Maximizing Enterprise Value Through Debt and Capital Optimization
First written in FY2017. 11 of 31 entries say "Advanced", first in FY2018. Latest entry: 2026-10-30.
Lixil moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2017: 3 of 18 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2026AdvancedAnnual report
「Net interest-bearing debt at the end of the current consolidated fiscal year decreased by ¥2.7 billion from the end of the previous consolidated fiscal year to ¥531.6 billion.」
Net interest-bearing debt decreased from ¥534.3 billion to ¥531.6 billion, and the net interest-bearing debt-to-EBITDA ratio also improved from 4.7 times to 4.4 times. The ratio of equity attributable to owners of the parent was 35.3%, exceeding the medium-term target of 35% or more. - FY2026-H1AdvancedAnnual report
「In addition, equity was ¥639.394 billion, and the ratio of equity attributable to owners of the parent was 34.1%, up 0.4 percentage points from the end of the previous consolidated fiscal year.」
The ratio of equity attributable to owners of the parent rose 0.4 percentage points from the end of the previous fiscal year to 34.1%. - FY2025AdvancedAnnual report
「Net interest-bearing debt at the end of the current consolidated fiscal year decreased by ¥18.4 billion from the end of the previous consolidated fiscal year to ¥534.3 billion.」
Net interest-bearing debt decreased by ¥18.4 billion due to improvements in operating cash flow and other factors, and the net interest-bearing debt-to-EBITDA ratio also improved from 5.3 times to 4.7 times. Meanwhile, a gap remains from the medium-term target of 3.5 times or less. - FY2025-H1Decline in the Ratio of Equity Attributable to Owners of the ParentAnnual report
「In addition, equity was ¥613.636 billion, and the ratio of equity attributable to owners of the parent was 33.7%, down 0.4 percentage points from the end of the previous consolidated fiscal year.」
The ratio of equity attributable to owners of the parent fell 0.4 percentage points from the end of the previous fiscal year to 33.7%. - FY2024WorsenedAnnual report
「Net interest-bearing debt at the end of the current consolidated fiscal year increased by ¥41 billion from the end of the previous consolidated fiscal year to ¥552.7 billion.」
Net interest-bearing debt increased by ¥41 billion to ¥552.7 billion, and the net interest-bearing debt-to-EBITDA ratio rose to 5.3 times, widening the gap from the medium-term target of 3.5 times or less. Meanwhile, the ratio of equity attributable to owners of the parent improved slightly to 34.1%. - FY2024-Q3Flat equity ratio, increase in interest-bearing debtAnnual report
「In addition, equity was ¥638.695 billion, and the ratio of equity attributable to owners of the parent was 33.7%, unchanged from the end of the previous consolidated fiscal year.」
The ratio of equity attributable to owners of the parent remained at 33.7%, unchanged from the end of the previous fiscal year, while the carrying amount of bonds and borrowings increased from ¥554.506 billion at the end of the previous fiscal year to ¥638.819 billion. - FY2024-Q2Improvement in equity ratio, increase in interest-bearing debtAnnual report
「In addition, equity was ¥659.101 billion, and the ratio of equity attributable to owners of the parent was 34.3%, up 0.6 percentage points from the end of the previous consolidated fiscal year.」
The ratio of equity attributable to owners of the parent improved by 0.6 percentage points from the end of the previous consolidated fiscal year to 34.3%. Meanwhile, the carrying amount of bonds and borrowings increased from ¥554.506 billion at the end of the previous fiscal year to ¥637.906 billion. - FY2024-Q1Slight improvement in equity ratio, increase in interest-bearing debtAnnual report
「In addition, equity was ¥649.907 billion, and the ratio of equity attributable to owners of the parent was 33.8%, up 0.1 percentage points from the end of the previous consolidated fiscal year.」
The ratio of equity attributable to owners of the parent edged up from 33.7% to 33.8%, while the carrying amount of bonds and borrowings increased from ¥554.506 billion to ¥620.123 billion. - FY2023WorsenedAnnual report
「Using a net interest-bearing debt-to-EBITDA ratio of 3.5 times or less and a ratio of equity attributable to owners of the parent of 35% or more as the indicators for our medium-term targets, we will work to improve capital efficiency and reduce interest-bearing debt based on the promotion of an asset-light business model.」
The net interest-bearing debt-to-EBITDA ratio worsened from 2.9 times to 4.8 times, while the ratio of equity attributable to owners of the parent declined from 34.3% to 33.7%, widening the gap from the medium-term targets. - FY2023-Q3Decline in the Ratio of Equity Attributable to Owners of the ParentAnnual report
「In addition, equity was ¥613.643 billion, and the ratio of equity attributable to owners of the parent was 32.1%, down 2.2 percentage points from the end of the previous consolidated fiscal year.」
The ratio of equity attributable to owners of the parent fell 2.2 percentage points from 34.3% at the end of the previous consolidated fiscal year to 32.1%. - FY2023-Q2Decline in the Ratio of Equity Attributable to Owners of the ParentAnnual report
「In addition, equity was ¥639.167 billion, and the ratio of equity attributable to owners of the parent was 33.7%, down 0.6 percentage points from the end of the previous consolidated fiscal year.」
