Performance trend of Meito Facility Works (1717)
3. Financial Condition and Management Indicators
Looking at the financial situation at the end of March 2024, the total assets amounted to 7,323 million yen, an increase of 703 million yen compared to the previous period. When looking at the major increase and decrease factors, current assets increased by 108 million yen, while accounts receivable and contract assets increased by 274 million yen. In terms of fixed assets, intangible fixed assets increased by 59 million yen, while investment securities increased by 150 million yen due to investment in Tokyo Green Bonds. Liabilities amounted to 2,238 million yen, an increase of 242 million yen compared to the previous period. In terms of current liabilities, bonus reserves increased by 142 million yen, while accounts payable and accrued expenses increased by 75 million yen and 77 million yen respectively. Net assets amounted to 5,084 million yen, an increase of 460 million yen. While paying out dividends of 380 million yen, the company also recorded a net income of 790 million yen, while reducing its own shares by 38 million yen (increase factor).
Looking at the business indicators, the self-capital ratio which indicates the safety of management is maintained at a high level of 69.2%, and since there is no interest-bearing debt, the financial condition is considered to be sound. As for the profitability indicators, the sales-to-income ratio is 20.3%, and ROA and ROE have been steadily high over the past few periods at 15.4% and 16.3% respectively. We believe that this is because the company has a high level of competitiveness in securing stable orders every period, with large companies and government agencies with projects spanning multiple years at the forefront, as well as thorough cost management by prioritizing business expansion and not pursuing unreasonable personnel increases.
Looking at the management indicators, the self-owned capital ratio, which indicates the safety of management, is maintained at a high level of 69.2%, and the financial content is judged to be in a healthy state due to the absence of interest-bearing debt. In terms of profitability indicators, the sales revenue operating profit margin is 20.3%, ROA is 15.4%, and ROE is 16.3%, all of which have been stable at a high level for several periods. We believe that this is because the company has a high level of competitiveness that enables it to win stable orders every period, with large companies and government agencies with projects spanning several years being the main customers. In addition, we believe that the company's thorough cost management, such as not excessively increasing staff for business expansion, is also a factor.
(Written by FISCO guest analyst, Jo Sato)