Improving Core Business Profitability with Operating Margin as the Primary Indicator
First written in FY2018. 17 of 32 entries say "Advanced", first in FY2019-Q2. Latest entry: 2026-07-29.
Fdk moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
The whole theme swung hardest in 2019: 14 of 100 companies on the "Worse" side.
30 other companies' latest entry also says "Advanced".
- 2026-07-29AdvancedEarnings presentation
「(Operating margin) (1.5%) (1.7%) (+0.2pt)」
The operating margin rose from 1.5% in the same period of the previous year to 1.7%, an increase of 0.2 percentage points. - FY2026Improvement alongside failure to meet the R2 planAnnual report
「Management indicators under the R2 Medium-Term Business Plan: fiscal year ended March 2024, actual: revenue ¥62.6 billion, operating margin 0.9%; fiscal year ended March 2025, actual: revenue ¥63.1 billion, operating margin 2.2%; fiscal year ended March 2026, actual: revenue ¥59.5 billion, operating margin 2.8%; fiscal year ending March 2026, target: revenue ¥68.0 billion, operating margin 4.1%; variance from target: revenue △¥8.5 billion, operating margin △1.3 percentage points.」
Operating margin improved from 0.9% to 2.2% and then to 2.8%, but revenue and operating margin were below the final-year R2 targets. Over the R2 period as a whole, operating margin was 2.0% and ROIC was 2.6%, both below the cumulative targets. - FY2026-H1WorsenedAnnual report
「As a result, operating profit was ¥553 million, down ¥232 million from the previous interim consolidated accounting period, despite a reduction in selling, general and administrative expenses due to lower enterprise-wide local tax resulting from changes in stated capital and other items.」
With operating profit as the primary measure of core profitability, operating profit declined from ¥785 million in the same period of the previous year to ¥553 million. - FY2025AdvancedAnnual report
「Management indicators under the R2 Medium-Term Business Plan: fiscal year ended March 2024, actual: revenue ¥62.6 billion, operating margin 0.9%; fiscal year ended March 2025, actual: revenue ¥63.1 billion, operating margin 2.2%; fiscal year ending March 2026, forecast: revenue ¥60.0 billion, operating margin 2.3%; fiscal year ending March 2026, target: revenue ¥68.0 billion, operating margin 4.1%.」
Operating margin improved from 0.9% in the previous fiscal year to 2.2%. However, the forecast for the final year of R2 is 2.3%, below the 4.1% target. - FY2025-H1AdvancedAnnual report
「As a result, operating profit was ¥785 million, compared with an operating loss of ¥76 million in the previous interim consolidated accounting period.」
With operating margin as the primary indicator, operating results shifted from an operating loss of ¥76 million in the same period of the previous year to operating profit of ¥785 million, and core profitability improved. - FY2024WorsenedAnnual report
「Management indicators under the R2 Medium-Term Business Plan: fiscal year ended March 2024, actual: revenue ¥62.6 billion, operating margin 0.9%; fiscal year ending March 2025, forecast: revenue ¥63.0 billion, operating margin 1.6%; fiscal year ending March 2026, target: revenue ¥68.0 billion, operating margin 4.1%.」
The operating margin in the first year of R2 was 0.9%, leaving a substantial gap from the final-year target of 4.1%. The operating margin in the first year of R2 declined from 1.3% in the previous fiscal year. - FY2024-Q3WorsenedAnnual report
「As a result, operating profit decreased by ¥714 million from the previous third-quarter cumulative consolidated period to ¥105 million.」
With operating profit as the primary indicator, operating profit declined from ¥820 million in the same period of the previous year to ¥105 million, and core profitability deteriorated. - FY2024-Q2WorsenedAnnual report
「As a result, the Company recorded an operating loss of ¥76 million, compared with operating profit of ¥670 million in the previous second-quarter cumulative consolidated period.」
With operating margin as the primary indicator, operating results shifted from operating profit of ¥670 million in the same period of the previous year to an operating loss of ¥76 million, and core profitability deteriorated. - FY2024-Q1WorsenedAnnual report
「As a result, the Company recorded an operating loss of ¥135 million, compared with operating profit of ¥322 million in the previous first-quarter cumulative consolidated period.」
With operating margin as the primary indicator, operating results shifted from operating profit of ¥322 million in the same period of the previous year to an operating loss of ¥135 million, and core profitability deteriorated. - FY2023WorsenedAnnual report
「Operating margin: actual for the fiscal year ended March 2021: 2.8%; actual for the fiscal year ended March 2022: 3.4%; actual for the fiscal year ended March 2023: 1.3%; target for the fiscal year ending March 2023: 5.1%.」
Operating margin in the final year of R1 was 1.3%, 3.8 percentage points below the 5.1% target. ROIC was also 0.8%, below the 9.9% target, quantifying the shortfall against the core profitability targets. - FY2023-Q3WorsenedAnnual report
