Performance trend of Forval (8275).
2. Financial condition and performance indicators.
Total assets at the end of March 2024 increased by JPY 4,871 million from the previous period to JPY 40,730 million. Current assets increased by JPY 2,808 million, mainly due to an increase of JPY 888 million in lease investment assets and an increase of JPY 765 million in cash and deposits. Fixed assets increased by JPY 2,063 million, mainly due to an increase of JPY 971 million in goodwill by M&A and an increase of JPY 915 million in tangible fixed assets.
Total liabilities increased by JPY 2,758 million from the previous period to JPY 22,979 million. Current liabilities increased by JPY 287 million, mainly due to an increase of JPY 500 million in advances received. Fixed liabilities increased by JPY 2,470 million, mainly due to an increase of JPY 2,389 million in long-term borrowings accompanying new consolidations. The balance of interest-bearing liabilities (short-term loans, long-term loans, and bonds) was JPY 4,088 million. In terms of management indicators (as of the end of March 2024), the current ratio was 162.4% (148.5% at the end of the previous period), and the equity ratio was 40.5% (40.8% at the end of the previous period), maintaining a sound and stable financial base. The equity ratio has increased by 7.9 points from 32.6% at the end of five years ago (March 2019). This is due to the decrease in prepaid sales incentives associated with customer acquisition due to the shift in Forval Telecom's business model in the previous period. With regard to profitability, ROE (net income for the period ÷ equity) increased by 0.9 points from the previous period to 12.9%, ROA (operating profit ÷ total assets) increased by 1.0 points to 9.0%, and ROS (operating profit ÷ revenue) increased by 1.0 points to 5.1%, improving in all indicators and refining a highly efficient and profitable business model.
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(Written by FISCO Guest Analyst, Hideo Kakuta)