[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, "early half dam-type management is good." Early half dam-type management means securing 60-70% of the annual required operating profit in the first half of the year, specifically from April to September in the case of a March fiscal year-end. From a different perspective, ideally, a year with 12 rounds would be a battle of 12 wins and 0 losses, but in reality, it is more like 10 wins and 2 losses or 9 wins and 3 losses. If we assume 9 wins and 3 losses, it means selecting 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 flexibility in searching for products during months when a deficit is expected in the second half, and it also provides leeway for preparing measures 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 responses for the next period. *For more detailed content of the column, please refer to the related links. For further inquiries, feel free to contact us.

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