Earnings quality
Compare earnings and operating cash flow for earnings quality.
Kao Corporation
Ticker 4452 · 🇯🇵 Japan · Consolidated IFRS · amounts in yen
Filed 2026-03-25 · Period end 2025-12-31
Takeaway
Worth trackingSales and operating profit both moved in a healthier direction.
operating margin is 9.7%; equity ratio is 56.7%.
Sales and operating profit moved together — keep watching margins and whether the trend persists next period.
ActionWorth tracking
OP margin9.7%
Equity ratio56.7%
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
花王株式会社 is a Japanese listed company. Its reportable segments include Business Connected Business, Chemical Business, Cosmetics Business, Global Consumer Care Business.
- Business Connected Business
- Chemical Business
- Cosmetics Business
- Global Consumer Care Business
- Health Beauty Care Business
- Hygiene Living Care Business
- Other
- Disclosure Of Changes In
Segments Business Connected Business · Chemical Business · Cosmetics Business · Global Consumer Care Business · Health Beauty Care Business · Hygiene Living Care Business
Compare trends
Tel 03-3660-7111 · As of filing date 2026-03-25
Financial statements
Income statement
| Account | FY2024 (ended Dec 31, 2024) | FY2025 (ended Dec 31, 2025) |
|---|---|---|
| Revenue | ¥1.6T | ¥1.7T |
| Cost of sales* | ¥990.0B | ¥1.0T |
| Gross profit | ¥638.4B | ¥668.2B |
| Operating profit (loss) | ¥146.6B | ¥164.1B |
| Finance income | ¥5.0B | ¥6.2B |
| Finance costs | ¥4.1B | ¥3.8B |
| Income tax expense | ¥40.6B | ¥49.3B |
| Profit (loss) | ¥110.4B | ¥120.6B |
| Profit (loss) attributable to owners | ¥107.8B | ¥120.1B |
| Basic EPS (¥) | 231.94 | 260.30 |
Balance sheet
| Account | FY2024 (ended Dec 31, 2024) | FY2025 (ended Dec 31, 2025) |
|---|---|---|
| Cash and cash equivalents | ¥357.7B | ¥323.3B |
| Current assets | ¥914.0B | ¥905.9B |
| Non-current assets | ¥953.2B | ¥969.2B |
| Total assets | ¥1.9T | ¥1.9T |
| Short-term borrowings | — | — |
| Current liabilities | ¥509.6B | ¥518.2B |
| Non-current liabilities* | ¥258.8B | ¥262.2B |
| Total liabilities | ¥768.4B | ¥780.4B |
| Equity attributable to owners | ¥1.1T | ¥1.1T |
| Total equity | ¥1.1T | ¥1.1T |
Cash flow statement
| Account | FY2024 (ended Dec 31, 2024) | FY2025 (ended Dec 31, 2025) |
|---|---|---|
| Cash flows from operating activities | ¥201.6B | ¥199.7B |
| Cash flows from investing activities | -¥45.9B | -¥69.8B |
| Cash flows from financing activities | -¥104.6B | -¥175.1B |
| Net increase (decrease) in cash | — | — |
| Cash at end of period | ¥357.7B | ¥323.3B |
Five-year trends
Key metrics
| Metric | Trend | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|
| Revenue | ¥1.4T | ¥1.6T | ¥1.5T | ¥1.6T | ¥1.7T | |
| Operating profit | — | — | — | ¥146.6B | ¥164.1B | |
| Profit to owners | ¥109.6B | ¥86.0B | ¥43.9B | ¥107.8B | ¥120.1B | |
| Total assets | ¥1.7T | ¥1.7T | ¥1.8T | ¥1.9T | ¥1.9T | |
| Cash & equivalents | ¥336.1B | ¥268.2B | ¥291.7B | ¥357.7B | ¥323.3B | |
| Owners’ equity | ¥965.1B | ¥972.1B | ¥983.7B | ¥1.1T | ¥1.1T |
How we read these numbers
From the notes
No material one-offs extracted from this filing.
Constructive
Sales and operating profit both moved in a healthier direction.
On the income statement, revenue moved from ¥1.6T to ¥1.7T (▲ +3.7%), so the top line did not break. Gross profit only slipped from ¥638.4B to ¥668.2B, while operating profit swung from ¥146.6B to ¥164.1B — the damage is concentrated below gross profit.
Cash tells a different story than earnings. Operating cash flow was still ¥199.7B (prior ¥201.6B), and cash on the balance sheet rose to ¥323.3B from ¥357.7B. 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 ¥780.4B while owners’ equity fell to ¥1.1T. ROE moved from 10.5% to 11.3%, and the equity ratio from 57.1% to 56.7%. Employee count is 31,514 vs 32,566 a year earlier.
Liquidity & leverage
Short-term borrowing levels look more stable year over year.
Capital buffer
Owners’ equity ratio fell from 57.1% to 56.7%; the balance sheet absorbed a heavy loss year.
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Source: EDINET S100XT6G
(花王株式会社), period end 2025-12-31.