Sanritsu Corp

Sanritsu Corp maintains a debt-to-equity ratio of 0.68 and a current ratio of 1.27, indicating moderate leverage and acceptable short-term liquidity. The company's cash and equivalents of ¥3.8 billion are offset by long-term debt of ¥7.98 billion, resulting in a net cash position of negative ¥4.18 billion. This suggests the company is not in a strong liquidity position to absorb unexpected shocks. Profitability metrics show a return on equity (ROE) of 4.4% and a return on assets (ROA) of 2.09%. These figures are below the industry median for logistics firms, which typically report ROE in the 6-8% range and ROA in the 3-5% range. The company's operating margin of 4.73% (¥951.77 million operating income on ¥20.12 billion revenue) is also below the median for its industry. The company's revenue is distributed across four segments: Packing, Transportation, Warehousing, and Building Leasing. The Packing and Transportation segments are the primary contributors, with the latter accounting for ¥10.12 billion in revenue (50.3% of total) and the former for ¥5.06 billion (25.1%). The company's geographic exposure is primarily domestic, with no material international revenue disclosed in the latest financials. Outlook for FY2024 shows a projected revenue increase of 2.1% year-over-year, driven by higher demand in the logistics sector and expansion in warehousing operations. However, the company's capital expenditure of ¥1.02 billion in the latest period suggests a focus on infrastructure investment, which may moderate near-term free cash flow. The company's risk profile is characterized by medium liquidity risk and low dilution potential. The key flag of negative net cash after subtracting total debt indicates a need for careful monitoring of debt servicing capacity. No recent dilutive events were identified in the latest filings, and the company's diluted shares outstanding remain unchanged at 5.64 million. Recent events include the filing of its latest annual report, which disclosed the expansion of warehousing operations and a strategic shift toward higher-margin logistics services. No material regulatory or legal risks were identified in the latest disclosures.