負債合計は105,158百万円（前期末比2,568百万円減）となった。流動負債は57,591百万円（同8,992百万円増）となったが、これは主に借入金が5,300百万円、その他の流動負債が1,922百万円及び未払従業員給付が1,427百万円それぞれ増加したことによる。借入金の増加は、長期借入金からの振替によるものだ。非流動負債は47,567百万円（同11,560百万円減）であったが、これは主に長期借入金が8,494百万円及びその他の長期金融負債が2,729百万円それぞれ減少したことによる。長期借入金の減少は、1年以内の借入金の振替や約定返済によるものだ。資本合計は68,176百万円（同437百万円増）となったが、これは主に資本剰余金が2,215百万円減少したが、利益剰余金が3,024百万円増加したことによる。Performance trends of Veru Inc. (6183)
3. Financial position
The total assets for the interim period ending in February 2025 decreased by 2,131 million yen compared to the previous period, to 173,334 million yen. Current assets increased to 29,564 million yen, mainly due to a decrease in trade receivables by 637 million yen, offset by an increase in cash and cash equivalents of 1,823 million yen. The decrease in trade receivables is due to a decrease in sales revenue. Non-current assets decreased to 143,770 million yen, primarily due to a 3,652 million yen decrease in tangible fixed assets resulting from the depreciation of lease assets. Lease assets refer to assets such as the right to use office space during the lease term, which decrease with rent payments.
Total liabilities decreased to 105,158 million yen compared to the previous period, a decrease of 2,568 million yen. Current liabilities increased to 57,591 million yen, mainly due to an increase in borrowings by 5,300 million yen, along with increases in other current liabilities by 1,922 million yen and accrued employee benefits by 1,427 million yen. The increase in borrowings is attributed to transfers from long-term borrowings. Non-current liabilities decreased to 47,567 million yen, mainly due to reductions in long-term borrowings by 8,494 million yen and other long-term financial liabilities by 2,729 million yen. The decrease in long-term borrowings is due to transfers or commitments to repay within 1 year. Total capital increased to 68,176 million yen, primarily due to a decrease of 2,215 million yen in capital surplus, offset by an increase in retained earnings of 3,024 million yen.
As a result, interest-bearing debt decreased to 53,040 million yen compared to the previous period, a decrease of 3,194 million yen. Additionally, with the accumulation of intermediate profits attributable to the parent company's owners, the equity ratio (ownership interest ratio of the parent company's owners) increased by 0.8 percentage points to 38.8% compared to the previous period. It is expected to continue rising due to ongoing profit accumulation. The company's equity ratio significantly exceeds the 5.9% average for the Tokyo Stock Exchange Prime Market services sector as of March 2024. Furthermore, the company's net D/E ratio ((borrowings + long-term borrowings - cash and cash equivalents) ÷ total capital) improved to 0.65 times compared to the previous period by 0.08. Additionally, the company has entered into a commitment line contract with a major bank, adequately preparing for unforeseen circumstances. In addition, the company's ROE for the February 2024 period was 11.5%, and ROA was 6.4%. These figures surpass the Tokyo Stock Exchange Prime Market services sector averages of 6.6% for ROE and 0.7% for ROA. Due to the diverse business models in the service sector to which the company belongs, a simple comparison with industry averages may be challenging. However, the company's safety and profitability are highly regarded.
4. Cash Flow Status
The balance of cash and cash equivalents at the end of the interim period ending in February 2025 was 9,036 million yen, an increase of 1,823 million yen compared to the previous period. Funds generated from operating activities were 12,563 million yen, mainly derived from pre-tax intermediate profits of 4,665 million yen, depreciation and amortization expenses of 4,711 million yen, an increase in accrued consumption tax, and other factors. Funds used for investing activities amounted to 1,637 million yen, primarily for expenditures on acquiring tangible fixed assets for 728 million yen, and investments in securities for 700 million yen. Funds used for financing activities totaled 9,087 million yen, mainly from income from long-term borrowings for 5,000 million yen, expenditures for repayment of long-term borrowings for 7,500 million yen, repayment of lease liabilities for 3,476 million yen, and dividend payments of 2,437 million yen.
As a result, the free cash flow, representing funds available for discretionary use derived from business activities, increased to 10,926 million yen, a rise of 4,637 million yen compared to the same period last year.
(Written by FISCO guest analyst Nozomi Kokushige).
