■Performance trends of Kato Seisakusho (6390)

3. Financial Status

On the financial side, total assets at the end of the 2024/3 fiscal year increased 6,531 million yen from the end of the 2023/3 fiscal year to 105,330 million yen. While tangible fixed assets decreased by 2,297 million yen due to the sale of the Thai plant and impairment of the Chinese factory, wholesale assets increased by 3,938 million yen, cash and deposits increased by 2,589 million yen, accounts receivable increased by 1,733 million yen, and deferred tax assets increased by 1,098 million yen. Note that the reason for the increase in wholesale assets is due to an increase in sales from the fiscal year ending 2025/3. Total liabilities increased by 1,886 million yen from the same period to 53,779 million yen. The balance of interest-bearing debt increased by 2,206 million yen to 36,357 million yen. Refinancing was carried out as long-term loan repayment progressed. Total net assets increased by 4,644 million yen from the same period to 51,551 million yen. Retained earnings increased by 3,649 million yen, and exchange conversion adjustment accounts increased by 923 million yen. As a result, the equity ratio rose 1.7 points from the same period to 47.9%.

Since the company recorded a final loss from the fiscal year ending 2020/3 to the fiscal year ending 2022/3, net assets declined, and the capital adequacy ratio also declined, but financial details did not deteriorate to the extent of particular concern. Then, after the fiscal year ending 2023/3, earnings have been on a recovery trend, net assets have also been on an upward trend, and the capital adequacy ratio has also turned to an upward trend. Further strengthening of the financial base is expected in the medium term, but at present, there are no particular concerns, including the cash flow situation, and we believe that we are maintaining financial soundness.

(Author: FISCO Visiting Analyst Masashi Mizuta Exhibition)