Constraints on continuing unprofitable businesses due to financial strength
First written in FY2021-Q2. 2 of 3 entries say "Worsened", first in FY2021-Q3. Latest entry: FY2021.
No other company in this theme has enough history to compare yet.
- FY2021WorsenedAnnual report
「After carefully considering the business environment described above and the scale and financial strength required for サノヤス造船㈱, which operates the shipbuilding business, to remain independent as a shipyard, the Company decided to transfer the business as of 28 February 2021 and pursue business continuity by placing it under the group's umbrella.」
The shipbuilding business transitioned to continuity through a business transfer, given the constraints on the scale and financial strength required to remain independent. - FY2021-Q3WorsenedAnnual report
「In light of the recent business environment and the scale and financial strength required to remain independent, the Company decided to place the business under ㈱新来島どっく and pursue business continuity.」
The scale and financial strength required for the shipbuilding business to remain independent were explicitly cited as reasons for the transfer, while net assets were ¥4,301 million and the equity ratio was 6.6% at the end of the third quarter. - FY2021-Q2First statedAnnual report
「At this point, continuing the business, for which there was still no sign of recovery, any longer was difficult in light of the Company's financial strength,」
The Company explicitly cited its recognition that continuing a business with no sign of recovery was difficult in light of its financial strength as a reason for deciding to transfer the shipbuilding business.