Risk of excess inventory and inventory valuation losses from production based on anticipated demand
First written in FY2017. 4 of 9 entries say "Mitigated", first in FY2020. Latest entry: FY2025.
SHINTO Holdings moved to the "Worse" side of this theme in 2018, 5 years before the typical company in this theme (2023).
The whole theme swung hardest in 2026: 23 of 43 companies on the "Worse" side.
15 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「Inventory valuation loss 24,774 —」
The inventory valuation loss, which was ¥24.774 million in the previous fiscal year, was not recognized in the current fiscal year, indicating a decrease in valuation losses associated with build-to-forecast production and excess inventories. - FY2024WorsenedAnnual report
「Inventory valuation loss 24,774 —」
The inventory valuation loss increased from none in the previous fiscal year to ¥24.774 million in the current fiscal year, indicating that the inventory valuation loss risk has re-emerged. - FY2023MitigatedAnnual report
「Inventory valuation loss 15,198 —」
The inventory valuation loss, which was ¥15.198 million in the previous fiscal year, was not recognized in the current fiscal year, indicating a decrease in valuation losses associated with build-to-forecast production and excess inventories. - FY2022MitigatedAnnual report
「Inventory valuation loss 36,697 15,198」
The inventory valuation loss decreased from ¥36.697 million in the previous fiscal year to ¥15.198 million. Valuation losses associated with build-to-forecast production and excess inventories remain, but the amount has declined. - FY2021WorsenedAnnual report
「Inventory valuation loss 7,549 36,697」
The inventory valuation loss increased from ¥7.549 million in the previous fiscal year to ¥36.697 million. Valuation losses related to build-to-forecast production and excess inventories have expanded again after declining previously. - FY2020MitigatedAnnual report
「Inventory valuation loss: ¥19.606 million」
Inventory valuation losses related to build-to-forecast production and excess inventories continued to be recognized, but the amount decreased from ¥19.606 million in the previous fiscal year to ¥7.549 million. - FY2019MaterialisedAnnual report
「Inventory valuation loss: ¥19.606 million」
In connection with the risks of excess inventories and inventory valuation losses arising from build-to-forecast production, the company recognized an inventory valuation loss of ¥19.606 million in the current consolidated fiscal year as well. - FY2018MaterialisedAnnual report
「Inventory valuation loss: ¥26.438 million」
In connection with the risks of excess inventories and inventory valuation losses arising from build-to-forecast production, the company actually recognized an inventory valuation loss of ¥26.438 million in the current consolidated fiscal year. - FY2017First statedAnnual report
「To secure competitiveness in terms of cost, delivery times and lot sizes, some of the company's products are ordered on a build-to-forecast basis. If demand is forecast incorrectly, the company may hold excessive inventories as off-season merchandise. Because off-season merchandise is subject to a specified write-down each fiscal year based on its estimated selling price, holding significantly excessive inventory could affect the company's performance through the recognition of inventory valuation losses.」
The company describes as inventory risks incorrect demand forecasts for products made on a build-to-forecast basis, excess inventories of off-season merchandise, and the potential recognition of inventory valuation losses.