■Performance Trends
3. Financial Status and Management Indicators
(1) Balance sheet
The total assets of Apple International ＜2788＞ at the end of the 2023/12 fiscal year increased 914 million yen from the end of the previous fiscal year to 16,871 million yen. Since sales recording standards for the used car export business were changed from conventional shipping standards to payment standards by applying “accounting standards relating to profit recognition” etc. in the previous fiscal year, accounts receivable for current assets decreased, and products increased. In the fiscal year ending 2023/12, inventory was strategically increased in preparation for risks in the purchasing environment. Commodities and products increased 1,622 million yen from the same period to 6,326 million yen. The inventory turnover period was extended from 2.2 months in the previous fiscal year to 2.8 months. The increase in inventory has led to a steady rise in sales for the 2024/12 fiscal year. In the debt section, interest-bearing debt decreased by 22 million yen. Net income attributable to parent company shareholders also exceeded 1 billion yen, and retained earnings increased by 943 million yen. As for undisposed profits, there is a prospect that the automobile industry will drastically change in the future, so we are preparing for future investments such as system construction.
Since Tokio Marine & Nichido Fire Insurance Co., Ltd. intended to sell the company formula in 2023/8, it acquired 90,000 shares of treasury stock in order to avoid an impact on supply and demand in the stock market and improve capital efficiency. Major general insurance companies have adopted a policy of reducing policy holdings to zero. The treasury stock held at the end of the 2023/12 fiscal year will be 1.02 million shares, which is equivalent to 7.4% of the total number of shares issued, including treasury shares.
Big Motor Co., Ltd. was revoked from the general insurance company in 2023/11 due to improper automobile insurance claims. General insurance companies also received administrative sanctions from the Financial Services Agency for business improvement orders. The company places importance on corporate governance, does not handle non-life insurance, and there were no inquiries from the Financial Services Agency.
(2) Management indicators
The current ratio representing short-term solvency as a financial safety index was 245.2%, which exceeded the desired level of 200%. The capital adequacy ratio, which looks at long-term solvency, was 50.0%, up 3.2 points from the end of the previous fiscal year. Financial soundness has increased, and financial leverage has declined. Also, since there was an increase in sales and a decrease in profit, the net profit margin on sales declined, so ROE (net profit ratio on equity) decreased 6.5 points from the previous fiscal year to 12.7%, but we were able to maintain a high level of 10% or more.
(3) Cash flow statements
Cash and cash equivalents at the end of the 2023/12 fiscal year increased by 35 million yen from the end of the previous fiscal year to 4,369 million yen. Cash flow from operating activities was an expenditure of 275 million yen due to net income before tax adjustments of 1,267 million yen and an increase of 352 million yen in provisions for debt loss, etc., while there was an increase in inventory assets of 1,657 million yen and corporate tax payments of 414 million yen. Cash flow from investment activities was income of 449 million yen due to loan recovery. As for cash flow from financial activities, there was an increase of 700 million yen in short-term loans, but expenses due to repayment of long-term loans were 1,172 million yen, resulting in an expenditure of 138 million yen.
(Written by FISCO Guest Analyst Ken Segawa)