「As a result, operating profit decreased by ¥1,146 million from the previous third-quarter cumulative consolidated period to ¥820 million.」
With operating margin as the primary indicator, operating profit declined from ¥1,966 million in the same period of the previous year to ¥820 million, and core profitability deteriorated. - FY2023-Q2WorsenedAnnual report
「As a result, operating profit decreased by ¥722 million from the previous second-quarter cumulative consolidated period to ¥670 million.」
With operating margin as the primary indicator, operating profit declined from ¥1,392 million in the same period of the previous year to ¥670 million, and core profitability deteriorated. - FY2023-Q1WorsenedAnnual report
「As a result, operating profit decreased by ¥406 million from the previous first-quarter cumulative consolidated period to ¥322 million, broadly in line with the initial forecast.」
With operating profit as the primary indicator, operating profit declined from ¥729 million in the same period of the previous year to ¥322 million, and core profitability deteriorated. - FY2022AdvancedAnnual report
「Under the R1 Medium-Term Business Plan, the Group uses operating margin and ROIC (return on invested capital) as management indicators, with operating margin as the primary indicator. Operating margin: actual for the fiscal year ended March 2021: 2.8%; actual for the fiscal year ended March 2022: 3.4%; forecast for the fiscal year ending March 2023: 1.9%; target for the fiscal year ending March 2023: 5.1%.」
Operating margin improved from 2.8% to 3.4%, while ROIC improved from 5.9% to 6.4%. However, the forecast operating margin for the fiscal year ending March 2023 is 1.9%, below the R1 target of 5.1%. - FY2022-Q3AdvancedAnnual report
「As a result, operating profit increased by ¥593 million from the previous third-quarter cumulative consolidated period to ¥1,966 million, while ordinary profit increased by ¥937 million to ¥1,832 million.」
Operating profit, the primary measure of core profitability, increased from ¥1,373 million in the same period of the previous year to ¥1,966 million, indicating continued improvement. - FY2022-Q2AdvancedAnnual report
「Operating profit increased by ¥428 million from the previous second-quarter cumulative consolidated period to ¥1,392 million, while ordinary profit increased by ¥592 million from the previous second-quarter cumulative consolidated period to ¥1,302 million.」
Operating profit, the primary measure of core profitability, increased from ¥963 million in the same period of the previous year to ¥1,392 million. Profit increased in both the Electronics and Battery businesses. - FY2022-Q1AdvancedAnnual report
「Operating profit increased by ¥284 million from the first quarter of the previous consolidated fiscal year to ¥729 million, while ordinary profit increased by ¥335 million from the first quarter of the previous consolidated fiscal year to ¥691 million.」
Operating profit, the key measure of core profitability, increased from ¥444 million in the same period of the previous year to ¥729 million, and ordinary profit also increased. - FY2021AdvancedAnnual report
「Our group uses operating profit margin as its primary management metric. Although operating profit margin for the consolidated fiscal year increased by 1.4 percentage points from the previous consolidated fiscal year, it remained at a low level of 2.8%, and we recognize that effective measures are needed to improve it further.」
Operating profit margin improved by 1.4 percentage points from 1.4% in the previous year to 2.8%, but the company stated that it remained at a low level and that further improvement was necessary. - FY2021-Q3AdvancedAnnual report
「Operating profit increased by ¥562 million from the first nine months of the previous consolidated fiscal year to ¥1,373 million.」
Operating profit, a measure of core operating profitability, increased by ¥562 million year on year to ¥1,373 million. - FY2021-Q2AdvancedAnnual report
「Operating profit increased by ¥927 million to ¥963 million. Although ordinary profit included a ¥63 million gain on the sale of fixed assets, it was ¥709 million due to the recognition of a ¥284 million foreign exchange loss and other items, compared with an ordinary loss of ¥37 million in the first six months of the previous consolidated fiscal year. Profit attributable to owners of the parent for the quarter was ¥502 million, compared with a loss attributable to owners of the parent of ¥685 million in the first six months of the previous consolidated fiscal year.」
Regarding core operating profitability, measured by operating profit margin as the primary metric, operating profit improved from ¥36 million in the same period of the previous year to ¥963 million, while ordinary profit and profit attributable to owners of the parent for the quarter also shifted from losses to profits. - FY2021-Q1AdvancedAnnual report
