$Renesas Electronics (6723.JP)$Launched in 1988, it is mainl...

In the past 5 years, revenue shrunk slightly in the first 3 years, and increased sharply by 39% and 51% from 2021 to 2022. Operating profit also increased sharply in the past two years. Among them, it increased 1.44 times in 2022 and net profit increased 1.14 times in 2022. Interest expenses account for 14.6% of operating profit in 2022, and the interest burden is heavy. The gross margin increased from 43.9% to 56.9% in the past 5 years, and the return on net assets increased to 19.1% in 2022.

In the first three quarters of 2023, revenue shrank by 0.23%, operating profit shrank by 2.9%, and net profit increased sharply by 46.42% due to the conversion of interest expenses into interest income.

The balance ratio has increased from 43.1% to 45.3% in the past 5 years, and has now fallen back to 37.5%. Goodwill increased sharply by 0.7 trillion dollars in 2021, indicating acquisitions. This explains the rapid increase in revenue and profit from 2021 to 2022 and the surge in interest expenses starting in 2021. Usually, acquisition-driven growth has a limited time, and revenue growth will stop in 2023. The ratio and growth rate of accounts receivable and inventory is quite normal. Goodwill and other intangible assets are $1.9 trillion, accounting for 92% of the net assets of $2.06 trillion, and long-term loans of $320.414 billion, accounting for 15.5% of net assets. The leverage ratio is not too high. Treasury shares of $224.592 billion.

Currently, cash is 0.4 trillion dollars, a current ratio of 1, and a quick ratio of 0.76.

Net cash flow over the past five years has been lower than net investment, and no shareholder surplus has been generated.

Currently, the price-earnings ratio is 18.9, and the price-earnings ratio is TTM13.5. Overall, you can choose carefully (⭐️)