Strengthening the Financial Position and Improving Capital Efficiency
First written in FY2020. 7 of 21 entries say "Advanced", first in FY2021-Q1. Latest entry: FY2027-H1.
Grandy House moved to the "Worse" side of this theme in 2022, 3 years before the typical company in this theme (2025).
The whole theme swung hardest in 2022: 5 of 34 companies on the "Worse" side.
14 other companies' latest entry also says "Other".
- FY2027-H1Earnings improvement accompanied by inventory burdenAnnual report
「As a result of focusing on thorough inventory management and appropriate sales pricing, profit per home sold continued to improve. The decrease in cash from operating activities was ¥494 million, compared with an increase of ¥75 million in the same period of the previous year. This was mainly due to a decrease in cash resulting from an increase in inventories associated with the acquisition of land for sale and other activities, despite recording interim net income before tax adjustments.」
While profit per unit sold improved through inventory management and optimization of selling prices, operating cash flow declined as inventories increased due to the acquisition of land for subdivision, resulting in both improved profitability and a greater inventory burden. - FY2026AdvancedAnnual report
「We will work to improve PBR by restoring ROE and strengthening engagement with stakeholders.」
The policy of strengthening the financial base and improving capital efficiency was explicitly expanded to include restoring ROE and improving PBR through stakeholder engagement. - 2026-05-14OtherResults
「設備取得や投資有価証券の取得に伴う資金需要が発生しましたが、営業活動によるキャッシュ・フローによりこれらの資金需要を賄い、有利子負債の増加は小幅にとどめることができました。」
投資資金需要が発生した一方、営業キャッシュ・フローで賄い、有利子負債の増加を小幅に抑えた。 - FY2026-H1Capital expenditure and project investment alongside debt financingAnnual report
「The increase in cash from operating activities was ¥75 million, compared with an increase of ¥3.983 billion in the same period of the previous year. The increase in cash from financing activities was ¥70 million, compared with a decrease of ¥2.992 billion in the same period of the previous year. This was mainly because funds for equipment acquisitions and project investments in the real estate sales segment were financed through interest-bearing debt.」
Although the increase in operating cash flow was smaller than in the same period of the previous year, funds for equipment acquisitions and project investments were financed through interest-bearing debt, resulting in a ¥70 million increase in cash from financing activities. - FY2025AdvancedAnnual report
「The increase in cash from operating activities was ¥8.637 billion, compared with a decrease of ¥2.223 billion in the previous fiscal year. This was mainly due to a reduction in inventories as inventory sales progressed. We will work to improve PBR by restoring ROE and strengthening engagement with stakeholders.」
Operating cash flow improved substantially through inventory sales, strengthening the financial base. In addition, the new medium-term management plan explicitly identified the restoration of ROE and improvement of PBR through stakeholder engagement as measures to be taken. - FY2025-H1AdvancedAnnual report
「The increase in cash from operating activities was ¥3.983 billion, compared with a decrease of ¥3.425 billion in the same period of the previous year, representing a significant improvement. This was mainly due to progress in inventory sales, which reduced inventories. ... The decrease in cash from financing activities was ¥2.992 billion, compared with an increase of ¥972 million in the same period of the previous year. This was mainly due to progress in repaying borrowings as inventory sales advanced.」
Operating cash flow improved substantially as inventory sales progressed, and borrowings were also repaid. The disclosure indicates concrete progress toward improving capital efficiency and the financial base. - FY2024-Q3WorsenedAnnual report
「Liabilities increased by ¥4.555 billion from the end of the previous consolidated fiscal year to ¥51.004 billion. The main factor was an increase in borrowings accompanying the increase in inventories.」
Against the policy of improving capital efficiency and strengthening the financial base, increased inventories and borrowings resulting from the slower pace of sales came to the fore, increasing the financial burden. - FY2024-Q2WorsenedAnnual report
「Consolidated total assets at the end of the second three-month consolidated accounting period under review increased by ¥1.079 billion from the end of the previous consolidated fiscal year to ¥73.724 billion. The main factors were the acquisition of land for sale accompanying the expansion of the real estate sales business area and an increase in inventories resulting from the slower pace of new-home sales.」
Land acquisitions for area expansion and the slower pace of sales increased inventories, bringing the inventory burden to the fore rather than strengthening the financial base and improving capital efficiency. - FY2024-Q1WorsenedAnnual report
「At the end of the first quarter of the current consolidated fiscal year, consolidated total assets increased by ¥3,227 million from the end of the previous consolidated fiscal year to ¥75,873 million. The main factor was an increase in inventory due to the acquisition of development sites and other factors accompanying the expansion of the geographical scope of the real estate sales business. Liabilities increased by ¥4,048 million to ¥50,497 million, mainly due to an increase in interest-bearing liabilities associated with the acquisition of development sites and other factors.」
The acquisition of land for sale accompanying the expansion of the business area increased inventories and interest-bearing debt, bringing inventory investment and debt expansion to the fore rather than strengthening the financial base and improving capital efficiency. - FY2023WorsenedAnnual report
「The balance of interest-bearing debt at the end of the consolidated fiscal year was ¥39.782 billion, an increase of ¥10.873 billion from the previous consolidated fiscal year.」
Following the acceleration of acquisitions of real estate for sale and rental properties, the balance of interest-bearing debt reached ¥39.782 billion, an increase of ¥10.873 billion year on year. - FY2023-Q3WorsenedAnnual report
「Liabilities increased by ¥7.421 billion from the end of the previous consolidated fiscal year to ¥43.663 billion. The main factor was an increase in borrowings associated with the acquisition of subdivision land and other factors.」
Investment in inventories associated with land acquisitions and borrowings increased, bringing inventory investment and debt expansion to the fore rather than strengthening the financial base and improving capital efficiency. - FY2023-Q2WorsenedAnnual report
