■Performance Trends of Waseda Academy ＜4718＞

2. Financial Status and Management Indicators

Looking at the financial situation at the end of the 2024/3 fiscal year, total assets were 23,057 million yen, an increase of 1,943 million yen from the end of the previous fiscal year. Looking at the main factors of increase or decrease, cash and deposits increased by 1,359 million yen in current assets, tangible fixed assets increased by 356 million yen due to expansion of existing schools and installation of security cameras, etc., and software (including temporary accounts) increased by 139 million yen along with IT investment.

Total liabilities increased 211 million yen from the end of the previous fiscal year to 8,793 million yen. In terms of current liabilities, unpaid corporate taxes, etc. decreased by 89 million yen, while unpaid amounts increased by 159 million yen and advance payments by 58 million yen. In terms of fixed liabilities, lease debt decreased by 16 million yen, debt related to retirement benefits increased by 63 million yen, and asset removal debt by 57 million yen, respectively. Net assets increased 1,731 million yen from the end of the previous fiscal year to 14,263 million yen. Retained earnings increased by 1,637 million yen due to the recording of net income attributable to parent company shareholders of 2,132 million yen and dividend expenditure of 494 million yen.

Looking at management indicators, it is determined that financial details are in a healthy state, as the capital adequacy ratio, which indicates safety, has risen from 59.4% at the end of the previous fiscal year to 61.9%, and there is no interest-bearing debt and cash and deposits have accumulated to a record high level of over 7 billion yen. The policy is to allocate the accumulated funds to the establishment of new school buildings, the development of new services, or growth investments such as M&A, etc., and shareholder returns. Profitability is also progressing smoothly, with sales operating margin, ROE, and ROA rising for 3 consecutive terms. While there are many companies in the cram school industry that are struggling due to the effects of declining birthrate and rising prices, we are evaluating that we were able to incorporate customer needs and achieve profit growth by actively promoting DX strategies in the market environment that has changed due to the COVID-19 pandemic.

(Author: FISCO Visiting Analyst Joe Sato)