[Column] Key Points on the Income Statement for Selecting the Fiscal Month

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A year consists of 12 months, and it is a battle of 12 rounds. There are various ways to fight, but in principle, "a first-half dam-type management is preferable." First-half dam-type management means securing 60-70% of the annual required operating profit during the first half of the year, from April to September, in the case of a March fiscal year-end. From a different perspective, ideally, a year of 12 rounds would result in 12 wins and 0 losses, but the reality is often 10 wins and 2 losses, or 9 wins and 3 losses. If we consider a scenario of 9 wins and 3 losses, it is important to select the fiscal month in such a way that 5-6 of those wins occur in the first half of the year. The reason why the first half is better is that it allows for a buffer to search for products during months when a deficit is expected in the second half, and it also provides leeway for planning for the next fiscal year. Companies that rely on a second-half push often exhaust their resources before reaching the fiscal month, resulting in delayed strategies for the next period. *For detailed content of the column, please refer to the related links. For more information, feel free to contact us.

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