「Consolidated total assets at the end of the second three-month consolidated accounting period under review increased by ¥1.532 billion from the end of the previous consolidated fiscal year to ¥62.434 billion. The main factor was an increase in inventories resulting from the acquisition of land for sale and other activities accompanying the expansion of the real estate sales business area. Liabilities increased by ¥1.059 billion from the end of the previous consolidated fiscal year to ¥37.301 billion. The main factor was an increase in borrowings associated with the acquisition of land for sale and other activities.」
The acquisition of land for sale accompanying the expansion of the business area increased inventories and borrowings, bringing inventory investment and debt expansion to the fore. - FY2023-Q1WorsenedAnnual report
「At the end of the first quarter of the current consolidated fiscal year, consolidated total assets increased by ¥1,409 million from the end of the previous consolidated fiscal year to ¥62,311 million. The main factor was an increase in inventory due to the acquisition of development sites accompanying the expansion of the geographical scope of the real estate sales business and other factors. Liabilities increased by ¥1,546 million from the end of the previous consolidated fiscal year to ¥37,788 million. The main factor was an increase in borrowings associated with the acquisition of the aforementioned development sites and other factors.」
The acquisition of land for sale accompanying the expansion of the business area increased inventories and borrowings, bringing inventory investment and debt expansion to the fore rather than improvements in the financial base. - FY2022Inventory investment and debt repayment in parallelAnnual report
「We will improve capital efficiency and inventory turnover by carefully selecting land purchases, strengthening inventory management and thoroughly promoting the early sale of properties held for sale, while maintaining and securing ample credit facilities in preparation for future uncertainty.」
While continuing the policy of improving inventory turnover, promoting early sales and securing credit facilities, we acquired land for sale and repaid borrowings during the fiscal year in parallel. - FY2022-Q3RestatedAnnual report
「Although we borrowed to finance the increase in inventories, total liabilities increased only slightly as we proceeded with repayments of borrowings that had been increased to secure cash liquidity during the COVID-19 pandemic.」
We borrowed to acquire land for sale while simultaneously repaying borrowings taken out to secure cash liquidity, thereby limiting the increase in total liabilities. - FY2022-Q2AdvancedAnnual report
「At the end of the second quarter of the current consolidated fiscal year, consolidated total assets decreased by ¥445 million from the end of the previous consolidated fiscal year to ¥57,625 million. Although inventory increased due to the acquisition of development sites accompanying the expansion of the geographical scope of the real estate sales business, the main factor was a decrease in cash and deposits resulting from the repayment of borrowings and other items. Liabilities decreased by ¥1,149 million to ¥33,760 million, mainly due to the repayment of borrowings and other items.」
We repaid borrowings while acquiring land for sale, reducing liabilities by ¥1.149 billion. The disclosure describes concrete progress toward improving the financial base. - FY2022-Q1AdvancedAnnual report
「At the end of the first quarter of the current consolidated fiscal year, consolidated total assets decreased by ¥886 million from the end of the previous consolidated fiscal year to ¥57,184 million. Although inventory increased due to the acquisition of development sites accompanying the expansion of the geographical scope of the real estate sales business, the main factor was a decrease in cash and deposits resulting from the repayment of borrowings and other items. Liabilities decreased by ¥804 million to ¥34,106 million, mainly due to the repayment of borrowings and other items.」
We repaid borrowings while continuing to acquire land for sale, reducing liabilities by ¥804 million. The disclosure describes concrete progress toward improving the financial base. - FY2021-Q3RestatedAnnual report
「Consolidated total assets at the end of the third three-month consolidated accounting period under review increased by ¥2.520 billion from the end of the previous consolidated fiscal year to ¥58.506 billion. The main factors were the acquisition of land for sale accompanying the expansion of the real estate sales business area and an increase in cash and deposits resulting from securing cash liquidity in preparation for future uncertainty caused by the spread of COVID-19 and other factors.」
We continued acquiring land for sale while securing cash liquidity in preparation for future uncertainty. Cash and deposits increased, while borrowings also rose. - FY2021-Q2AdvancedAnnual report
「Consolidated total assets at the end of the second three-month consolidated accounting period under review increased by ¥2.854 billion from the end of the previous consolidated fiscal year to ¥58.840 billion. The main factors were the acquisition of land for sale accompanying the expansion of the real estate sales business area and an increase in cash and deposits resulting from securing cash liquidity.」
In addition to acquiring land for sale, cash and deposits increased as we secured cash liquidity, bringing total assets at the quarter-end to ¥58.840 billion. - FY2021-Q1AdvancedAnnual report
「Consolidated total assets at the end of the first three-month consolidated accounting period under review increased by ¥4.401 billion from the end of the previous consolidated fiscal year to ¥60.387 billion. The main factors were the acquisition of land for sale accompanying the expansion of the real estate sales business area and an increase in deposits resulting from securing cash liquidity.」
In addition to acquiring land for sale, we increased deposits to secure cash liquidity. While measures were implemented to maintain a safety margin in cash management, short-term borrowings also increased. - FY2020First statedAnnual report
「We will improve capital efficiency and inventory turnover by further strengthening inventory management and thoroughly promoting the early sale of properties held for sale, while seeking to maintain and secure ample credit facilities to provide the necessary cash on hand.」
In light of the increase in the interest-bearing debt ratio and the risk of fluctuations in orders, we identified improving inventory turnover, early sales, and securing cash liquidity and credit facilities as priority measures for the first time.