Management Focused on ROIC, ROE and the Cost of Capital
First written in FY2024-Q3. 3 of 7 entries say "Cited as achieved", first in 2026-05-13. Latest entry: FY2026.
The whole theme swung hardest in 2023: 6 of 40 companies on the "Worse" side.
10 other companies' latest entry also says "Other".
- FY2026Medium-term targets not achieved; WACC remains exceededAnnual report
「For the fiscal year ending March 2028, the final year of the medium-term management plan, the Company aims to achieve revenue growth, measured by a revenue CAGR of 12.3% or more, and profitability, measured by an operating margin of 5% or more. For the period covered by the plan, from the fiscal year ending March 2026 through the fiscal year ending March 2028, it uses average ROE of 20% or more and average ROIC of 15% or more as benchmarks for financial efficiency, and financial leverage of 2.5 times or less in the fiscal year ending March 2028 as a benchmark for financial soundness. During the consolidated fiscal year, ROE was 10.9% and ROIC was 11.1%, and the Company maintained ROIC above WACC, which was approximately 8.2%.」
Against the medium-term ROE and ROIC benchmarks, ROE was 10.9% and ROIC was 11.1% for the fiscal year ending March 2026. Meanwhile, ROIC remained above WACC of approximately 8.2%. - FY2025Defining specific medium-term financial targetsAnnual report
「For the period covered by the medium-term management plan, from the fiscal year ending March 2026 through the fiscal year ending March 2028, the Company uses average ROE of 20% or more and average ROIC of 15% or more as benchmarks for financial efficiency. For the fiscal year ending March 2028, the final year of the plan, it uses financial leverage of 2.5 times or less as a benchmark for financial soundness.」
In addition to its policy of emphasizing ROE and ROIC and aiming to establish a structure in which ROIC exceeds WACC, the Company has specified benchmarks for average ROE and ROIC from the fiscal year ending March 2026 through the fiscal year ending March 2028, as well as financial leverage. ROE was 12.3% and ROIC was 13.1% for the fiscal year ending March 2025, with ROIC exceeding WACC. - FY2024AdvancedAnnual report
「During the consolidated fiscal year, ROIC exceeded the cost of capital, namely the weighted average cost of capital (WACC).」
The disclosure states that ROIC exceeded WACC during the consolidated fiscal year, following the Company’s goal of establishing a structure in which ROIC exceeds WACC. - FY2024-Q3First statedAnnual report
「The Company will closely monitor its cost of capital, including the cost of equity and weighted average cost of capital (WACC), and pursue earnings power and improved capital efficiency while using return on equity (ROE) and return on invested capital (ROIC) as its key management indicators. It will also work to enhance corporate value by establishing a structure in which ROIC consistently exceeds the cost of capital, namely the weighted average cost of capital (WACC).」
The Company has designated ROE and ROIC as key indicators and aims to establish a structure in which ROIC exceeds WACC.