■Performance Trends

2. Financial Status and Management Indicators

The total assets of G-7 Holdings＜7508＞ at the end of the 2024/3 fiscal year were 61,872 million yen, an increase of 4,670 million yen from the end of the previous fiscal year. The main factors for the increase or decrease were an increase of 1450 million yen in cash and deposits in current assets, and an increase of 1370 million yen in accounts receivable. As for fixed assets, investment securities decreased by 314 million yen, while tangible fixed assets increased by 1,339 million yen due to the opening of new stores, and deferred tax assets increased by 620 million yen.

Total liabilities increased 1,454 million yen from the end of the previous fiscal year to 31,898 million yen. While interest-bearing debt decreased by 130 million yen, unpaid corporate taxes, etc. increased by 584 million yen, and other current liabilities increased. Also, total net assets increased by 3,216 million yen to 29,973 million yen. Retained earnings increased by 3,440 million yen due to the recording of net income attributable to parent company shareholders and expenditure of 1,719 million yen in dividends, etc., and other securities valuation differences decreased by 191 million yen.

As for management indicators, the trend of improving the financial position has continued since the fiscal year ended 2022/3, with the capital adequacy ratio rising 1.6 points from the end of the previous fiscal year to 48.4%, and the interest-bearing debt ratio falling 4.2 points to 30.6%. Net cash (cash and deposits - interest-bearing debt) has also increased by 1,580 million yen to a record high of 7,968 million yen, and it is judged that financial soundness is high. Also, improvements were made to the number of inventory turnover days, which had deteriorated slightly in the previous fiscal year, such as shortening it by 15.3 days and 1.2 days. The operating margin on sales is 3.6%, the lowest in the last 5 fiscal years, but the decline in profitability in the car-related business is mainly due to the slump in winter goods, and recovery is expected after the 2025/3 fiscal year. As for ROE, it continues to maintain a level of at least 10% at 18.3%.

(Author: FISCO Visiting Analyst Joe Sato)