High Fixed Costs and Profit Volatility from Declining Revenue
First written in FY2017. 1 of 2 entries say "Restated". Latest entry: FY2018.
The whole theme swung hardest in 2020: 9 of 22 companies on the "Worse" side.
9 other companies' latest entry also says "Restated".
- FY2018RestatedAnnual report
「Particularly in the Transportation Services Group and the Station Buildings and Real Estate Group, fixed costs such as personnel expenses, repair costs and depreciation account for a high proportion of sales. The Group also faces various constraints on reducing expenses due to its public-service nature, applicable laws and regulations, and other factors.」
The Group continues to identify the high fixed-cost burden and constraints on reducing expenses arising from its public-service nature and applicable laws and regulations as risks. - FY2017First statedAnnual report
「Among the businesses operated by the Group, particularly the Transportation Services Group and the Station Buildings and Real Estate Group, fixed costs such as personnel expenses, repair costs and depreciation account for a high proportion of sales. The Group also faces various constraints on reducing expenses due to its public-service nature, applicable laws and regulations, and other factors.」
The Group identifies as a risk its earnings structure, in which fixed costs are high and do not decline proportionately even when revenue falls.