Management indicators focused on improving ROA and ROE
First written in FY2017. 3 of 9 entries say "Advanced", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2019: 8 of 44 companies on the "Worse" side.
10 other companies' latest entry also says "Other".
- FY2026ROE up, ROA downAnnual report
「ROA for the fiscal year was 6.6%, down 1.6 percentage points from 8.2% in the previous fiscal year. ROE was 12.6%, up 1.5 percentage points from 11.1% in the previous fiscal year.」
Under the policy of aiming for ROE above the cost of capital, ROE rose to 12.6%, while ROA declined to 6.6%. - FY2023AdvancedAnnual report
「Although performance for the fiscal year recovered from the previous fiscal year, both ROA and ROE remained weak. We will seek to improve the profit margin and total asset turnover, which are common to both indicators, and for ROE, we will consider the optimal level within a range of financial leverage below a certain level, or an equity ratio above a certain level, and aim for ROE above the cost of capital over the medium to long term.」
ROA improved from △3.1% in the previous fiscal year to 0.4%, while ROE improved from △7.5% to △0.5%. The policy of aiming for ROE above the cost of capital over the medium to long term has been maintained. - FY2022WorsenedAnnual report
「For the fiscal year, ROA and ROE were both weak, partly because of one-time expenses associated with the absorption-type company split described above. We will seek to improve the profit margin and total asset turnover, which are common to both indicators, and for ROE, we will consider the optimal level within a range of financial leverage below a certain level, or an equity ratio above a certain level, and aim for ROE above the cost of capital over the medium to long term.」
ROA declined from 1.0% in the previous fiscal year to △3.1%, while ROE declined from 3.6% to △7.5%. The policy of improving the profit margin and total asset turnover and achieving ROE above the cost of capital has been maintained. - FY2022-Q1AdvancedAnnual report
「As a result, the digital signage-related business recorded revenue of ¥338.757 million, up 54.3% year on year, and segment profit of ¥36.207 million, up 233.3%.」
Revenue in the digital signage-related business increased 54.3% year on year and segment profit increased 233.3%, indicating progress in business earnings that should contribute to improving ROA and ROE. However, this filing does not state the ROA or ROE figures themselves. - FY2021AdvancedAnnual report
「For the fiscal year, ROA and ROE both improved significantly year on year, partly because the digital signage-related business won large orders in the sports market. We will continue to seek to improve the profit margin and total asset turnover, which are common to both indicators, and for ROE, we will consider the optimal level within a range of financial leverage below a certain level, or an equity ratio above a certain level, and aim for ROE above the cost of capital over the medium to long term.」
ROA improved from △9.6% to 1.0%, while ROE improved from △43.4% to 3.6%. The targets of improving the profit margin and total asset turnover and achieving ROE above the cost of capital have been maintained. - FY2020WorsenedAnnual report
「For the fiscal year, ROA and ROE were both weak, owing to factors including the impact of the COVID-19 pandemic on the digital signage-related business and initial investments and infrastructure development in the Value creating business. We will seek to improve the profit margin and total asset turnover, which are common to both indicators, and for ROE, we will consider the optimal level within a range of financial leverage below a certain level, or an equity ratio above a certain level, and aim for ROE above the cost of capital over the medium to long term.」
ROA declined from 0.4% in the previous year to △9.6%, while ROE declined from 1.9% to △43.4%. The targets of improving the profit margin and total asset turnover and achieving ROE above the cost of capital have been maintained. - FY2019RaisedAnnual report
「Although we have not disclosed a medium-term plan, we will aim for ROE above the cost of capital. We will seek to improve the profit margin and total asset turnover, which are common to both indicators, and for ROE, we will consider the optimal level within a range of financial leverage below a certain level, or an equity ratio above a certain level, and aim for ROE above the cost of capital over the medium to long term.」
In addition to the existing policy of improving ROA and ROE, the company explicitly stated its target of achieving ROE above the cost of capital. ROA was 0.4% and ROE was 1.9% for the fiscal year, down 0.4 percentage points and 0.9 percentage points, respectively, from the previous year. - FY2018RestatedAnnual report
「To raise the return on invested capital, we recognize return on assets (ROA), or ordinary income to total assets, and to improve capital efficiency, return on equity (ROE) as important management indicators, and will work to improve them.」
The policy of improving ROA and ROE as important management indicators has been reiterated together with an explanation of the business portfolio, including the Value creating business. - FY2017First statedAnnual report
「We intend to maintain sustainable management stability and growth by strengthening our operations business, which comprises software and services built on the hardware sold through our information equipment business, and our equipment leasing business, which provides services using our products. Accordingly, to raise the return on invested capital, we recognize return on assets (ROA), or ordinary income to total assets, and to improve capital efficiency, return on equity (ROE) as important management indicators, and will work to improve them.」
The company has for the first time explicitly stated its policy of strengthening its operations and equipment leasing businesses as its core businesses and working to improve ROA and ROE as target management indicators.