Improving Deteriorated KPIs and Operating Cash Flow
First written in FY2018. 11 of 30 entries say "Advanced", first in FY2019-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2018: 2 of 21 companies on the "Worse" side.
12 other companies' latest entry also says "Other".
- FY2026Equity ratio above target, lower margins and improved inventory turnoverAnnual report
「The inventory turnover period was 8.5 months (9.4 months in the previous fiscal year). …The equity ratio was 72.4% (69.2% in the previous fiscal year). …The ordinary income margin on net sales was 7.3% (14.4% in the previous fiscal year).」
The inventory turnover period improved and the equity ratio exceeded the 60% target, while the ordinary income margin on net sales declined from 14.4% to 7.3%, below the 15% target. - FY2026-H1Equity ratio and ordinary income margin above target, but deteriorating inventory turnoverAnnual report
「The inventory turnover period was 10.2 months. We will continue working to restore it to a normal level (target: 6.0 months). The equity ratio was 73.6% at the end of the interim accounting period (69.2% at the end of the previous fiscal year). …The ordinary income margin on net sales also improved to 15.1% (13.5% in the previous interim accounting period). We will continue working to secure earnings and maintain them at a normal level (target: 15.0%).」
The equity ratio was 73.6% and the ordinary income margin on net sales was 15.1%, exceeding the respective targets of 60% and 15%. Meanwhile, the inventory turnover period was 10.2 months, still above the 6.0-month target. - FY2025AdvancedAnnual report
「The inventory turnover period was 9.4 months (12.2 months in the previous fiscal year). …The equity ratio was 69.2% (62.6% in the previous fiscal year). …The ordinary income margin on net sales was 14.4% (6.9% in the previous fiscal year).」
The inventory turnover period, equity ratio and ordinary income margin on net sales all improved from the previous fiscal year. The equity ratio exceeded the 60% target, and the ordinary income margin approached the 15% target. - FY2025-H1Equity ratio above target and continued profitability improvementAnnual report
「The equity ratio was 65.5% at the end of the interim accounting period (62.6% at the end of the previous fiscal year). This was due to total assets declining by ¥357.195 million from the end of the previous fiscal year and the exercise of the fifth series of stock acquisition rights for ¥54.000 million during the interim accounting period, despite the recognition of an interim net loss of ¥186.383 million. …The ordinary income margin on net sales was also 13.5% (13.4% in the previous interim accounting period). We will continue working to maintain earnings and restore them to a normal level (target: 15.0%).」
The equity ratio rose from 62.6% to 65.5%, exceeding the 60.0% target. The ordinary income margin on net sales also improved from 13.4% to 13.5%, but remained below the 15.0% target. - FY2024AdvancedAnnual report
「The inventory turnover period was 12.2 months (13.3 months in the previous fiscal year), due to an ¥85.765 million reduction in inventory during the fiscal year. …The equity ratio was 62.6% (51.2% in the previous fiscal year). …The ordinary income margin on net sales also improved to 6.9% (negative 0.7% in the previous fiscal year).」
The inventory turnover period improved from 13.3 months to 12.2 months, and the equity ratio exceeded the 60% target at 62.6%. The ordinary income margin on net sales also improved, but remained below the 15% target. - FY2024-Q3AdvancedAnnual report
「As a result, the inventory turnover period was 12.9 months. We will continue working to restore it to a normal level (target: 6.0 months). The equity ratio was 59.0% (51.2% at the end of the previous fiscal year). …The ordinary income margin on net sales was also negative 5.1% (negative 24.5% in the same period of the previous year). We will continue working to maintain earnings and restore them to a normal level (target: 15.0%).」
The inventory turnover period was 12.9 months, the equity ratio was 59.0% and the ordinary income margin on net sales was negative 5.1%. The equity ratio and profitability improved, and the inventory turnover period shortened from 13.3 months at the end of the previous fiscal year, but none of the targets was achieved. - FY2024-Q2Overall KPI improvementAnnual report
「As a result, the inventory turnover period was 12.2 months. We will continue working to restore it to a normal level (target: 6.0 months). …The equity ratio was 58.4% (51.2% at the end of the previous fiscal year). …The ordinary income margin on net sales also improved to 13.4% (negative 4.5% in the same period of the previous year).」
The inventory turnover period shortened to 12.2 months, the equity ratio improved to 58.4% and the ordinary income margin on net sales improved to 13.4%. None had reached the targets of 6.0 months for inventory, 60.0% for the equity ratio and 15.0% for the ordinary income margin, but progress toward the targets was evident. - FY2024-Q1Improved equity ratio and profitability, but increased inventoryAnnual report
「During the three months ended the first quarter, inventory amounted to ¥917.951 million (¥855.972 million at the end of the previous fiscal year), a 7.2% increase from the end of the previous fiscal year. This was due to an increase in inventories of new products and other items. The equity ratio was 51.7% (51.2% at the end of the previous fiscal year). The ordinary income margin on net sales was also negative 74.2% (negative 199.2% in the same period of the previous year).」
