Maximizing cash flow from operating activities and improving and strengthening the financial position
First written in FY2017. 10 of 15 entries say "Advanced", first in FY2020. Latest entry: 2026-10-30.
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- FY2026AdvancedAnnual report
「Interest-bearing debt increased substantially as the Group's working capital needs grew against the backdrop of the sharp rise in steel prices in recent years. However, steel prices have remained generally stable recently, and the Group is reducing its interest-bearing debt. Alongside the expansion of earnings through sustainable growth, it is essential to build a stable and efficient financial base. From a financial perspective, we also regard ROE, PBR, and the D/E ratio as important indicators.」
The Group continues to pursue financial management that prioritizes reducing interest-bearing debt and ROE, PBR, and the D/E ratio, and has disclosed an equity ratio of 39.9%, ROE of 6.5%, and PBR of 0.6 times for fiscal 2025. - FY2026-H1AdvancedAnnual report
「Operating activities generated ¥2,177 million in cash, compared with a decrease of ¥372 million in the same period of the previous year, because cash inflows, including the recognition of ¥1,507 million in interim net income before income taxes and other adjustments, a decrease of ¥3,370 million in trade receivables, and a decrease of ¥954 million in inventories, exceeded cash outflows, including a decrease of ¥3,029 million in accounts payable and payment of ¥414 million in income taxes. As a result, the equity ratio was 39.0%, compared with 36.1% at the end of the previous consolidated fiscal year.」
Operating cash flow turned from a decrease in the same period of the previous year to an increase, while the equity ratio also rose from 36.1% at the end of the previous fiscal year to 39.0%. - FY2025AdvancedAnnual report
「At the end of the current consolidated fiscal year, the equity ratio rose 3.8 percentage points from the previous consolidated fiscal year to 36.1%, indicating an improving trend in the Group's financial condition.」
The equity ratio rose 3.8 percentage points from 32.3% at the end of the previous fiscal year to 36.1%, while repayments of short-term and long-term borrowings also progressed. - FY2025-H1Operating cash flow declined, while the equity ratio roseAnnual report
「Cash flows from operating activities resulted in a decrease in funds of ¥372 million (an increase of ¥3,290 million in the same period of the previous year), as decreases in funds, including a ¥3,452 million decrease in trade payables and ¥498 million in corporate taxes paid, exceeded increases in funds, including the recognition of pretax interim profit of ¥1,453 million and a ¥1,825 million decrease in trade receivables.」
While operating cash flow turned downward from the same period of the previous year in relation to the target of increasing operating cash flow, the equity ratio rose from 32.3% at the end of the previous consolidated fiscal year to 33.8%. - FY2024-Q3AdvancedAnnual report
「As a result, the equity ratio was 32.1%, compared with 29.9% at the end of the previous consolidated fiscal year.」
The equity ratio rose 2.2 percentage points from 29.9% at the end of the previous consolidated fiscal year to 32.1%, indicating an improvement in the financial base. - FY2024-Q2AdvancedAnnual report
「Cash and cash equivalents during the six months ended the second quarter, hereinafter referred to as “funds,” increased by ¥1,457 million from the end of the previous consolidated fiscal year to ¥4,410 million, as cash inflows, including the recognition of quarterly net income before income taxes and other adjustments and a decrease in inventories, exceeded cash outflows, including a decrease in accounts payable and repayments of short-term and long-term borrowings.」
Operating cash flow increased, and cash on hand rose by ¥1,457 million from the end of the previous consolidated fiscal year through factors including a decrease in inventories. This is described as measurable progress toward maximizing operating cash flow and improving the financial base. - FY2023ReframedAnnual report
「Alongside the expansion of earnings through sustainable growth, it is essential to build a stable and efficient financial base. From a financial perspective, we also regard ROE and the D/E ratio as important indicators.」
In addition to the previous challenge of improving its financial condition, the Group has expanded its explanation to position ROE and the D/E ratio as important financial indicators. - FY2023-Q2AdvancedAnnual report
「Operating activities used ¥320 million in cash, compared with a decrease of ¥3,156 million in the same period of the previous year, because cash outflows, including an increase of ¥1,390 million in trade receivables, an increase of ¥561 million in inventories, and payment of ¥702 million in income taxes, exceeded cash inflows, including the recognition of ¥1,182 million in quarterly net income before income taxes and other adjustments.」
Although operating cash flow was negative, the deficit narrowed from a decrease of ¥3,156 million in the same period of the previous year to a decrease of ¥320 million. - FY2021AdvancedAnnual report
「At the end of the current consolidated fiscal year, the equity ratio rose 3.5 percentage points from the previous consolidated fiscal year to 40.6%, enabling the Group to strengthen its financial condition. Net assets per share also increased by ¥175.44 from the end of the previous consolidated fiscal year. Going forward, the Group's challenge is to secure stable earnings through investments based on its growth strategy and use them to enhance shareholder returns and strengthen its financial base.」
The equity ratio rose from 37.1% to 40.6%, demonstrating the strengthening of the Group's financial condition. The Group also indicates that growth investment, shareholder returns, and strengthening the financial base are interconnected. - FY2020AdvancedAnnual report
「The Group has also raised a total of ¥10 billion, primarily for capital expenditures. Going forward, its challenge is to further strengthen its financial condition by reducing interest-bearing debt and reinforcing shareholders' equity.」
The Group states that it raised a total of ¥10 billion, primarily for capital expenditures, and explicitly identifies reducing interest-bearing debt and reinforcing shareholders' equity as future challenges for strengthening its financial condition. - FY2019ReframedAnnual report
「The Group's challenge is to further strengthen its financial condition by reinforcing shareholders' equity and improving the asset turnover ratio.」
The focus of the disclosure has shifted from the previous wording concerning maximizing operating cash flow, inventory management, and reducing funds advanced on behalf of others to strengthening the financial condition through reinforcing shareholders' equity and improving the asset turnover ratio. - FY2018RestatedAnnual report
「To establish an even more stable management base and maximize operating cash flow, we will pursue appropriate inventory management with a focus on long-term inventory, reduce funds advanced on behalf of others, and improve the asset turnover ratio. We will also use the funds obtained effectively to improve the foundation of our financial condition.」
The Group continues to identify maximizing operating cash flow, inventory management, reducing funds advanced on behalf of others, improving the asset turnover ratio, and improving its financial condition as objectives and means. - FY2017First statedAnnual report
「To establish an even more stable management base and maximize operating cash flow, we will pursue appropriate inventory management with a focus on long-term inventory, reduce funds advanced on behalf of others, and improve the asset turnover ratio. We will also use the funds obtained effectively to improve the foundation of our financial condition.」
The Group identifies maximizing operating cash flow and improving and strengthening its financial condition as objectives, with inventory management, reducing funds advanced on behalf of others, improving the asset turnover ratio, and effective use of funds as the means of achieving them.