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Defining Data: Dashboard on Business Conditions of Water Utilities

Contents

General

The values shown in this dashboard are calculated from the " Local Public Enterprise Settlement Status Survey (Ministry of Internal Affairs and Communications) " and the " Water and Sewage Facilities (Ministry of Land, Infrastructure, Transport and Tourism) ".

In addition, although the small-scale water supply business operators handled in this dashboard are business operators subject to the Act, please note that the "Results of Urgent Inspection on the Earthquake-Resistant Status of Water and Sewage Facilities (Ministry of Land, Infrastructure, Transport and Tourism) " are numerical values for all small-scale water supply business operators, and the scope of business operators handled is different.

Definitions of some terms are given with reference to the "Water Terminology Dictionary (2nd Edition)" published by the Japan Water Works Association.

Definitions

Water pipe

  • A facility that directs water that has passed through a water intake facility to a water purification plant

Water pipe

  • A facility that transports purified water from a treatment plant to a distribution pond

Water purification plant

  • A facility that treats raw water sent from a water source to make it fit for drinking

Intake facility

  • Facility for receiving raw water

1. Basic Information

1.1 Information on Water Utilities

1.1.1 Number of Water Utilities

  • This is a total of the business operators in the Survey on the Status of Settlement of Local Public Enterprises (Ministry of Internal Affairs and Communications).

1.1.2 Water Supply Population

  • The population living in the water supply area and receiving water supply from the water supply.
  • Reference is made to the current water supply population (people) in "01 & nbsp; Survey on Facilities and Business Conditions" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

1.1.3 Water Supply Area

  • Reference is made to the area of water supply areas in the "Survey on 30 Facilities and Business Conditions (Annex)" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

1.1.4 Water yield

  • Amount of water subject to fee collection and amount of water received from other accounts, etc.
  • Reference is made to the amount of water with revenues in the "Survey on 30 Facilities and General Business Conditions (Annex)" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

1.1.5 Pipeline Extension

  • Total of water pipe extension, water supply pipe extension, and water distribution pipe extension in "01 & nbsp; Survey on Facilities and Business Conditions" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications)

1.1.6 Number of water purification plants

  • A facility that has the necessary equipment for water purification (purification of water to obtain the quality of tap water).
  • Reference is made to the number of water purification plants in "01 & nbsp; Survey on Facilities and Business Conditions" in the Survey on the Financial Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

1.1.7 Number of distribution ponds

  • A pond for temporary storage of purified water for proper distribution according to the demand of the water supply area.
  • Reference is made to the number of water distribution reservoirs in "01 & nbsp; Survey on Facilities and Business Conditions" in the Survey on the Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

1.1.8 Number of staff

  • Reference is made to the number of employees in "01 & nbsp; Survey on Facilities and Business Conditions" of the Survey on Financial Results of Local Public Enterprises (Ministry of Internal Affairs and Communications).

2. Financial Position

2.1 Income and Expenses

2.1.1 Current Account Ratio

The current account ratio used for enterprises to which the Law applies is an indicator of the extent to which costs such as maintenance and management costs and interest expenses are covered by revenues such as revenues from water supply and money transferred from the general account in the relevant fiscal year. The indicator must be equal to or higher than 100%, which indicates a surplus balance in a single fiscal year. If the figure is less than 100%, it indicates a deficit balance in a single fiscal year. Therefore, efforts must be made to improve management.

  • Management income / expenditure ratio = ((Operating income + Non-operating income) / (Operating expenses + Non-operating expenses)) × 100
  • Calculated from figures in "20 Income Statement" of the Survey of Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

2.1.2 Charge Recovery Rate

This is an indicator showing the extent to which the cost of water supply is covered by the revenue from water supply. It is possible to evaluate the rate level, etc. This indicator shows the relationship between the unit price of water supply and the cost of water supply. If the rate recovery rate is below 100%, it means that the cost of water supply is covered by the revenue other than the revenue from water supply. If the figure is low and the shortfall in revenue is covered by the disbursement other than those specified in the disbursement standard, the entity is required to secure an appropriate revenue from water supply.

  • Charge recovery rate = (unit price of supply / cost of water supply) x 100
  • Calculated from figures in "20 Income and Loss Statement" and "30 Survey on Facilities and Business Conditions (Annex)" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

2.1.3 Unit price of supply

This is an indicator of how much profit is earned per cubic meter of water yield. (See Water Terminology Dictionary.)

  • Unit supply price = Water supply revenue / Total annual water yield
  • Figures calculated from "20 Statement of Income and Loss" and "30 Survey on Facilities and Business Conditions (Annex)" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

2.1.4 Cost of water supply

This is an indicator of the cost per cubic meter of water yield.

  • Cost of water supply = (Ordinary expenses - (Contract construction expenses + Cost of sales of materials and disused goods + Incidental business expenses - Reversal of long-term advances received)) / Water yield
  • Calculated from the figures in "21 Cost Composition Table" and "30 Survey on Facilities and Business Conditions (Table)" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

2.1.5 Cost of receiving water

Expenses required for receiving raw water, tap water, etc. supplied from other local governments, etc.

