Deterioration in Operating Cash Flow Due to Increases in Trade Receivables and Contract Assets
First written in FY2024. 5 of 10 entries say "Mitigated", first in FY2025-Q1. Latest entry: FY2027-H1.
The whole theme swung hardest in 2022: 9 of 33 companies on the "Worse" side.
0 other companies' latest entry also says "Materialised".
- FY2027-H1MaterialisedAnnual report
「Cash used in operating activities was ¥473.365 million, compared with cash provided of ¥1,195.176 million in the same interim period of the previous year. This was mainly because, while there were interim net income before income taxes of ¥423.026 million, an impairment loss on investment securities of ¥499.999 million, an increase in advances received on construction contracts in progress of ¥116.944 million, and an increase in the provision for bonuses of ¥116.844 million, there were also decreases in cash resulting from an increase in trade receivables of ¥641.878 million, a decrease in accounts payable of ¥324.498 million, a gain on the sale of investment securities of ¥313.899 million, income taxes paid of ¥164.264 million, and an increase in costs of construction work in progress of ¥108.921 million, among other factors.」
Trade receivables increased by ¥641.878 million, and cash flow from operating activities shifted from cash provided of ¥1,195.176 million in the same period of the previous year to cash used of ¥473.365 million. The risk of cash outflows from an increase in trade receivables materialised as an actual deterioration in operating cash flow. - FY2026-H1MitigatedAnnual report
「Funds generated from operating activities amounted to ¥1,195.176 million, compared with ¥199.472 million used in the same interim period of the previous year. This was mainly attributable to a decrease in funds of ¥338.733 million from payments of corporate income taxes and other taxes, while funds increased as a result of a ¥1,384.960 million decrease in trade receivables and interim net income before income taxes of ¥335.893 million, among other factors.」
Trade receivables decreased by ¥1,384.960 million, resulting in ¥1,195.176 million of cash generated from operating activities. Operating cash flow improved from the ¥199.472 million used in the interim period of the previous year. - FY2025MitigatedAnnual report
「Funds used in operating activities during the consolidated fiscal year amounted to ¥607.470 million, compared with ¥1,422.340 million used in the previous year.」
Operating cash flow was still an outflow of ¥607.470 million, but the deficit narrowed from the ¥1,422.340 million outflow in the previous year. Trade receivables increased by ¥489.168 million. - FY2025-H1MaterialisedAnnual report
「Cash used in operating activities was ¥199.472 million, compared with ¥450.953 million used in the same interim period of the previous year. This was mainly due to cash outflows including a ¥332.884 million decrease in trade payables and ¥116.997 million in income taxes paid.」
Cash flow from operating activities was an outflow of ¥199.472 million, and operating cash flow remains negative. However, the outflow was down from ¥450.953 million in the same interim period of the previous year. - FY2025-Q1MitigatedAnnual report
「This was mainly attributable to a ¥726.616 million increase in cash and deposits and a ¥394.110 million decrease in notes receivable, accrued revenue from completed construction contracts and contract assets, among other items.」
Notes receivable, accrued revenue from completed construction contracts and contract assets decreased by ¥394.110 million, while cash and deposits increased by ¥726.616 million. The cash outflow factor from the increase in trade receivables reported in the previous fiscal year moved in the opposite direction on the balance sheet for the current quarter. - FY2024First statedAnnual report
「This resulted from cash inflows mainly from profit before income taxes of ¥407.558 million, an increase in trade payables of ¥690.691 million, income tax refunds of ¥145.428 million, and interest and dividends received of ¥107.180 million, partly offset by a cash outflow of ¥2,749.539 million due to an increase in trade receivables.」
An increase in trade receivables of ¥2,749.539 million resulted in operating cash flow being an outflow of ¥1,422.340 million. The increase in contract assets and other items accompanying growth in orders and sales has translated into an actual cash outflow.