Inventory increased 7.2% due to new product inventories and other factors, while the equity ratio improved from 51.2% to 51.7% and the ordinary income margin on net sales improved from negative 199.2% in the same period of the previous year to negative 74.2%. - FY2023Improved inventory turnover, slight decline in the equity ratio and deteriorating profitabilityAnnual report
「The inventory turnover period was 13.3 months. Although the turnover rate improved slightly year on year, the inventory period increased because cost of sales declined during the fiscal year. The equity ratio was 51.2% (51.9% in the previous fiscal year). The ordinary income margin on net sales was also negative 0.7% (2.3% in the previous fiscal year).」
The inventory turnover period improved from 20.7 months in the third quarter to 13.3 months for the full fiscal year, but remained above the 6.0-month target. The equity ratio declined slightly to 51.2%, and the ordinary income margin on net sales deteriorated to negative 0.7%. - FY2023-Q3Deteriorating inventory turnover, improved equity ratio and deteriorating profitabilityAnnual report
「The inventory turnover period increased to 20.7 months (11.4 months at the end of the previous fiscal year).」
The inventory turnover period deteriorated from 11.4 months to 20.7 months, while the equity ratio improved from 51.9% to 53.7% and the ordinary income margin on net sales deteriorated from negative 6.1% in the same period of the previous year to negative 24.5%. - FY2023-Q2Improved equity ratio, but deteriorating profitabilityAnnual report
「The equity ratio was 54.5% (51.9% at the end of the previous fiscal year). This was mainly due to fixed liabilities declining by ¥75.481 million through scheduled repayments and other factors, while net assets increased by ¥39.987 million as a result of the exercise of the third series of stock acquisition rights for ¥7.800 million, a ¥114.442 million decrease in treasury stock resulting from the provision of shares under the employee stock benefit program and the recognition of a net loss for the quarter of ¥59.389 million. We will continue working to restore it to a normal level (target: 60.0%). The ordinary income margin on net sales was also negative 4.5% (13.9% in the same period of the previous year).」
The equity ratio improved from 51.9% to 54.5%, approaching the 60.0% target, while the ordinary income margin on net sales deteriorated from 13.9% in the same period of the previous year to negative 4.5%. - FY2023-Q1Improved equity ratio, but deterioration in inventory and profitability indicatorsAnnual report
「During the three months ended the first quarter, inventory, one component of the indicator, amounted to ¥1,103.374 million (¥989.551 million at the end of the previous fiscal year), an 11.5% increase from the end of the previous fiscal year. This was due to an increase in inventories of new products and other items. We will continue working to restore it to a normal level (target: 6.0 months). The equity ratio was 53.7% (51.9% at the end of the previous fiscal year), due to total assets declining by ¥772.777 million from the end of the previous fiscal year and a net loss for the quarter of ¥344.636 million recorded during the three months ended the first quarter. The ordinary income margin on net sales was also negative 199.2% (negative 150.9% in the same period of the previous year).」
The equity ratio improved from 51.9% to 53.7%, while inventory increased 11.5% and the ordinary income margin on net sales deteriorated from negative 150.9% in the same period of the previous year to negative 199.2%. The inventory turnover period target remained 6.0 months. - FY2022Improved equity ratio and profitability, but deterioration in the inventory turnover periodAnnual report
「The inventory turnover period was 11.4 months. …The equity ratio improved to 51.9% (32.0% in the previous fiscal year). …The ordinary income margin on net sales also improved to 2.3% (0.9% in the previous fiscal year).」
The equity ratio and ordinary income margin on net sales improved, while the inventory turnover period was 11.4 months, above the 6.0-month target. - FY2022-Q3Improved equity ratio and profitability, but deterioration in the inventory turnover periodAnnual report
「The inventory turnover period increased to 16.7 months (9.9 months at the end of the previous fiscal year). This was due to increased purchases and production of finished goods for sale in the fourth quarter during the nine months ended the third quarter, together with a decrease in cost of sales. We will continue working to restore it to a normal level (target: 6.0 months). The equity ratio was 49.4% (32.0% at the end of the previous fiscal year). This was primarily due to the exercise of stock acquisition rights for ¥656.551 million and the provision of shares under the employee stock benefit program. We will continue working to restore it to a normal level (target: 60.0%). The ordinary income margin on net sales was also negative 6.1% (negative 20.2% in the same period of the previous year). This was due to an 11.9% year-on-year increase in net sales, a 13.3 percentage-point decline in the cost-of-sales ratio and efforts to reduce expenses. We will continue working to restore the KPIs to normal levels (target: 15.0%).」
The equity ratio improved to 49.4% and the ordinary income margin on net sales improved to negative 6.1%, while the inventory turnover period deteriorated to 16.7 months. None reached the targets of an equity ratio of 60.0%, an ordinary income margin of 15.0% and an inventory turnover period of 6.0 months. - FY2022-Q2Partial KPI improvement, but deterioration in the inventory turnover periodAnnual report