  • Water Receiving Cost = (Water Receiving Cost / Total Cost) x 100
  • Calculated from "21 Cost Composition Table" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

2.1.6 Chemical costs

Cost of chemicals required for treatment of raw water (water before treatment) and sterilization of purified water.

  • Drug Cost = (Drug Cost / Total Cost) x 100
  • Calculated from "21 Cost Composition Table" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

2.1.7 Depreciation and amortization

The amount of depreciation of fixed assets charged to expense in a specified year by an accounting treatment or procedure that reasonably and systematically imposes the depreciation of fixed assets as an expense in each year of its utilization.

  • Depreciation = (Depreciation / Total expenses) x 100
  • Calculated from "21 Cost Composition Table" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

2.1.8 Repair Expenses

Expenses required for maintenance and repair of property, plant and equipment, inventories, etc.

  • Repair expenses = (Repair expenses / Total expenses) x 100
  • Calculated from "21 Cost Composition Table" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

2.1.9 Personnel costs

All expenses paid to Employees, etc. as consideration or remuneration for their work. (See Small Dictionary of Local Finance)

  • Labor Cost = (Labor Cost / Total Cost) x 100
  • Calculated from "21 Cost Composition Table" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

2.1.10 Interest expense

Interest expense on corporate bonds, temporary borrowings, lease obligations, etc., equivalent to interest recorded under the amortized cost method.

  • Interest Expense = (Interest Expense / Total Expenses) x 100
  • Calculated from "21 Cost Composition Table" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

2.1.11 Power Costs

Electricity and fuel costs required for the operation of machinery and equipment

  • Power Cost = (Power Cost / Total Cost) x 100
  • Calculated from "21 Cost Composition Table" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

2.1.12 Commission expenses

Expenses paid as a counter-benefit in the case where a local public entity does not directly implement the affairs, projects, etc., under its authority, but entrusts them to another organization or a specific person for implementation. (See Small Dictionary of Local Public Finance)

  • Commission expenses = (Commission expenses / Total expenses) x 100
  • Calculated from "21 Cost Composition Table" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

2.2 Assets and Liabilities

2.2.1 Current ratio

This is an indicator of the ability to pay short-term debts. This indicator needs to be at least 100%, which indicates that there is cash, etc., that can be paid for debts due within one year. In general, below 100% means that assets that can be cashed within one year do not cover debts due within one year. Therefore, it is necessary to improve management to increase the ability to pay.

  • Current ratio = (Current assets / Current liabilities) × 100

2.2.2 Accumulated deficit ratio

This is an indicator that shows the status of accumulated loss on operating revenue (loss arising from operating activities that cannot be covered by retained earnings brought forward from the previous fiscal year, etc., and accumulated over multiple fiscal years). This indicator is required to be 0%, which indicates that no accumulated loss has occurred. If a company has accumulated loss, it can be said that there is a problem with the soundness of management. It is necessary to improve management to achieve 0%, taking into account the situation over time.

  • Accumulated deficit ratio = (Unappropriated deficit for the current year / (Operating revenue - Revenue from construction contracts)) × 100
  • Calculated from "20 Income Statements" and "22 Balance Sheets" of the Local Public Enterprise Settlement Survey (Ministry of Internal Affairs and Communications).

2.2.3 Ratio of outstanding corporate bonds to water supply revenue

Ratio of outstanding corporate bonds to revenue from water supply. This is an indicator of the size of outstanding corporate bonds.

  • Ratio of outstanding corporate bonds to return on water supply = (total outstanding corporate bonds / return on water supply) × 100
  • Calculated from "22 Balance Sheets" of the Local Public Enterprise Settlement Survey (Ministry of Internal Affairs and Communications).

2.2.4 Capital structure ratio

An important aspect of the long-term stability of the financial position is the capital structure of the project. The capital structure ratio is the ratio of capital to total capital (liabilities and capital). The capital structure ratio tends to be low in the water supply project because most of the construction cost of the facility is financed by corporate bonds. However, capital must be created in order to stabilize the business management. In addition, capital is capital that, unlike liabilities, does not need to be repaid in principle and does not incur interest expenses. Therefore, investment in construction with capital is more effective in reducing capital expenses.

  • Capital structure ratio = ((Capital stock + Surplus + Valuation difference + Deferred income) / Total liabilities and equity) × 100
  • Calculated from "22 Balance Sheets" of the Local Public Enterprise Settlement Survey (Ministry of Internal Affairs and Communications).

3. Status of Facilities

3.1 Obsolescence

3.1.1 Pipe Aging Rate

This is an indicator that shows the ratio of the extension of pipelines that have exceeded the statutory useful life. It indicates the degree of deterioration of pipelines. In general, if the value is high, there are many pipelines that have passed the statutory useful life, and it is possible to estimate the need for renewal of pipelines.

  • Pipe aging rate = (Of pipe extensions, pipe extensions that have passed the statutory useful life (water conveyance pipe + water conveyance pipe + water distribution pipe) / pipe extensions (water conveyance pipe + water conveyance pipe + water distribution pipe)) × 100
  • Calculated from "01 & nbsp; Survey on Facilities and Business Conditions" of the Survey on the Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

3.1.2 Pipeline Renewal Rate

It is an index that shows the ratio of pipeline extension renewed in the fiscal year, and it can grasp the pace and situation of pipeline renewal.

