by ¥6.132 billion. Meanwhile, trade receivables and accrued income increased. - FY2024-Q1WorsenedAnnual report
「This was mainly due to a ¥703 million decrease in cash and deposits, a ¥1.585 billion increase in accounts receivable, an ¥892 million increase in electronically recorded monetary claims, a ¥921 million increase in merchandise and finished goods, a ¥4.316 billion increase in accounts receivable included in other current assets, a ¥787 million increase in machinery and equipment, and a ¥609 million increase in construction in progress.」
Accounts receivable, electronically recorded monetary claims, merchandise and finished goods, among other items, increased, resulting in a ¥10.028 billion increase in total assets from the end of the previous consolidated fiscal year. Short-term borrowings also increased by ¥10.762 billion. - FY2023WorsenedAnnual report
「Cash and cash equivalents used in operating activities (hereinafter, “funds”) amounted to ¥363 million (¥26.625 billion used in the previous fiscal year). This was mainly due to income before income taxes of ¥10.425 billion, a ¥2.854 billion increase in depreciation and amortization, a ¥19.209 billion increase in inventories and a ¥6.221 billion increase in accrued expenses.」
Operating cash flow improved from ¥26.5 billion used in the previous year to ¥363 million used, but inventories increased by ¥19.209 billion and the burden on working capital continued. - FY2023-Q3WorsenedAnnual report
「This was mainly due to a ¥3.372 billion decrease in cash and deposits, a ¥4.837 billion increase in accounts receivable, a ¥4.153 billion increase in electronically recorded monetary claims and a ¥24.994 billion increase in merchandise and finished goods.」
Accounts receivable, electronically recorded monetary claims, merchandise and finished goods increased, with merchandise and finished goods increasing particularly sharply by ¥24.994 billion. Total assets increased by ¥42.585 billion from the end of the previous consolidated fiscal year. - FY2023-Q2WorsenedAnnual report
「Cash and cash equivalents used in operating activities (hereinafter, “funds”) amounted to ¥16.251 billion (¥7.711 billion used in the previous fiscal year). This was mainly due to quarterly income before income taxes of ¥7.836 billion, a ¥13.607 billion increase in trade receivables, a ¥15.699 billion increase in inventories and a ¥3.003 billion increase in trade payables.」
As increases in trade receivables and inventories expanded, funds used in operating activities increased from ¥7.711 billion in the same period of the previous year to ¥16.251 billion, indicating deterioration in working capital. - FY2023-Q1WorsenedAnnual report
「This was mainly due to increases of ¥6.389 billion in cash and deposits, ¥7.662 billion in accounts receivable and ¥13.462 billion in inventories.」
Accounts receivable and inventories increased, resulting in a ¥39.310 billion increase in total assets from the end of the previous consolidated fiscal year. The reported asset growth indicates deterioration in working capital. - FY2022-Q3WorsenedAnnual report
「This was mainly due to a ¥6.916 billion decrease in cash and deposits, a ¥16.113 billion increase in notes, accounts receivable and contract assets, a ¥21.011 billion increase in inventories and a ¥7.511 billion increase in property, plant and equipment.」
Amid asset growth, including the impact of consolidating Partec and other subsidiaries, trade receivables increased by ¥16.113 billion and inventories by ¥21.011 billion, indicating deterioration in working capital. - FY2022-Q2WorsenedAnnual report
「Cash and cash equivalents used in operating activities (hereinafter, “funds”) amounted to ¥7.711 billion (¥7.146 billion provided in the previous fiscal year). This was mainly due to quarterly income before income taxes of ¥4.988 billion, a ¥5.507 billion increase in trade receivables, an ¥8.814 billion increase in inventories and a ¥4.816 billion increase in trade payables.」
Due to increases in trade receivables and inventories, operating cash flow turned from ¥7.146 billion provided in the same period of the previous year to ¥7.711 billion used, indicating deterioration in working capital. - FY2021AdvancedAnnual report
「Cash and cash equivalents provided by operating activities (hereinafter, “funds”) amounted to ¥20.133 billion (¥16.591 billion provided in the previous fiscal year). This was mainly due to income before income taxes of ¥4.334 billion, a ¥6.004 billion decrease in trade receivables, a ¥6.294 billion decrease in inventories, a ¥1.586 billion increase in trade payables and ¥4.114 billion in income taxes paid.」
A ¥6.004 billion decrease in trade receivables and a ¥6.294 billion decrease in inventories generated operating cash flow of ¥20.133 billion, demonstrating measurable progress in working capital management. - FY2021-Q3AdvancedAnnual report
「Total assets at the end of the third quarter of the current consolidated accounting period decreased by ¥10.320 billion from the end of the previous consolidated fiscal year to ¥186.733 billion. This was mainly due to an increase of ¥17.653 billion in cash and deposits, a decrease of ¥10.703 billion in notes and accounts receivable, and a decrease of ¥17.736 billion in investment securities.」
In relation to working capital and asset efficiency, notes and accounts receivable decreased by ¥10.703 billion, while cash and deposits increased by ¥17.653 billion. - FY2021-Q2AdvancedAnnual report
「Cash provided by operating activities was ¥7.146 billion (¥3.177 billion provided in the same period of the previous year). This was mainly attributable to income before income taxes of ¥2.581 billion, a decrease in trade receivables of ¥11.539 billion and a decrease in inventories of ¥716 million.」
During the first six months of the current fiscal year, trade receivables decreased by ¥11.539 billion and inventories by ¥716 million, resulting in operating cash flow of ¥7.146 billion. This indicates progress in working capital management. - FY2019AdvancedAnnual report
「In addition to changes in the distribution channels of existing customers, the Company reviewed existing businesses with an emphasis on profitability and capital efficiency, achieving reductions of ¥11.513 billion in notes and accounts receivable and ¥1.879 billion in merchandise and finished goods.」
Regarding capital efficiency and working capital management, measurable progress is reported through reductions of ¥11.513 billion in trade receivables and ¥1.879 billion in merchandise and finished goods. - FY2019-Q1AdvancedAnnual report
「Through the restructuring of our business portfolio, centered on our core semiconductor and electronic components businesses, the gross profit margin rose from 5.6% in the same period of the previous year to 7.2%, while the operating margin rose from 1.4% to 2.0%.」
Regarding the restructuring of the business portfolio to improve capital productivity and margins, specific increases in the gross profit margin and operating margin are reported. - FY2018First statedAnnual report
「ROE for the current consolidated fiscal year was 5.6%. To achieve 9% to 10% over the medium term, we will use ROWC (return on working capital) as a management metric in the trading business and ROIC (return on invested capital) in the EMS business, and will work continuously to improve ROE by raising the gross profit margin and advancing improvements in working capital turnover through rigorous management of trade receivables and inventories.」
To achieve ROE of 9% to 10%, the Company presents for the first time a systematic measure to improve working capital turnover by using ROWC in the trading business and ROIC in the EMS business as management metrics and managing trade receivables and inventories.