High Proportion of Goodwill and Intangible Assets and Impairment Risk
First written in FY2024. 2 of 3 entries say "Worsened", first in FY2025. Latest entry: FY2026.
PHC Holdings moved to the "Worse" side of this theme in 2025, 1 year after the typical company in this theme (2024).
The whole theme swung hardest in 2023: 35 of 98 companies on the "Worse" side.
25 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The main factors were a ¥15,023 million increase in goodwill due to foreign exchange effects and a ¥6,277 million decrease in intangible assets as amortisation progressed on intangible assets arising from past acquisitions, among other factors.」
The goodwill balance increased to ¥221,524 million due to foreign exchange effects, while intangible assets stood at ¥74,371 million. The financial structure remains heavily weighted toward acquisition-related goodwill and intangible assets, with impairment risk continuing. - FY2025WorsenedAnnual report
「As a result of the historical carve-out from Panasonic and subsequent M&A, intangible assets and goodwill recorded in the company's consolidated financial statements accounted for 53.9% of total assets as of the end of the fiscal year ended March 2025.」
The ratio of intangible assets and goodwill to total assets rose from 53.2% in the previous fiscal year to 53.9%, continuing to highlight the risk of impairment from deteriorating profitability and lower future cash flows. - FY2024First statedAnnual report
「Intangible assets and goodwill accounted for 53.2% of total assets as of the end of the fiscal year ended March 2024.」
The company discloses that goodwill and intangible assets account for 53.2% of total assets and that significant impairment could arise from deterioration in business profitability or a decline in future cash flows. During the fiscal year, impairment losses were recognized in pathology, clinical testing and LSIM diagnostics.