Improving Operating Margin, ROE, and Free Cash Flow
First written in FY2017. 4 of 17 entries say "Advanced", first in FY2018-Q2. Latest entry: FY2027-H1.
The whole theme swung hardest in 2020: 16 of 74 companies on the "Worse" side.
40 other companies' latest entry also says "Advanced".
- FY2027-H1AdvancedAnnual report
「Net cash provided by operating activities was ¥1,327 million (¥241 million in the same period of the previous year). Net cash used in investing activities was ¥536 million (¥502 million in the same period of the previous year).」
Cash provided by operating activities increased from ¥241 million in the same period of the previous year to ¥1,327 million. Although investing outlays increased slightly, funds generated after subtracting investing cash flow from operating cash flow improved. - FY2026RaisedAnnual report
「For the fiscal year ending March 2029, the final year of VC28, the company targets ROE of 8.0% or higher and ROIC of 10.0% or higher, with the aim of raising ROE and ROIC above the cost of shareholders' equity and WACC.」
In addition to ROIC of 10% or more, the company explicitly set a target of ROE of 8% or more in the final year of VC28, aiming for capital efficiency exceeding the cost of capital and WACC. - FY2026-H1Lower operating cash flow, higher investing outflowsAnnual report
「Net cash provided by operating activities was ¥241 million (¥632 million in the same period of the previous year). Net cash used in investing activities was ¥502 million (¥466 million in the same period of the previous year).」
Cash provided by operating activities decreased from the same period of the previous year, while cash used in investing activities increased, resulting in weaker figures for the current interim period in relation to free cash flow. - FY2025-H1Decrease in operating cash flow and decrease in investing outlaysAnnual report
「Net cash provided by operating activities was ¥632 million (¥648 million in the same period of the previous year). Net cash used in investing activities was ¥466 million (¥508 million in the same period of the previous year).」
While cash provided by operating activities decreased year on year, cash used in investing activities also decreased. - FY2024ROIC decline and failure to meet targetAnnual report
「Regarding capital efficiency, return on invested capital (ROIC) was 3.9% (8.1% in the previous fiscal year), below the target of 10% or more.」
ROIC decreased from 8.1% in the previous fiscal year to 3.9%, below the target of 10% or more set under VC2024. - FY2024-Q2Lower Operating Cash FlowAnnual report
「Net cash provided by operating activities was ¥648 million (¥825 million in the same period of the previous year). Net cash used in investing activities was ¥508 million (¥588 million in the same period of the previous year).」
Cash provided by operating activities related to free cash flow decreased from ¥825 million in the same period of the previous year to ¥648 million. Cash used in investing activities was ¥508 million. - FY2023ROIC target not achievedAnnual report
「The return on equity (ROE) was 7.9% (14.2% in the previous fiscal year), while the return on invested capital (ROIC) was 8.1% (11.4% in the previous fiscal year), both below the target of 10% or higher.」
Against the VC2024 target of ROIC of 10% or more, ROIC was 8.1% for the current fiscal year, below target. ROE also declined from 14.2% to 7.9%. - FY2023-Q3RestatedAnnual report
「Under the “Financial Strategy,” we aim to consistently maintain ROIC of 10% or more by strengthening our earnings capacity, improve ROE and strengthen shareholders’ equity, enhance management efficiency, and achieve sustainable growth and a medium- to long-term increase in corporate value by appropriately allocating funds generated from operating activities to growth strategy investments and stable dividends while maintaining a sound financial base.」
As part of the financial strategy under VC2024, the company reconfirms its commitment to consistently maintaining ROIC of 10% or more, improving ROE, strengthening shareholders’ equity, and allocating funds to growth investments and stable dividends. - FY2023-Q2Lower Operating Cash FlowAnnual report
「Net cash provided by operating activities was ¥825 million (¥1,392 million in the same period of the previous year). This was attributable to profit before income taxes of ¥1,417 million, non-cash profit and loss items including depreciation of ¥554 million, an increase in inventories of ¥142 million, an increase in trade receivables of ¥148 million, a decrease in accounts payable and accrued expenses of ¥888 million, and other factors.」
In relation to free cash flow, which the company identifies as an important indicator, cash provided by operating activities decreased from ¥1,392 million in the same period of the previous year to ¥825 million. Cash used in investing activities was ¥588 million. - FY2022RaisedAnnual report
「With the launch of the medium-term management plan “VC2024” in April 2022, the company will newly designate return on invested capital (ROIC) as one of its important management indicators. The Group’s ROIC is already above its weighted average cost of capital (WACC), and it aims to further widen this spread by strengthening its earnings capacity and consistently maintain ROIC of 10% or more going forward.」
In addition to operating profit margin on sales, ROE and free cash flow, the company has added ROIC as a new important indicator and introduced a numerical target of consistently maintaining it at 10% or more. - FY2022-Q2Higher operating cash flow, higher investing outflowsAnnual report
「Net cash provided by operating activities was ¥1,392 million (¥1,215 million in the same period of the previous year). Net cash used in investing activities was ¥638 million (¥437 million in the same period of the previous year). This was mainly due to ¥568 million in cash used to acquire property, plant and equipment, among other factors.」
While cash provided by operating activities increased, cash used in investing activities, including acquisitions of property, plant and equipment, also increased. The disclosure does not indicate a one-way improvement in free cash flow. - FY2021-Q2AdvancedAnnual report
「Net cash provided by operating activities was ¥1,215 million (¥1,009 million in the same period of the previous year). Net cash used in investing activities was ¥437 million (¥730 million in the same period of the previous year).」
As cash provided by operating activities increased and cash used in investing activities decreased, the company reports a measurable change toward an improvement in free cash flow. - FY2020-Q2AdvancedAnnual report
「Net cash provided by operating activities was ¥1,009 million (¥949 million in the same period of the previous year). Net cash used in investing activities was ¥730 million (¥1,373 million in the same period of the previous year).」
In relation to free cash flow, which the company identifies as an important indicator, cash provided by operating activities increased and cash used in investing activities decreased. - FY2019RaisedAnnual report
「Through these measures, we aim to achieve a high return on equity (ROE) and return on assets (ROA) exceeding the cost of capital, enhance stable and sustainable shareholder returns, and improve them further.」
In addition to the previous targets of improving operating profit margin on sales, ROE and free cash flow, the company explicitly states its aim of achieving ROE and ROA exceeding the cost of capital, broadening the scope of its targets. - FY2019-Q2Lower Operating Cash FlowAnnual report
「Net cash provided by operating activities was ¥949 million (¥1,882 million in the same period of the previous year). Net cash used in investing activities was ¥1,373 million (¥1,043 million in the same period of the previous year).」
In relation to free cash flow, which the company identifies as an important indicator, cash provided by operating activities decreased year on year, while cash used in investing activities increased. No figure for free cash flow itself is disclosed. - FY2018-Q2AdvancedAnnual report
「Net cash provided by operating activities was ¥1,882 million (¥858 million in the same period of the previous year).」
In line with the policy of improving free cash flow as an important management indicator, the company reports that cash provided by operating activities increased from the same period of the previous year. - FY2017First statedAnnual report
「The Group has designated operating margin as a business evaluation metric, return on equity (ROE) as a management evaluation metric, and free cash flow from a cash-flow management perspective as important management indicators, and aims to improve each of them.」
The company newly states that it considers operating profit margin on sales, ROE and free cash flow to be important management indicators and aims to improve them, but provides no specific numerical targets or deadlines.