Japan Aviation Electronics Industry Ltd. Reports Mixed Results for Q1 2024: Increased Liquidity and Dividends, But Decline in Profit.
Japan Aviation Electronics Industry Ltd. has recently announced its financial results for the quarter ending March 2024. The company has seen a very negative performance in this quarter, with a decline in pre-tax profit and net profit. However, there are some positive aspects to the financials as well.
The company's cash and equivalents have increased to JPY 138,054 MM in the last six semi-annual periods, indicating an improvement in short-term liquidity. Additionally, the company has been distributing higher dividends from its profits, with the dividend per share reaching a high of JPY 5.35 in the last five years.
One of the major factors contributing to the decline in profit is the increase in interest costs, which have grown by 90.91% compared to the previous quarter. This signifies increased borrowings by the company. The pre-tax profit and net profit have also seen a significant decline, which could be a cause for concern in the near term.
On the positive side, the company has been able to reduce its raw material costs by -23.83% year-on-year, which could lead to an improvement in profit margins. Additionally, the company has also invested in assets, with the depreciation cost reaching a high of JPY 5,600 MM in the last five periods.
Overall, Japan Aviation Electronics Industry Ltd. has shown a mixed performance in the quarter ending March 2024. While there are some positive aspects to the financials, the decline in profit and increase in interest costs could be a cause for concern. Investors are advised to hold their stock, as recommended by Infinhub.