JII Compounders · House Style
Financial Reporting Glossary
The reporting periods, comparison labels, financial abbreviations and valuation conventions used across JII Compounder profiles. A percentage should always tell the reader what it measures and, when it is a change, what period it is compared with.
01 · Reporting periods
Dates should identify the fiscal year-end.
Japanese companies use different fiscal year-ends. JII writes the year-end month and year together so that “FY2026” cannot be mistaken for a calendar year.
| Term | Meaning | Example |
|---|---|---|
| FY3/26 | Fiscal year ended March 2026 | FY3/26 OP was ¥10.1bn. |
| FY12/25 | Fiscal year ended December 2025 | FY12/25 revenue rose 8.0% YoY. |
| 1H / 2H | First half / second half | 1H FY3/27 OP reached 49% of guidance. |
| 9M | First nine months | 9M FY7/26 OP rose 5.6% YoY. |
| 1Q–4Q | First through fourth quarter | 1Q FY9/27 revenue rose 12.0% YoY. |
| CY2026 | Calendar year 2026 | The policy takes effect in CY2026. |
| A / E | Actual / JII or consensus estimate | FY3/26A; FY3/27E. Company guidance is labelled “guidance,” not E. |
02 · Comparisons & percentages
Every change needs a comparison basis.
A bare percentage may be a margin, ownership stake, yield or rate of change. JII labels changes explicitly and uses percentage points for movements in margins and ratios.
| Term | Meaning | Example |
|---|---|---|
| YoY | Year over year | Revenue rose 9.2% YoY. |
| QoQ | Quarter over quarter | OP declined 3.0% QoQ. |
| HoH | Half over half | Orders increased 11.0% HoH. |
| CAGR | Compound annual growth rate | Revenue CAGR was 6.1% over FY3/23–FY3/26. |
| ppt | Percentage-point change | Gross margin rose 0.7ppt YoY to 20.0%. |
| bps | Basis points; 100bps equals 1ppt | Used only when the source or market convention is stated in bps. |
| % level | A margin, yield, stake or ratio—not a rate of change | OP margin was 1.55%; dividend yield was 3.7%. |
| Price return | Always names the measurement period or reference price | Shares rose 35.8% over two years; 19–47% upside from ¥1,088. |
House rule: write “OP fell 25.6% YoY,” not “OP fell 25.6%.” Write “margin rose 0.7ppt YoY to 20.0%,” not “margin rose 0.7%.”
03 · Profit & cash flow
Use the company's reported profit measure precisely.
| Term | Meaning | Usage |
|---|---|---|
| GP | Gross profit | Revenue less cost of sales. |
| OP | Operating profit | The primary Japanese operating measure. Spell out on first use, then use OP. |
| OP margin | Operating profit divided by revenue | OP margin was 1.55%. |
| EBIT | Earnings before interest and tax | Not used as a synonym for OP unless the report reconciles the two. |
| EBITDA | Earnings before interest, tax, depreciation and amortisation | Used when the company or JII states the calculation basis. |
| EPS | Earnings per share | Net profit attributable to common shareholders divided by diluted shares. |
| DPS | Dividend per share | FY3/27 DPS guidance is ¥40. |
| FCF | Free cash flow | Operating cash flow less capital expenditure, unless otherwise stated. |
| Capex | Capital expenditure | Cash investment in property, plant, equipment and related assets. |
| Net debt | Interest-bearing debt less cash | Lease liabilities are identified separately when excluded. |
04 · Valuation
The numerator and denominator must match.
| Term | Meaning | Usage |
|---|---|---|
| Market cap | Share price multiplied by diluted shares outstanding | An equity-value measure. |
| EV | Enterprise value | Market cap plus net debt and other stated adjustments. |
| P/E | Price divided by EPS | An equity-value multiple. |
| P/B | Price divided by book value per share | Labelled trailing or adjusted where relevant. |
| EV/OP | Enterprise value divided by operating profit | Use when the denominator is reported or guided OP. |
| EV/EBIT | Enterprise value divided by EBIT | Use only when EBIT is calculated or disclosed and differs from OP. |
| EV/EBITDA | Enterprise value divided by EBITDA | State whether the denominator is trailing, guidance or an estimate. |
| LTM / NTM | Last twelve months / next twelve months | The measurement window must accompany the multiple. |
| A / E / guidance | Actual / estimate / company guidance | 13.8x FY3/27-guidance EV/OP. |
House rule: write “the shares trade at 13.8x FY3/27-guidance EV/OP,” not “the shares trade at 13.8x operating profit” or “enterprise value is 13.8x EV/OP.” EV/OP already identifies enterprise value as the numerator.
05 · Returns & capital
Return measures are not interchangeable.
| Term | Meaning | Usage |
|---|---|---|
| ROE | Return on equity | Profit relative to shareholders' equity. |
| ROIC | Return on invested capital | After-tax operating return relative to invested capital; methodology must be stated. |
| ROCE | Return on capital employed | JII generally uses OP divided by average capital employed. |
| WACC | Weighted-average cost of capital | Compared with ROIC only when both use compatible definitions. |
| FCF yield | FCF divided by market cap | Labelled trailing or estimated. |
| Payout ratio | Dividends divided by net profit | A percentage level, not a YoY change. |
| Total payout | Dividends plus buybacks relative to net profit | The period and treatment of treasury shares are stated. |