YAMATO Holdings and SG Holdings are the most powerful land transportation company in Japan.
But financial results of both companies are highly different.
Especially, Earning structures were interesting for me.
I introduce you about them.
- BS: Balance Sheet
- PL: Profit and Loss Statement
- ROA (Return on Assets)
- Current ratio
- Equity ratio
- Sales to gross profit ratio
- Sales to operating income ratio
- Sales to ordinary profit ratio
- What is Sales to ordinary profit ratio?
- Sales to various profit ration between YAMATO Hlds. & SG Hlds.
- Labor share
- Gross profit per person
BS: Balance Sheet
What is BS(Balance Sheet)?
Balance Sheet is a sheet which has
“ASSETS” on right side,
“Liabilities and shareholder’s equities” on left side.
The feature is that the left and right total values are always the same.
BS between YAMATO Hlds. & SG Hlds.
Total assets of YAMATO holdings are higher than SG holdings.
PL: Profit and Loss Statement
What is PL(Profit and Loss Statement)？
PL is a summary of profit and loss of money for a certain period (3 months, 1 year, etc…).
1.Gross profit
“Gross profit” = “Sales” – “Cost of sales”
2.Operating income
“Operating income” = “Gross profit” – “Selling and general administrative expenses”
3.Ordinary profit
“Ordinary profit” = “Operating income” + “Non-operating profit and loss (stock shares, etc…)”
4.Pre-tax profit
“Pre-tax profit” = “Ordinary profit” – “Extraordinary profit and loss”
5.Net income
“Net income” = “Pre-tax profit” – “Corporate tax and etc…”
PL between YAMATO Hlds. & SG Hlds.
The sales of YAMATO holdings are over 1.6 trillion yen.
On the other hand, the sales of SG holdings are over 1.1 trillion yen.
ROA (Return on Assets)
What is ROA？
ROA is one of the most basic indicators of a company’s profit efficiency.
ROA represents how much profit the company made from its total assets.
In other words, it could be translated into the company’s yield.
An important job of managers is to raise ROA.
ROA[%]=Ordinary profit÷total assets×100
*calculated from BS and PL.
ROA between YAMATO Hlds. & SG Hlds.
The sales of YAMATO holdings are higher than SG holdings.
But ROA of SG is higher than YAMATO holdings.
This will be explained later.
Current ratio
What is Current ratio?
The current ratio is one of the indicators of short-term safety of company.
The larger the current ratio, the higher the short-term safety because it is difficult for the funds to short.
Current ratio(%)=Current Assets÷Current Liabilities×100
*calculated from BS.
Current ratio between YAMATO Hlds. & SG Hlds.
Both of Current ratio are over 100%.
Therefore, short-term safety of both are good.
Equity ratio
What is Equity ratio?
Equity ratio is one of the indicators of the long-term safety of a company.
The higher the equity ratio, the higher the long-term safety.
Equity ratio(%)=Shareholder’s equities ÷ total assets × 100
*calculated from BS.
Equity ratio between YAMATO Hlds. & SG Hlds.
Both of Equity ratios are almost same.
Sales to gross profit ratio
What is Sales to gross profit ratio?
Sales to gross profit ratio is one of the indicators of profitability.
The more Sales to gross profit ratio, it could be said the more efficient company management.
Sales to gross profit ratio(%)=Gloss profit ÷ Sales × 100
*calculated from PL.
Sales to operating income ratio
What is Sales to operating income ratio?
Sales to operating income ratio is one of the indicators of profitability.
The more sales to operating income ratio, it could be said the more efficient company management which suppresses selling and general administrative expenses.
Sales to operating income ratio(%)=Operating income ÷ Sales ×100
*calculated from PL.
Sales to ordinary profit ratio
What is Sales to ordinary profit ratio?
Sales to ordinary profit ratio is one of the indicators of profitability.
The higher the sales to ordinary profit ratio, the more profits other than the main business, and the better the management.
Sales to ordinary profit ratio(%)=Ordinary profit÷ Sales × 100
*calculated from PL.
Sales to various profit ration between YAMATO Hlds. & SG Hlds.
From above graph, any ratios of SG holdings are higher than YAMATO holdings.
This graph is time transition of sales.
The sales of YAMATO holdings have always exceeded SG holdings.
But ordinary profit of SG holdings is higher than YAMATO holdings in FY2018.
This graph shows time transportation of sales to ordinary income ratios.
From FY2015, the number of SG holdings have always exceeded YAMATO holdings.
Labor share
What is labor share？
Labor share is one of the indicators of productivity.
The lower the labor share, the more money is available for personnel expenses.
In other words, it can be said that the company is likely to raise the salary of employees.
Labor share(%)=Selling and general administrative expenses ÷Gross profit ×100
*calculated from PL.
Labor share between YAMATO Hlds. & SG Hlds.
Labor share of YAMATO holdings is 8% higher than SG holdings.
Gross profit per person
What is Gross profit per person?
Gross profit per person is one of the indicators of productivity.
The higher this value, the higher the added value of each employee.
Gross profit per person(yen)=Gross profit ÷ Number of employees
Gross profit per person between YAMATO Hlds. & SG Hlds.
Data source：
・YAMATO Holdings, Securities report submitted : Jun. 21 2019
・SG Holdings, Securities report submitted : Jun. 26 2019
