Performance trends of IX Knowledge Co., Ltd. (9753)

2. Financial Condition and Business Indicators

Total assets at the end of March 2024 was ¥1.3652 billion, an increase of ¥92.8 million from the previous period. Of this, current assets increased by ¥55.8 million, mainly due to an increase in cash and deposits of ¥61.7 million. Fixed assets increased by ¥37 million, mainly due to an increase in investments and other assets of ¥44.6 million. The balance of cash and deposits increased by ¥61.7 million to ¥579.8 million.

Total liabilities decreased by ¥34.1 million from the previous period to ¥483.9 million. Of this, current liabilities decreased by ¥19.9 million, mainly due to a decrease in unpaid corporate taxes. Fixed liabilities decreased by ¥19 million, mainly due to a decrease in liabilities related to retirement benefits. The balance of interest-bearing debt is very low at ¥200 million, approaching a virtually debt-free management level.

Total shareholders' equity increased by ¥131.7 million from the previous period to ¥881.3 million. This is mainly due to the posting of net income attributable to the parent company shareholders, which increased retained earnings by ¥98.5 million.

The current ratio greatly surpasses the short-term safety benchmark of 200%, at 303.3%. Also, the self-capital ratio is high at 64.6%, and the medium- to long-term safety is also high. The ROE has increased to 15.6% (from 14.9% in the previous year), representing a high capital efficiency and profitability. The company has maintained a sound financial structure even after the M&A in February 2023, and has sufficient financial leverage for further M&A in the future.

(Written by FISCO Guest Analyst, Hideo Kakuta)