Earnings volatility due to high fixed-cost levels
First written in FY2020. 2 of 3 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2020: 7 of 20 companies on the "Worse" side.
8 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「The company has a high level of fixed costs, including personnel expenses and depreciation, and a low variable-cost ratio. Consequently, while the increase in profit when sales rise is greater than in other business models, the decrease in profit when sales fall is also greater than in other business models, resulting in a tendency toward greater earnings volatility.」
In addition to earnings volatility arising from its fixed-cost-centered business structure, the company continues to disclose the potential impact on impairment losses on fixed assets and the recoverability of deferred tax assets. - FY2021RestatedAnnual report
「The company has a high level of fixed costs, including personnel expenses, and a low variable-cost ratio. Consequently, while the increase in profit when sales rise is greater than in other business models, the decrease in profit when sales fall is also greater than in other business models, resulting in a tendency toward greater earnings volatility.」
The company continues to disclose the risk of earnings volatility arising from its fixed-cost-centered business structure. - FY2020First statedAnnual report
「The company has a high level of fixed costs, including personnel expenses, and a low variable-cost ratio. Consequently, while the increase in profit when sales rise is greater than in other business models, the decrease in profit when sales fall is also greater than in other business models, resulting in a tendency toward greater earnings volatility.」
The company identifies as a risk the structure of its business model, which is centered on fixed costs and has a low variable-cost ratio, causing changes in sales to have a substantial impact on profit.