Japanese equipment manufacturer Kubota logged a decline in finance margin in 2023 as surging financing costs and stalling financing income pressured the company’s credit operations.
Finance margin landed at 71.9% in 2023, down from 89.4% in 2022, according to an Equipment Finance News analysis of the company’s earnings released Feb. 14.
Financing costs for the year came in at 5.3 trillion yen ($34.9 million), an increase of 162.4% year over year. Finance income, meanwhile, ticked down 0.25% YoY to $124.5 million, according to today’s earnings report.
Current finance receivables came in at $3.7 billion, an increase of 12.5% YoY, according to the earnings report.
Shares of Kubota were trading at $73.75 as of market close today, down 3.34% from market open. Kubota has a market capitalization of $17.1 billion.
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