We Think That There Are Issues Underlying Zenitaka's (TSE:1811) Earnings

Zenitaka Corporation's earnings report didn't impact its stock due to concerns over its accrual ratio, which indicates free cash flow is significantly lower than statutory profit. The company reported a profit of JP¥4.10b but burned through JP¥32b in cash. Unusual items reduced profit by JP¥850m, suggesting potential for higher future profits if these expenses don't recur. Investors are advised to consider balance sheet strength and warning signs before investing.