Sensitivity of operating profit to the fixed-cost burden
First written in FY2017. 5 of 12 entries say "Materialised", first in FY2021-Q1. Latest entry: 2026-05-14.
Seibu Holdings moved to the "Worse" side of this theme in 2025, 2 years after the typical company in this theme (2023).
The whole theme swung hardest in 2020: 8 of 21 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- 2026-05-14MaterialisedResults presentation
「Revenue increased, but profit declined due to higher personnel expenses, depreciation and amortization, and other costs.」
In the urban transportation and railway-line businesses, the impact of fixed-cost burdens materialized as operating income declined despite higher revenue because of increased personnel expenses, depreciation and amortization, and other costs. - FY2026-H1MaterialisedAnnual report
「Operating profit decreased by ¥2.480 billion year on year to ¥31.308 billion, due to increases in various expenses, including personnel costs, including wage increases, and depreciation and amortization associated with higher capital investment,」
The impact of the fixed-cost burden materialized, with higher expenses such as personnel costs and depreciation and amortization causing operating profit to decline even as operating revenue increased. - FY2024-Q3MitigatedAnnual report
「We also pursued fixed-cost reduction measures, including bringing PM and BM operations in-house.」
In the real estate business, the Group proceeded with bringing PM and BM operations in-house, continuing its response to the fixed-cost burden. - FY2023-Q1MitigatedAnnual report
「In addition to higher revenue, initiatives that contributed to reducing fixed costs, including a review of vehicle operations and bringing operations in-house, also contributed,」
To address the fixed-cost burden, the Group reviewed vehicle operations and brought operations in-house, contributing to an improvement in operating profit. - FY2022-Q3RestatedAnnual report
「Although operating cash flow is expected to decline as revenue falls, in addition to reducing or deferring nonessential and nonurgent costs, improving the earnings structure and controlling cash flow, we secured the working capital needed in the near term through borrowings and an expansion of the commitment line from the previous consolidated fiscal year,」
To address fixed costs and cash outflows during the pandemic, the Group continued to reduce costs, improve its earnings structure, and use borrowings and commitment lines. - FY2022-Q2MitigatedAnnual report
「Overall, we implemented fixed-cost reduction measures, including pursuing efficient operations through agile changes to business activities and bringing operations in-house.」
To address the fixed-cost burden, the Group implemented agile changes to business activities and brought operations in-house. - FY2022-Q1MitigatedAnnual report
「In addition to higher revenue, initiatives that contributed to reducing fixed costs, including reductions in executive compensation and employee bonuses, as well as reviews of vehicle operations, restructuring of bus routes, and bringing operations in-house, also contributed,」
To address the fixed-cost burden, the Group reduced executive compensation and employee bonuses, reviewed vehicle operations, restructured bus routes, and brought operations in-house. - FY2021RestatedAnnual report
「The losses from temporary closures and other measures recognized in the current consolidated fiscal year consisted of fixed costs, including personnel expenses and depreciation and amortization, incurred during the closure of operating facilities in response to requests or statements by the government and local authorities to prevent the spread of COVID-19.」
Fixed costs of ¥18.904 billion were recognized for the year as losses from temporary closures and other measures. - FY2021-Q3MaterialisedAnnual report
「The losses from temporary closures and other measures recognized in the cumulative third quarter of the current consolidated fiscal year consisted of fixed costs, including personnel expenses and depreciation and amortization, incurred during the closure of operating facilities in response to requests or statements by the government and local authorities to prevent the spread of COVID-19.」
The fixed-cost burden during temporary closures was actually recognized as a loss, with losses from temporary closures and other measures totaling ¥14.433 billion. - FY2021-Q2MaterialisedAnnual report
「The losses from temporary closures and other measures recognized in the cumulative second quarter of the current consolidated fiscal year consisted of fixed costs, including personnel expenses and depreciation and amortization, incurred during the closure of operating facilities in response to requests or statements by the government and local authorities to prevent the spread of COVID-19.」
The fixed-cost burden was actually recognized as losses from temporary closures and other measures, with losses for the cumulative second quarter of the current fiscal year totaling ¥12.962 billion. - FY2021-Q1MaterialisedAnnual report
「The losses from temporary closures and other measures recognized in the cumulative first quarter of the current consolidated fiscal year consisted of fixed costs, including personnel expenses and depreciation and amortization, incurred during the closure of operating facilities in response to requests or statements by the government and local authorities to prevent the spread of COVID-19.」
The risk that fixed-cost burdens would affect operating profit materialized, with fixed costs incurred during temporary closures recognized as extraordinary losses. - FY2017First statedAnnual report
「Because a substantial portion of operating costs consists of fixed costs such as personnel expenses and depreciation and amortization, even a relatively small decline in operating revenue can have a significant impact on operating profit.」
The fixed-cost ratios of the urban transportation and railway-corridor, hotel and leisure, and real estate businesses indicate a structure in which declines in revenue have a significant impact on profit.