The ratio of equity attributable to owners of the parent fell from 34.3% at the end of the previous consolidated fiscal year to 33.7%. - FY2023-Q1Slight decline in the ratio of equity attributable to owners of the parentAnnual report
「In addition, equity was ¥636 billion, and the ratio of equity attributable to owners of the parent was 34.1%, down 0.2 percentage points from the end of the previous consolidated fiscal year.」
The ratio of equity attributable to owners of the parent edged down from 34.3% at the end of the previous consolidated fiscal year to 34.1%. - FY2022AdvancedAnnual report
「In the fiscal year, the net interest-bearing debt-to-EBITDA ratio improved further from the previous fiscal year to 2.9x, while the equity attributable to owners of the parent ratio also reached 34.3%, approaching the medium-term target, enabling the company to establish a clear path toward strengthening its financial position.」
The net interest-bearing debt-to-EBITDA ratio improved from 3.5x to 2.9x, while the equity attributable to owners of the parent ratio improved from 31.7% to 34.3%, bringing the company closer to achieving its financial targets. - FY2022-Q3Improved from the fiscal year-end, down from the previous quarterAnnual report
「Capital totaled ¥577.655 billion, and the equity attributable to owners of the parent ratio was 32.6%, an improvement of 0.9 percentage points from the end of the previous fiscal year.」
The equity attributable to owners of the parent ratio improved by 0.9 percentage points from the end of the previous fiscal year, but declined from 33.1% at the previous quarterly reporting date. - FY2022-Q2AdvancedAnnual report
「Capital totaled ¥568.929 billion, and the equity attributable to owners of the parent ratio was 33.1%, an improvement of 1.4 percentage points from the end of the previous fiscal year.」
The equity attributable to owners of the parent ratio improved by 1.4 percentage points from the end of the previous fiscal year to 33.1%. - FY2022-Q1AdvancedAnnual report
「Capital totaled ¥561.377 billion, and the equity attributable to owners of the parent ratio was 32.1%, an improvement of 0.4 percentage points from the end of the previous fiscal year.」
The equity attributable to owners of the parent ratio improved by 0.4 percentage points from the end of the previous fiscal year to 32.1%. - FY2021AchievedAnnual report
「During the fiscal year, net interest-bearing debt decreased by ¥252.2 billion year on year as a result of measures including the sale of multiple subsidiaries following a review of the business portfolio, improvements in business profitability and the prioritization of investments focused on ROIC. The net interest-bearing debt-to-EBITDA ratio improved to the target of 3.5x, while the equity attributable to owners of the parent ratio improved 7.7 percentage points year on year to 31.7%, representing significant progress in strengthening the financial base.」
The company reached its medium-term target of a net interest-bearing debt-to-EBITDA ratio of 3.5x or less, while net interest-bearing debt also decreased by ¥252.2 billion. - FY2020WorsenedAnnual report
「As a result, net interest-bearing debt at the end of the fiscal year was ¥736.7 billion, an increase of ¥152.2 billion from the end of the previous fiscal year. However, excluding the increase associated with the application of IFRS 16, it was ¥570.3 billion, representing an effective decrease of ¥14.2 billion from the end of the previous fiscal year.」
Net interest-bearing debt including the impact of IFRS 16 increased, and the net debt-to-equity ratio also rose to 1.5x, while the underlying balance excluding that impact decreased by ¥14.2 billion. - FY2019WorsenedAnnual report
「As a result, net interest-bearing debt at the end of the fiscal year was ¥584.5 billion, an increase of ¥85.4 billion from the end of the previous fiscal year.」
Net interest-bearing debt increased by ¥85.4 billion to ¥584.5 billion, and the net debt-to-equity ratio rose from 0.9x to 1.1x. - FY2018AdvancedAnnual report
「As a result, net interest-bearing debt at the end of the fiscal year was ¥549.2 billion, a decrease of ¥89.2 billion from the end of the previous fiscal year. Cash and cash equivalents at the end of the fiscal year totaled ¥138.8 billion.」
Net interest-bearing debt decreased by ¥89.2 billion, and the net debt-to-equity ratio also improved to 0.9x, demonstrating measurable improvement in capital management. - FY2018-Q3RestatedAnnual report
「• Business profit margin: 7.5% • Return on equity attributable to owners of the parent (ROE): 10% or more • Net debt-to-EBITDA ratio: 2.5x or less • Equity attributable to owners of the parent ratio: 35%」
The numerical targets for profitability, ROE, debt levels and the equity ratio under the new medium-term management plan have been reiterated. - FY2018-Q2ReframedAnnual report
「Business profit margin: 7.5%; return on equity attributable to owners of the parent (ROE): 10% or more; net debt-to-EBITDA ratio: 2.5x or less; equity attributable to owners of the parent ratio: 35%」
The policy of optimizing the debt and equity structure has been translated into numerical targets in the new medium-term management plan for the net debt-to-EBITDA ratio and the equity attributable to owners of the parent ratio. - FY2017First statedAnnual report
「The Group's basic capital management policy is to optimize the debt and equity structure and maximize corporate value.」
Separately from its dividend policy, the company has explicitly identified optimizing the debt-to-equity structure and monitoring the ratio of equity attributable to owners of the parent as its capital management policy.