Shift toward prioritizing capital efficiency and financial soundness with a focus on the cost of equity
First written in FY2024. 3 of 4 entries say "Advanced", first in FY2025. Latest entry: 2026-05-13.
The whole theme swung hardest in 2023: 6 of 40 companies on the "Worse" side.
24 other companies' latest entry also says "Advanced".
- FY2025AdvancedAnnual report
「Under this plan, we are deepening our shift toward management focused on capital efficiency and have designated EPS, ROE and ROA (return on total assets) as the 3 most important management indicators.」
Through fiscal 2024 actual results and implementation of the medium-term plan, we are shifting from management centered on scale and leverage ratios to management focused on EPS, ROE, ROA and the cost of shareholders’ equity. - FY2024First statedAnnual report
「Previously, we focused on operating profit and Tokyu EBITDA as scale indicators and the interest-bearing debt/Tokyu EBITDA ratio as a soundness indicator. Under this plan, we are deepening our shift toward management focused on capital efficiency and have designated EPS, ROE and ROA (return on total assets) as the 3 most important management indicators. We estimate the cost of shareholders’ equity at 5.1%–6.5% as of March 2024, calculated using the CAPM (capital asset pricing model) and earnings yield.」
We are shifting from management centered on profit scale and leverage ratios to management focused on EPS, ROE, ROA and the cost of shareholders’ equity.