「The inventory turnover period increased to 14.1 months (9.9 months at the end of the previous fiscal year) due to increased purchases for the launch of new products and a decrease in cost of sales during the six months ended the second quarter. We will continue working to restore it to a normal level (target: 6.0 months). The equity ratio was 40.1% (32.0% at the end of the previous fiscal year). The ordinary income margin on net sales was also 13.9% (negative 11.9% in the same period of the previous year).」
The equity ratio and ordinary income margin on net sales improved, while the inventory turnover period deteriorated from 9.9 months to 14.1 months. The targets were 6.0 months for inventory, 60.0% for the equity ratio and 15.0% for the ordinary income margin, and none was achieved. - FY2022-Q1Partial KPI improvement, but deterioration in inventory and profitability indicatorsAnnual report
「The inventory turnover period increased to 10.3 months (9.9 months at the end of the previous fiscal year) due to higher purchases for the launch of new products during the three months ended the first quarter. We will continue working to restore it to a normal level (target: 6.0 months). The equity ratio was 33.6% (32.0% at the end of the previous fiscal year). This was due to total assets declining by ¥488.353 million from the end of the previous fiscal year and a net loss for the quarter of ¥379.998 million recorded during the three months ended the first quarter, despite the exercise of the first series of stock acquisition rights for ¥288.205 million. We will continue working to restore it to a normal level (target: 60.0%). The ordinary income margin on net sales was also negative 150.9% (negative 144.5% in the same period of the previous year).」
The equity ratio improved from 32.0% to 33.6%, while the inventory turnover period increased from 9.9 months to 10.3 months and the ordinary income margin on net sales deteriorated from negative 144.5% in the same period of the previous year to negative 150.9%. - FY2021AdvancedAnnual report
「The inventory turnover period improved to 9.9 months (12.3 months in the previous fiscal year; 15.0 months in the fiscal year before that). The equity ratio improved to 32.7% (30.8% in the previous fiscal year; 24.7% in the fiscal year before that). The ordinary income margin on net sales also improved to 0.9% (0.6% in the previous fiscal year; negative 31.1% in the fiscal year before that).」
All 3 indicators, the inventory turnover period, equity ratio and ordinary income margin on net sales, improved from the previous fiscal year. However, they remained below the targets of 6.0 months, 60.0% and 15.0%, respectively. - FY2021-Q3WorsenedAnnual report
「The inventory turnover period shortened to 11.7 months (12.3 months at the end of the previous fiscal year). This was because, although purchases for the launch of new products increased during the nine months ended the third quarter, costs expanded. The equity ratio was 27.3% (30.8% at the end of the previous fiscal year). The ordinary income margin on net sales was also negative 18.9% (negative 12.4% in the same period of the previous year).」
The inventory turnover period shortened from the end of the previous fiscal year, while the equity ratio declined from 30.8% to 27.3% and the ordinary income margin on net sales deteriorated from negative 12.4% in the same period of the previous year to negative 18.9%. - FY2021-Q2Partial KPI improvement, but deterioration in the equity ratio and profitabilityAnnual report
「The inventory turnover period shortened to 11.4 months (12.3 months at the end of the previous fiscal year). This reflected higher purchases for the launch of new products during the six months ended the second quarter, although cost of sales also increased. We will continue working to restore it to a normal level (target: 6.0 months). The equity ratio was 29.6% (30.8% at the end of the previous fiscal year), due to a net loss for the quarter of ¥160.990 million recorded during the six months ended the second quarter, despite efforts to reduce total assets. We will continue working to restore it to a normal level (target: 60.0%). The ordinary income margin on net sales was also negative 11.0% (2.4% in the same period of the previous year). Although ordinary earnings improved as a result of expense reductions, this was due to a 24.8% year-on-year decline in net sales. We will continue working to restore the KPIs to normal levels (target: 15.0%).」
The inventory turnover period shortened from 12.3 months to 11.4 months, but remained above the 6.0-month target. The equity ratio was 29.6% and the ordinary income margin on net sales was negative 11.0%, with the gap from the respective targets continuing. - FY2021-Q1WorsenedAnnual report
「The inventory turnover period increased to 13.2 months (12.3 months at the end of the previous fiscal year). This was due to an increase in purchases for the launch of new products during the nine months ended the first quarter. We will continue working to restore it to a normal level (target: 6.0 months). The equity ratio was 25.8% (30.8% at the end of the previous fiscal year), due to the recognition of a net loss for the quarter of ¥335.295 million during the three months ended the first quarter. The ordinary income margin on net sales was also negative 136.5% (negative 121.4% in the same period of the previous year).」