  • Pipeline renewal rate = (pipeline extension renewed in the fiscal year (water pipe + water pipe + water distribution pipe) / pipeline extension (water pipe + water pipe + water distribution pipe)) × 100)
  • Calculated from "01 & nbsp; Survey on Facilities and Business Conditions" of the Survey on the Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

3.1.3 Depreciation of property, plant and equipment

This is an indicator that shows the degree of progress in depreciation of depreciable assets among tangible fixed assets. It indicates the degree of deterioration of assets. In general, the higher the value, the more assets are close to the statutory useful life, and it is possible to estimate the need for facility renewal in the future.

  • Depreciation rate of tangible fixed assets = (Accumulated depreciation of tangible fixed assets / Book cost of depreciable assets among tangible fixed assets) × 100)
  • Calculated from "22 Balance Sheets" of the Local Public Enterprise Settlement Survey (Ministry of Internal Affairs and Communications).

3.2 Earthquake-proofing

3.2.1 Seismic Adequacy of Water Intake Facilities

  • Capacity of all water intake facilities subject to earthquake-resistant measures (m3 / day) ÷ Capacity of all water intake facilities subject to earthquake-resistant measures (m3 / day)
  • This is based on the results of an emergency inspection of the earthquake-resistant status of water and sewage facilities (Ministry of Land, Infrastructure, Transport and Tourism).

3.2.2 Earthquake-resistant rate of water purification plants

  • Capacity of water purification plants equipped with earthquake-resistant measures among all targeted water purification plants (m3 / day) ÷ Capacity of all targeted water purification plants (m3 / day)
  • This is based on the results of an emergency inspection of the earthquake-resistant status of water and sewage facilities (Ministry of Land, Infrastructure, Transport and Tourism).

3.2.3 Earthquake-resistant rate of distribution ponds

  • Effective capacity of earthquake-resistant reservoirs among all targeted reservoirs (m3) / Effective capacity of all targeted reservoirs (m3)
  • This is based on the results of an emergency inspection of the earthquake-resistant status of water and sewage facilities (Ministry of Land, Infrastructure, Transport and Tourism).

3.2.4 Seismic Compliance of Water Pipes

  • Earthquake-resistant extension of all applicable pipes (km) ÷ Extension of all applicable pipes (km)
    *The earthquake-resistant compliance rate is the percentage of "earthquake-resistant pipes" among the main pipes (water pipes, water supply pipes, water distribution main pipes).
    "*" "Earthquake-resistant pipes" "refers to earthquake-resistant pipes (pipes with a structure in which joints do not separate even in the event of an earthquake) and pipes that are not earthquake-resistant but can be evaluated as earthquake-resistant in consideration of the properties of the ground on which the pipes are laid."
  • This is based on the results of an emergency inspection of the earthquake-resistant status of water and sewage facilities (Ministry of Land, Infrastructure, Transport and Tourism).

3.3 Business Efficiency

3.3.1 Yield

This is an indicator to determine whether the operation of the facility leads to profits. The closer the indicator is to 100%, the more it can be said that the operation status of the facility is reflected in profits. If the value is low, the amount of water supplied through the water supply facility or water supply equipment does not lead to profits. Therefore, it is necessary to identify the cause such as water leakage or meter insensitivity and take measures against it.

  • Yield ratio = (total annual water yield / total annual water distribution) × 100
  • Calculated from "01 & nbsp; Survey on Facilities and Business Conditions" of the Survey on the Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

3.3.2 Facility Utilization Rate

The ratio of the average daily distribution volume to the daily distribution capacity. It is an index to judge the utilization and appropriate size of a facility.

  • Facility utilization rate = (average daily water supply / daily water supply capacity) × 100
  • Calculated from "01 & nbsp; Survey on Facilities and Business Conditions" of the Survey on the Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

4. Annual Changes in Household Water Charges

4.1 Household Rates

The rates shown in this dashboard are calculated by discounting the consumption tax for household rates per 20 cubic meters per month (13 mm and 20 mm diameters).

  • Calculated based on "01 & nbsp; Survey on Facilities and Business Conditions" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

4.2 Amount of change

  • The home rate for the end year selected on the dashboard minus the home rate for the start year.
  • Amount of change = household rate (fiscal year when setting ends) - household rate (fiscal year when setting starts)
  • Calculated based on "01 & nbsp; Survey on Facilities and Business Conditions" of the Survey on Settlement Status of Local Public Enterprises (Ministry of Internal Affairs and Communications).

4.3 Volatility

  • Calculated from the household rates for the end and start years selected on the dashboard.
  • Fluctuation rate = (household rate (setting end year) - household rate (setting start year)) / household rate (setting start year)
  • Calculated from "01 & nbsp; Survey on Facilities and Business Conditions" of the Survey on Financial Conditions of Local Public Enterprises (Ministry of Internal Affairs and Communications)

5. Comparison page of similar organizations

5.1 CLASSIFICATION OF GROUPS