Improving Operating Profit Margin, ROE and ROA
First written in FY2017. 1 of 7 entries say "Restated". Latest entry: FY2026.
Nkk Switches moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2019: 8 of 43 companies on the "Worse" side.
4 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「To achieve management that takes the cost of capital and share price into account, the Group has established ROIC and ROE as management indicators in addition to the current operating margin, and will work to further enhance corporate value.」
The Company has shifted from the previous focus on improving the operating margin, ROE and ROA to management indicators that include ROIC instead of ROA and reflect awareness of the cost of capital. - FY2022AdvancedAnnual report
「The Group positioned the fiscal year ending March 2022 as a year for “laying the foundation for realizing the new Group Vision.” It initially set targets of net sales of ¥6,900 million and operating income of ¥100 million, but changed them to net sales of ¥8,400 million and operating income of ¥750 million amid a rapid recovery in demand and other factors. Despite the impact of difficulties procuring materials and higher raw material prices, initiatives to increase production capacity and other measures resulted in net sales of ¥8,938 million, or 106.4% of plan, and operating income of ¥800 million, or 106.7% of plan, for the current consolidated fiscal year.」
After changing the targets for the fiscal year ending March 2022 to net sales of ¥8.4 billion and operating income of ¥750 million, both net sales and operating income exceeded plan. - FY2021Updated final plan resultsAnnual report
「The Group launched its four-year medium-term management plan “Change100” in April 2017, with sales of ¥9.0 billion and an operating margin of 7.8% as its targets. However, in the current consolidated fiscal year, the final year of the plan, conditions remained difficult as economic activity was substantially restricted by the spread of COVID-19. Net sales were ¥6,830 million, or 75.9% of plan, and the operating margin was 0.2%.」
In the final year, results against the revised targets of sales of ¥9.0 billion and an operating margin of 7.8% were net sales of ¥6,830 million, or 75.9% of plan, and an operating margin of 0.2%. - FY2020Updated plan progressAnnual report
「The Group launched its four-year medium-term management plan “Change100” in April 2017. It partially revised the basic strategies from the current consolidated fiscal year, setting sales of ¥9.0 billion and an operating margin of 7.8% as its targets. In the third year, the current consolidated fiscal year, net sales were ¥7,266 million, or 80.7% of plan, and operating income was ¥85 million, or 12.2% of plan, leaving the operating margin significantly behind schedule.」
The revised targets of sales of ¥9.0 billion and an operating margin of 7.8% were maintained, but third-year results were 80.7% of the sales plan and 12.2% of the operating income plan, quantifying once again the delay in achieving the operating margin target. - FY2019SoftenedAnnual report
「The Company partially revised the basic strategies of its medium-term management plan “Change100” and is working as one to strengthen profitability, with a sales target of ¥9.0 billion and a target operating margin of 7.8%, while promoting the transition to a solutions business」
The numerical targets under Change100 were lowered from sales of ¥10.0 billion and an operating margin of 10% to sales of ¥9.0 billion and an operating margin of 7.8%, while the Company continues to strengthen profitability and transition to a solutions business. - FY2018RestatedAnnual report
「The Group considers both ROE, as an indicator from the perspective of prioritizing shareholder returns, and ROA, as an indicator of the efficiency and profitability of invested capital, to be important. However, from the perspective of pursuing profits in its core business, it will first raise its operating margin and strengthen business profitability, while working to improve ROE and ROA.」
The Company reiterates its policy of improving business profitability by using the operating margin as a leading indicator and improving ROE and ROA in the process. - FY2017First statedAnnual report
「The Group considers both ROE, as an indicator from the perspective of prioritizing shareholder returns, and ROA, as an indicator of the efficiency and profitability of invested capital, to be important. However, from the perspective of pursuing profits in its core business, it will first raise its operating margin and strengthen business profitability, while working to improve ROE and ROA.」
For the first time, the Company states the priority of its management indicators, using the operating margin as a leading indicator and seeking to improve ROE and ROA. No numerical targets or deadlines are provided.