The KPIs were an inventory turnover period of 13.2 months, an equity ratio of 25.8% and an ordinary income margin on net sales of negative 136.5%, deteriorating from the end of the previous fiscal year and the same period of the previous year. The respective targets were 6.0 months, 60.0% and 15.0%. - FY2020-Q3AdvancedAnnual report
「As a result of continuing to rigorously manage budget-to-actual variances in accordance with the expense-use policy, selling, general and administrative expenses for the nine months ended the third quarter decreased 10.9% from the same period of the previous year, improving operating, ordinary and net earnings for the quarter.」
Against the policy of improving earnings and operating cash flow, selling, general and administrative expenses were reduced by 10.9% and the losses were narrowed. However, earnings remained negative. - FY2020-Q2Earnings turned positive while operating cash flow deterioratedAnnual report
「As a result of continuing to rigorously manage budget-to-actual variances in accordance with the expense-use policy, selling, general and administrative expenses for the six months ended the second quarter decreased 11.5% from the same period of the previous year, and operating income, ordinary income and net income for the quarter all improved to positive figures.」
Earnings turned positive as a result of expense reductions, while operating cash flow represented an outflow of ¥505.294 million, resulting in mixed progress on improving operating cash flow. - FY2020-Q1AdvancedAnnual report
「In terms of earnings, although the cost of sales ratio increased, the company continued to thoroughly manage its budget against actual results based on its expense policy. As a result, selling, general and administrative expenses were reduced by 20.4% from the cumulative period of the same quarter of the previous year, narrowing the operating loss, ordinary loss and net loss for the quarter.」
Against the improvement policy, the company reported progress through a 20.4% reduction in selling, general and administrative expenses based on budget-to-actual management and a narrowing of operating, ordinary and net losses. - FY2019WorsenedAnnual report
「The inventory turnover period (approximately 15.0 months for the fiscal year, target: 6.0 months), equity ratio (24.7% at fiscal year-end, target: 60.0%) and ordinary income margin on net sales (negative 31.1% for the fiscal year, target: 15.0%) were identified as key performance indicators (KPIs).」
Although KPI targets were clearly stated, the inventory turnover period was 15.0 months, the equity ratio was 24.7% and the ordinary income margin on net sales was negative 31.1%, indicating a continuing gap from the improvement targets. - FY2019-Q3AdvancedAnnual report
「On the earnings side, we continued to rigorously manage budget-to-actual variances in accordance with our expense-use policy and reduced selling, general and administrative expenses by 21.1% year on year in the third quarter. However, because net sales are typically low in the third quarter and the cost-of-sales ratio increased, we recorded an operating loss of ¥434.397 million (operating loss of ¥864.299 million in the same quarter of the previous year), an ordinary loss of ¥441.808 million (ordinary loss of ¥869.173 million in the same quarter of the previous year) and a net loss for the quarter of ¥349.777 million (net loss for the quarter of ¥648.877 million in the same quarter of the previous year). However, the effect of expense reductions narrowed the loss compared with the same quarter of the previous year.」
In the third quarter, selling, general and administrative expenses were reduced by 21.1% year on year, narrowing the quarterly operating, ordinary and net losses. - FY2019-Q2AdvancedAnnual report
「We will actively support distributors in generating actual sales, while reducing expenses and working to improve earnings in order to build a profit structure capable of withstanding temporary declines in net sales caused by distributors’ inventory adjustments.」
Measures to improve performance were specified, including support for distributors’ actual sales, a profit structure resilient to inventory adjustments and expense reductions. Operating cash flow amounted to ¥487.641 million for the six months ended the second quarter, while earnings remained in the red. - FY2019-Q1AdvancedAnnual report
「In terms of earnings, the company thoroughly managed budget-to-actual variances based on its expense policy. As a result, selling, general and administrative expenses were kept within budget and below the level in the same quarter of the previous year, narrowing the losses from operating activities, ordinary activities and net income for the quarter.」
Against the policy of improving earnings in the following fiscal year, the company reported first-quarter progress in managing selling, general and administrative expenses within budget and narrowing year-on-year operating, ordinary and net losses. No operating cash flow figure was provided for the quarter. - FY2018First statedAnnual report
「For fiscal 2018, we will work to achieve the disclosed figures and improve operating cash flow so as not to repeat the same mistakes.」
The company explicitly stated its policy of improving earnings and operating cash flow in the following fiscal year. Related indicators were an inventory turnover period of 13.4 months, an equity ratio of 23.2% and an ordinary income margin on net sales of 2.5%; it also stated its policy of restoring the KPIs to their previous levels.