Earnings quality
Compare earnings and operating cash flow for earnings quality.
Sumitomo Chemical Company, Limited
Ticker 4005 · 🇯🇵 Japan · Consolidated IFRS · amounts in yen
Filed 2026-06-22 · Period end 2026-03-31
Takeaway
Dig deeperThe numbers send mixed signals — dig into cash flow and leverage before drawing a conclusion.
equity ratio is 29.6%.
Mixed signals — use cash flow and the balance sheet before treating the year as clean.
ActionDig deeper
OP margin—
Equity ratio29.6%
Last price—
Trailing P/E—
Look at next
- Compare operating cash flow to reported profit across the last two years.
- Open English IR for management commentary on outlook and capital allocation.
- Overlay peers on Compare before judging relative momentum.
About the company
住友化学株式会社 is a Japanese listed company. Its reportable segments include Advanced Medical Solutions, Agro And Life Solutions, Essential And Green Materials, ICTAnd Mobility Solutions.
- Advanced Medical Solutions
- Agro And Life Solutions
- Essential And Green Materials
- ICTAnd Mobility Solutions
- Sumitomo Pharma
- Operating Segments Not Included In
Segments Advanced Medical Solutions · Agro And Life Solutions · Essential And Green Materials · ICTAnd Mobility Solutions · Sumitomo Pharma · Operating Segments Not Included In
Compare trends
No phone/email found in this filing · Filing date 2026-06-22
Financial statements
Income statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Revenue | — | — |
| Cost of sales* | — | — |
| Gross profit | ¥725.5B | ¥668.3B |
| Operating profit (loss) | ¥193.0B | ¥151.7B |
| Finance income | ¥17.6B | ¥28.1B |
| Finance costs | ¥152.6B | ¥63.8B |
| Income tax expense | ¥15.4B | ¥666.0M |
| Profit (loss) | ¥42.7B | ¥115.4B |
| Profit (loss) attributable to owners | ¥38.6B | ¥60.9B |
| Basic EPS (¥) | 23.59 | 37.16 |
Balance sheet
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash and cash equivalents | ¥209.8B | ¥208.6B |
| Current assets | ¥1.6T | ¥1.5T |
| Non-current assets | ¥1.9T | ¥1.9T |
| Total assets | ¥3.4T | ¥3.4T |
| Short-term borrowings | — | — |
| Current liabilities | ¥1.0T | ¥1.0T |
| Non-current liabilities* | ¥1.3T | ¥1.2T |
| Total liabilities | ¥2.4T | ¥2.2T |
| Equity attributable to owners | ¥900.8B | ¥1.0T |
| Total equity | ¥1.1T | ¥1.2T |
Cash flow statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash flows from operating activities | ¥233.0B | ¥234.8B |
| Cash flows from investing activities | ¥85.2B | -¥74.8B |
| Cash flows from financing activities | -¥300.8B | -¥199.1B |
| Net increase (decrease) in cash | ¥10.7B | -¥23.5B |
| Cash at end of period | ¥209.8B | ¥208.6B |
Five-year trends
Key metrics
| Metric | Trend | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue | ¥2.8T | ¥2.9T | ¥2.4T | ¥2.6T | ¥2.3T | |
| Operating profit | — | — | — | ¥193.0B | ¥151.7B | |
| Profit to owners | ¥162.1B | ¥7.0B | -¥311.8B | ¥38.6B | ¥60.9B | |
| Total assets | ¥4.3T | ¥4.2T | ¥3.9T | ¥3.4T | ¥3.4T | |
| Cash & equivalents | ¥365.4B | ¥305.8B | ¥217.4B | ¥209.8B | ¥208.6B | |
| Owners’ equity | ¥1.2T | ¥1.2T | ¥965.8B | ¥900.8B | ¥1.0T |
How we read these numbers
From the notes
No material one-offs extracted from this filing.
Mixed
The numbers send mixed signals — dig into cash flow and leverage before drawing a conclusion.
On the income statement, revenue moved from — to — (—), so the top line did not break. Gross profit only slipped from ¥725.5B to ¥668.3B, while operating profit swung from ¥193.0B to ¥151.7B — the damage is concentrated below gross profit.
Cash tells a different story than earnings. Operating cash flow was still ¥234.8B (prior ¥233.0B), and cash on the balance sheet rose to ¥208.6B from ¥209.8B. When profits collapse but operating cash stays positive, read the notes for impairments and other non-cash charges before assuming the business stopped generating cash.
The balance sheet got heavier on leverage. Total liabilities rose to ¥2.2T while owners’ equity fell to ¥1.0T. ROE moved from 4.1% to 6.4%, and the equity ratio from 26.2% to 29.6%. Employee count is 27,491 vs 29,279 a year earlier.
Liquidity & leverage
Short-term borrowing levels look more stable year over year.
Capital buffer
Capital structure held relatively steady.
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Source: EDINET S100YAUO
(住友化学株式会社), period end 2026-03-31.