Are you over-investing in equipment?! Here’s the basic knowledge on how to check from the perspective of company safety!

松井製作所

When you think about introducing new equipment, what criteria should you use to make a judgment? While it is important to assess profitability through break-even analysis for each product, it is also crucial to consider safety and evaluate it alongside the company's financial situation. When discussing a company's financial situation, the "balance sheet" (also known as the balance sheet or BS) is often mentioned. For those not in specialized departments like accounting, it may not be very familiar, and some may even shy away from it. In this document, I will first explain the structure of the balance sheet, then describe the characteristics of a manufacturing company's balance sheet, and finally explain the criteria of "fixed ratio" and "fixed long-term compatibility ratio" as benchmarks for introducing new equipment. I have often omitted detailed content and exceptions to keep the explanation as simple as possible, but I hope this helps you grasp the overall concept.