Performance trends of Waseda Academy <4718>
2. Financial condition and performance indicators.
Looking at the financial situation at the end of March 2024, total assets increased by ¥194.3 million from the previous year-end to ¥2,305.7 million. Looking at the main factors of increase and decrease, current assets increased by ¥1,359 million due to deposit, tangible fixed assets increased by ¥356 million due to expansion of existing schools, installation of security cameras, etc., and software (including provisional accounts) increased by ¥139 million due to IT investment.
Total liabilities increased by ¥211 million from the previous year-end to ¥879.3 million. In current liabilities, corporate tax payable decreased by ¥89 million, while accounts payable increased by ¥159 million and prepaid income increased by ¥58 million. In long-term liabilities, lease debt decreased by ¥16 million, retirement benefit obligation increased by ¥63 million, and asset retirement obligation increased by ¥57 million. Net assets increased by ¥173.1 million from the previous year-end to ¥1,426.3 million. The surplus increased by ¥163.7 million due to the recording of net income attributable to shareholders of the parent company of ¥2,132 million and dividend payment of ¥494 million.
Looking at the management indicators, the capital adequacy ratio, which indicates safety, increased from 59.4% at the end of the previous period to 61.9%, and the financial condition is judged to be sound, with no interest-bearing debt and current deposits at a record high of over 7 billion yen. As for the accumulated funds, the policy is to use them for growth investments or shareholder returns, such as opening new school buildings, developing new services, or M&A, etc. Profitability is also steadily improving, with revenue operating margin, ROE, and ROA all increasing for three consecutive periods, despite many companies in the cram school industry struggling due to the impact of depopulation and rising prices. We evaluate that we have achieved revenue growth by aggressively promoting DX strategy in the changed market environment due to the pandemic and capturing customer needs.
(Written by FISCO guest analyst, Jo Sato)