Securing a 50% Equity Ratio and Maintaining Net Cash Equivalent to Two Months’ Sales
First written in FY2019-Q1. 10 of 21 entries say "Restated". Latest entry: FY2026.
Subaru moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2020: 3 of 27 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Meanwhile, in addition to the impact of additional US tariffs, ROE for the fiscal year ending March 2026 remained at 3.3% due to the recognition of environmental-regulation-related costs, including losses related to environmental-regulation credits, and BEV-related costs.」
ROE declined from 12.8% in the previous fiscal year to 3.3%, while WACC also rose to around the mid-7% range. The target of ROE of at least 10% toward 2030 remains unchanged. - FY2025Cost of capital rises, ROE declinesAnnual report
「As of the end of March 2025, the cost of capital (WACC, based on CAPM) had risen to around the mid-7% range in response to the upward trend in domestic interest rates, while capital profitability (ROE) remained at 12.8%, above the cost of capital.」
The equity ratio exceeded the 50% benchmark at 53.3%, and ROE remained at least 10%. However, WACC rose from the mid-6% range in the previous fiscal year to the mid-7% range, while ROE declined from 16.5% to 12.8%. - FY2025-H1RestatedAnnual report
「Equity attributable to owners of the parent ratio (%) 52.8」
At the end of the interim period, equity attributable to owners of the parent was 52.8% of total equity, remaining above the financial benchmark of maintaining an equity ratio of at least 50%. - FY2024AdvancedAnnual report
「The company's current cost of capital, or WACC, is in the mid-6% range based on CAPM. With a long-term target for 2030 in view, it will pursue ROE of at least 10%, together with industry-leading profitability.」
The company continued its policy of maintaining an equity ratio of at least 50% and net cash, while ROE came to 16.5%. It specified its capital policy of a WACC in the mid-6% range, ROE of at least 10% and approximately ¥1.5 trillion in electrification investments. - FY2024-Q3Equity attributable to owners of the parent ratio risesAnnual report
「Equity attributable to owners of the parent ratio (%) 52.9 54.5 53.3」
At the end of the third quarter, equity attributable to owners of the parent was 54.5% of total equity, exceeding the financial benchmark of maintaining an equity ratio of at least 50%. - FY2024-Q2AdvancedAnnual report
「To achieve this, we expect to invest approximately ¥1.5 trillion in electrification through around 2030, including battery procurement, production-plant equipment and BEV development, while maintaining financial soundness, defined as an equity ratio of at least 50%, and financial stability, supported by an appropriate net cash position.」
While reaffirming the existing financial policy of maintaining an equity ratio of at least 50% and net cash, the company added a capital allocation plan calling for approximately ¥1.5 trillion in electrification investments through around 2030. It stated that the target levels should be a WACC in the mid-6% range and ROE of at least 10%. - FY2024-Q1RestatedAnnual report
「Equity attributable to owners of the parent ratio (%) 52.8 53.7 53.3」
At the end of the first quarter, equity attributable to owners of the parent was 53.7% of total equity, remaining above the 50% equity-ratio benchmark. - FY2023AchievedAnnual report
「Specifically, we will maintain an equity ratio of 50% and work to ensure strong financial soundness, while targeting an industry-leading operating margin (8%) and ROE of at least 10%.」
The equity ratio exceeded the 50% benchmark at 53.3%, while ROE reached 10.0%, attaining the target level of at least 10%. - FY2023-Q3RestatedAnnual report
「Equity attributable to owners of the parent ratio (%) 54.1 52.9 53.4」
At the end of the third quarter, equity attributable to owners of the parent was 52.9% of total equity, remaining above the financial benchmark of a 50% equity ratio. - FY2023-Q2RestatedAnnual report
「Equity attributable to owners of the parent ratio (%) 54.7 52.4 53.4」
At the end of the second quarter, equity attributable to owners of the parent was 52.4% of total equity, remaining above the 50% equity-ratio benchmark. - FY2022ROE remained below targetAnnual report
