Earnings quality
Compare earnings and operating cash flow for earnings quality.
Murata Manufacturing Co., Ltd.
Ticker 6981 · 🇯🇵 Japan · Consolidated IFRS · amounts in yen
Filed 2026-06-24 · 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 85.0%.
Mixed signals — use cash flow and the balance sheet before treating the year as clean.
ActionDig deeper
OP margin—
Equity ratio85.0%
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
株式会社村田製作所 is a Japanese listed company whose core business is the manufacture and sale of electronic components, based on its annual securities report business description.
- electronic components
Segments Devices And Modules · Other · Components
Financial statements
Income statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Revenue | — | — |
| Cost of sales* | — | — |
| Gross profit | ¥717.7B | ¥774.8B |
| Operating profit (loss) | ¥279.7B | ¥281.8B |
| Finance income | ¥29.4B | ¥30.0B |
| Finance costs | ¥4.8B | ¥3.2B |
| Income tax expense | ¥71.4B | ¥74.9B |
| Profit (loss) | ¥233.0B | ¥233.8B |
| Profit (loss) attributable to owners | ¥233.8B | ¥233.9B |
| Basic EPS (¥) | 125.08 | 127.66 |
Balance sheet
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash and cash equivalents | ¥625.1B | ¥653.7B |
| Current assets | ¥1.5T | ¥1.6T |
| Non-current assets | ¥1.5T | ¥1.6T |
| Total assets | ¥3.0T | ¥3.2T |
| Short-term borrowings | ¥781.0M | ¥1.7B |
| Current liabilities | ¥276.5B | ¥316.5B |
| Non-current liabilities* | ¥171.7B | ¥164.8B |
| Total liabilities | ¥448.2B | ¥481.3B |
| Equity attributable to owners | ¥2.6T | ¥2.7T |
| Total equity | ¥2.6T | ¥2.7T |
Cash flow statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash flows from operating activities | ¥451.9B | ¥425.2B |
| Cash flows from investing activities | -¥208.1B | -¥193.8B |
| Cash flows from financing activities | -¥242.7B | -¥221.8B |
| Net increase (decrease) in cash | ¥3.1B | ¥28.6B |
| Cash at end of period | ¥625.1B | ¥653.7B |
Five-year trends
Key metrics
| Metric | Trend | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue | — | ¥1.7T | ¥1.6T | ¥1.7T | ¥1.8T | |
| Operating profit | — | — | — | ¥279.7B | ¥281.8B | |
| Profit to owners | — | ¥243.9B | ¥180.8B | ¥233.8B | ¥233.9B | |
| Total assets | ¥2.8T | ¥2.9T | ¥3.0T | ¥3.0T | ¥3.2T | |
| Cash & equivalents | ¥512.1B | ¥469.4B | ¥622.0B | ¥625.1B | ¥653.7B | |
| Owners’ equity | ¥2.2T | ¥2.4T | ¥2.6T | ¥2.6T | ¥2.7T |
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 ¥717.7B to ¥774.8B, while operating profit swung from ¥279.7B to ¥281.8B — the damage is concentrated below gross profit.
Cash tells a different story than earnings. Operating cash flow was still ¥425.2B (prior ¥451.9B), and cash on the balance sheet rose to ¥653.7B from ¥625.1B. 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.
Goodwill on the balance sheet fell from ¥135.7B to ¥99.5B, consistent with heavy write-downs of past acquisitions’ carrying values.
The balance sheet got heavier on leverage. Total liabilities rose to ¥481.3B while owners’ equity fell to ¥2.7T. ROE moved from 9.1% to 8.8%, and the equity ratio from 85.2% to 85.0%. Employee count is 74,302 vs 72,572 a year earlier.
Liquidity & leverage
Short-term borrowings jumped from ¥781.0M to ¥1.7B; watch refinancing and working-capital pressure even with a larger cash balance.
Capital buffer
Owners’ equity ratio fell from 85.2% to 85.0%; the balance sheet absorbed a heavy loss year.
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Source: EDINET S100YHPY
(株式会社村田製作所), period end 2026-03-31.