「Operating profit was ¥444 million, compared with an operating loss of ¥209 million in the first quarter of the previous fiscal year; ordinary profit was ¥355 million, compared with an ordinary loss of ¥298 million; and quarterly net income attributable to owners of the parent was ¥296 million, compared with a quarterly net loss attributable to owners of the parent of ¥1,194 million. All three measures represented the first profitable first-quarter results in 5 years.」
With operating profit as the primary metric, operating results shifted from a loss of ¥209 million in the same period of the previous year to a profit of ¥444 million, marking the first profitable first quarter in 5 years. - FY2020AdvancedAnnual report
「Although operating profit margin for the consolidated fiscal year increased by 0.3 percentage points from the previous consolidated fiscal year, it remained at a low level of 1.4%, and we recognize that effective measures are needed to improve it.」
Operating profit margin improved by 0.3 percentage points from 1.1% to 1.4%, but the company stated that it remained at a low level and that additional measures were needed. - FY2020-Q3WorsenedAnnual report
「As a result, operating profit decreased by ¥226 million from the first nine months of the previous consolidated fiscal year to ¥811 million, while ordinary profit decreased by ¥615 million from the first nine months of the previous consolidated fiscal year to ¥684 million.」
Operating profit decreased by ¥226 million year on year, indicating that core operating profitability, measured by operating profit margin as the primary metric, deteriorated from the same period of the previous year. - FY2020-Q2WorsenedAnnual report
「As a result, operating profit decreased by ¥183 million from the first six months of the previous consolidated fiscal year to ¥36 million, while ordinary loss was ¥37 million, compared with ordinary profit of ¥631 million in the first six months of the previous consolidated fiscal year.」
Operating profit decreased by ¥183 million year on year to ¥36 million, and ordinary results shifted from a profit of ¥631 million to a loss of ¥37 million. Core operating profitability deteriorated. - FY2020-Q1WorsenedAnnual report
「As a result, operating loss was ¥209 million, compared with an operating loss of ¥123 million in the first quarter of the previous consolidated fiscal year, while ordinary loss was ¥298 million, compared with ordinary profit of ¥193 million in the first quarter of the previous consolidated fiscal year.」
With operating profit margin as the primary metric, operating loss widened from ¥123 million in the same period of the previous year to ¥209 million, indicating a deterioration in core operating profitability. - FY2019AdvancedAnnual report
「Our group uses operating profit margin as its primary management metric. Although operating profit margin for the consolidated fiscal year increased by 0.2 percentage points from the previous consolidated fiscal year, it remained at a very low level of 1.1%, and we recognize that effective measures are needed to improve it.」
Operating profit margin improved by 0.2 percentage points from 0.9% to 1.1%, but the company stated that it remained at a very low level and that additional measures were needed. - FY2019-Q3AdvancedAnnual report
「In terms of earnings, despite the impact of soaring raw material prices, operating profit increased by ¥399 million from the first three quarters of the previous consolidated fiscal year to ¥1,037 million, due to higher sales, cost reductions, and foreign-exchange effects.」
Operating profit, which indicates core operating profitability, increased from ¥638 million in the same period of the previous year to ¥1,037 million due to factors including cost reductions. - FY2019-Q2AdvancedAnnual report
「In terms of earnings, despite the impact of soaring raw material prices, operating profit increased by ¥85 million from the first two quarters of the previous consolidated fiscal year to ¥220 million, due to higher sales, cost reductions, and foreign-exchange effects.」
With operating profit margin as the primary metric, operating income for the first six months improved from ¥134 million in the same period of the previous year to ¥220 million, resulting in an operating profit. - FY2019-Q1WorsenedAnnual report
「As a result, operating loss was ¥123 million, compared with an operating loss of ¥157 million in the first quarter of the previous consolidated fiscal year.」
With operating profit margin as the primary metric, the company continued to report an operating loss of ¥123 million in the first quarter, and improvement in core operating profitability remains a work in progress. - FY2018First statedAnnual report
「Our group uses operating profit margin as its primary management metric. This is because we recognize that improving profitability in our core business is our most important challenge. Operating profit margin for the consolidated fiscal year was 0.9%, which we recognize as an extremely low level, and effective measures are needed to improve it.」
The company positions operating profit margin as its primary management metric and explicitly identifies improving core operating profitability as an important challenge. Operating profit margin for the period was reported at 0.9%.