「Specifically, we will maintain an equity ratio of 50% and work to ensure strong financial soundness, while targeting an industry-leading operating margin (8%) and ROE of at least 10%.」
The equity ratio exceeded the 50% benchmark at 53.4%, while ROE remained at 3.8%, below the target of at least 10%. - FY2022-Q2RestatedAnnual report
「Equity attributable to owners of the parent ratio (%) 51.8 54.7 52.1」
The ratio of equity attributable to owners of the parent at the end of the second quarter was 54.7%, above the previous financial threshold of maintaining an equity ratio of 50%. - FY2021SoftenedAnnual report
「We will maintain an industry-leading operating margin of 8%, net cash equivalent to two months of sales and an equity ratio of 50%, and aim for ROE of 10% or higher.」
While maintaining an equity ratio of 50% and net cash equivalent to two months of sales, revised the ROE target from the previous wording of maintaining 10% as a firm floor and aiming for 15% or higher to a target of 10% or higher. - FY2021-Q1RestatedAnnual report
「Equity attributable to owners of the parent ratio (%) 53.0 51.7 52.0」
The ratio of equity attributable to owners of the parent at the end of the first quarter was 51.7%, remaining above the financial threshold of a minimum equity ratio of 50%. - FY2020ROE below targetAnnual report
「Specifically, we set a minimum equity ratio of 50%, seek to maintain net cash equivalent to two months of revenue, and aim for ROE of 15% or higher while maintaining 10% as a firm floor.」
Continued the policy of a minimum equity ratio of 50% and net cash equivalent to two months of sales, explicitly stating 10% as the firm floor for ROE and a target of 15% or higher. The ratio of profit attributable to owners of the parent to equity was 9.0% for the fiscal year ending March 2020. - FY2020-Q3RestatedAnnual report
「Equity attributable to owners of the parent ratio (%) 53.9 53.1 52.9」
The ratio of equity attributable to owners of the parent at the end of the third quarter was 53.1%, remaining above the 50% equity ratio threshold. - FY2020-Q1RestatedAnnual report
「Equity attributable to owners of the parent ratio (%) 54.0 53.0 52.9」
The ratio of equity attributable to owners of the parent at the end of the first quarter was 53.0%, remaining above the 50% equity ratio threshold. - FY2019Equity ratio above the threshold, ROE below the targetAnnual report
「Consolidated ordinary profit for fiscal 2018 was ¥196.2 billion, the equity ratio was 53.8% (down 0.4% year on year), and ROE was 9.4%.」
The equity ratio exceeded the 50% threshold, while ROE was 9.4%, below the stated target of maintaining 10% as a firm floor and aiming for 15% or higher. - FY2019-Q3RestatedAnnual report
「We will maintain an equity ratio of 50% and set net cash equivalent to two months of sales as the minimum, while allocating returns to all stakeholders in a balanced manner after taking into account performance in each fiscal year, investment plans and the management environment.」
Continues to apply the financial criteria of a 50% equity ratio and net cash equivalent to two months of sales as the minimum, together with the profit allocation policy based on performance, investment plans and the management environment. - FY2019-Q2RestatedAnnual report
「We will maintain an equity ratio of 50% and set net cash equivalent to two months of sales as the minimum, while allocating returns to all stakeholders in a balanced manner after taking into account performance in each fiscal year, investment plans and the management environment.」
Continues to apply the financial criteria of a 50% equity ratio and net cash equivalent to two months of sales as the minimum. The equity ratio at the end of the second quarter was 53.5%. - FY2019-Q1First statedAnnual report
「We will maintain an equity ratio of 50% and set net cash equivalent to two months of sales as the minimum, while allocating returns to all stakeholders in a balanced manner after taking into account performance in each fiscal year, investment plans and the management environment.」
For the first time, explicitly stated financial criteria of a 50% equity ratio and net cash equivalent to two months of sales as the minimum, establishing them as the basis for profit allocation in light of performance, investment plans and the management environment.