Earnings quality
Compare earnings and operating cash flow for earnings quality.
NEC Corporation
Ticker 6701 · 🇯🇵 Japan · Consolidated IFRS · amounts in yen
Filed 2026-06-18 · 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 49.2%.
Mixed signals — use cash flow and the balance sheet before treating the year as clean.
ActionDig deeper
OP margin—
Equity ratio49.2%
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
日本電気株式会社 is a Japanese listed company. Its reportable segments include Operating Segments Not Included In, ITServices, Social Infrastructure, Disclosure Of Changes In.
- Operating Segments Not Included In
- ITServices
- Social Infrastructure
- Disclosure Of Changes In
Segments Operating Segments Not Included In · ITServices · Social Infrastructure · Disclosure Of Changes In
Compare trends
No phone/email found in this filing · Filing date 2026-06-18
Financial statements
Income statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Revenue | — | — |
| Cost of sales* | — | — |
| Gross profit | ¥1.1T | ¥1.2T |
| Operating profit (loss) | ¥256.5B | ¥359.9B |
| Finance income | ¥10.0B | ¥52.9B |
| Finance costs | ¥16.6B | ¥18.2B |
| Income tax expense | ¥55.1B | ¥124.9B |
| Profit (loss) | ¥184.7B | ¥273.3B |
| Profit (loss) attributable to owners | ¥175.2B | ¥270.2B |
| Basic EPS (¥) | 131.50 | 202.95 |
Balance sheet
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash and cash equivalents | ¥584.6B | ¥659.0B |
| Current assets | ¥2.2T | ¥2.5T |
| Non-current assets | ¥2.1T | ¥2.0T |
| Total assets | ¥4.3T | ¥4.5T |
| Short-term borrowings | — | — |
| Current liabilities | ¥1.6T | ¥1.6T |
| Non-current liabilities* | ¥610.4B | ¥620.9B |
| Total liabilities | ¥2.2T | ¥2.2T |
| Equity attributable to owners | ¥2.0T | ¥2.2T |
| Total equity | ¥2.1T | ¥2.3T |
Cash flow statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash flows from operating activities | ¥344.4B | ¥438.5B |
| Cash flows from investing activities | -¥131.2B | ¥33.7B |
| Cash flows from financing activities | -¥104.0B | -¥417.9B |
| Net increase (decrease) in cash | ¥108.1B | ¥74.4B |
| Cash at end of period | ¥584.6B | ¥659.0B |
Five-year trends
Key metrics
| Metric | Trend | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue | ¥3.0T | ¥3.3T | ¥3.5T | ¥3.4T | ¥3.6T | |
| Operating profit | — | — | — | ¥256.5B | ¥359.9B | |
| Profit to owners | ¥141.3B | ¥114.5B | ¥149.5B | ¥175.2B | ¥270.2B | |
| Total assets | ¥3.8T | ¥4.0T | ¥4.2T | ¥4.3T | ¥4.5T | |
| Cash & equivalents | ¥430.8B | ¥419.5B | ¥476.5B | ¥584.6B | ¥659.0B | |
| Owners’ equity | ¥1.5T | ¥1.6T | ¥1.9T | ¥2.0T | ¥2.2T |
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 ¥1.1T to ¥1.2T, while operating profit swung from ¥256.5B to ¥359.9B — the damage is concentrated below gross profit.
Cash tells a different story than earnings. Operating cash flow was still ¥438.5B (prior ¥344.4B), and cash on the balance sheet rose to ¥659.0B from ¥584.6B. 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 ¥2.2T. ROE moved from 9.1% to 13.0%, and the equity ratio from 45.2% to 49.2%. Employee count is 101,800 vs 104,194 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 S100YBFV
(日本電気株式会社), period end 2026-03-31.