Securing stable operating cash flow through inventory and trade receivables management
First written in FY2016. 7 of 31 entries say "Worsened", first in FY2021-Q2. Latest entry: 2026-07-13.
Merf moved to the "Worse" side of this theme in 2021.
0 other companies' latest entry also says "Worsened".
- 2026-07-13WorsenedRevision to earnings forecasts
「This was mainly due to increases of ¥2.865 billion in trade receivables, ¥4.597 billion in inventories and ¥1.753 billion in advances paid, partly offset by a decrease of ¥416 million in cash and deposits.」
The increases in trade receivables, inventories and advances paid, together with the decrease in cash and deposits, indicate a greater working capital burden affecting the stabilization of operating cash flow. - FY2026-H1WorsenedAnnual report
「Cash used in operating activities during the six months ended the interim consolidated accounting period was ¥1,578 million (compared with ¥2,678 million provided in the same period of the prior year). This was mainly because, although profit before income taxes for the interim period was ¥2,582 million and depreciation was ¥225 million, trade receivables increased by ¥1,721 million, inventories by ¥1,431 million and advances paid by ¥1,363 million.」
Operating cash flow changed from ¥2,678 million provided in the same period of the prior year to ¥1,578 million used. Increases in trade receivables, inventories and advances paid were sources of cash outflow. - FY2025AdvancedAnnual report
「Cash provided by operating activities was ¥2,322 million (compared with ¥827 million provided in the same period of the prior year).」
Operating cash flow increased from ¥827 million in the prior year to ¥2,322 million, as a decrease in trade receivables, among other items, contributed to cash generation. - FY2025-H1AdvancedAnnual report
「Cash provided by operating activities during the six months ended the interim consolidated accounting period was ¥2,678 million (compared with ¥1,899 million provided in the same period of the prior year).」
Operating cash flow increased from ¥1,899 million in the same period of the prior year to ¥2,678 million, as decreases in inventories and trade receivables, among other items, contributed to cash generation. - FY2024MitigatedAnnual report
「Cash provided by operating activities was ¥827 million (compared with ¥1,598 million provided in the prior year). This was mainly due to cash inflows from profit before income taxes of ¥945 million, a decrease in inventories of ¥1,411 million and an increase in trade payables of ¥615 million, which exceeded cash outflows including an increase in trade receivables of ¥1,735 million and an increase in advances paid of ¥401 million.」
Although operating cash flow decreased from the prior year, ¥827 million was provided. The ¥1,411 million decrease in inventories contributed to cash generation. - FY2024-Q3Inventories increased significantlyAnnual report
「This was mainly because advances paid decreased by ¥731 million, while inventories increased by ¥4,658 million and marketable securities increased by ¥318 million.」
Inventories increased by ¥4,658 million from the end of the previous consolidated fiscal year, increasing the working capital burden associated with securing stable operating cash flow. However, no statement of cash flows was prepared for the nine months ended the third quarter. - FY2024-Q2AdvancedAnnual report
「Cash provided by operating activities during the six months ended the second quarter was ¥1,899 million (compared with ¥1,189 million provided in the same period of the prior year). This was mainly because trade receivables decreased by ¥1,197 million, consumption taxes receivable and other items decreased by ¥601 million, and advances paid decreased by ¥586 million, while inventories increased by ¥707 million.」
Although inventories increased, operating cash flow rose from ¥1,189 million in the same period of the prior year to ¥1,899 million, owing to decreases in trade receivables, consumption taxes receivable and other items, and advances paid. - FY2024-Q1Inventories up, but trade receivables downAnnual report
「Current assets at the end of the first quarter of the current consolidated fiscal year were ¥21,889 million, an increase of ¥33 million from the end of the previous consolidated fiscal year. This was mainly due to decreases of ¥1,613 million in trade receivables and ¥507 million in advances paid, while inventories increased by ¥1,842 million and other current assets increased by ¥558 million.」
Trade receivables and advances paid decreased, while inventories increased by ¥1,842 million, leaving working capital management mixed. - FY2023AdvancedAnnual report
「Cash provided by operating activities was ¥1,598 million (compared with ¥2,068 million used in the prior year). This was mainly due to cash inflows from profit before income taxes of ¥260 million, a decrease in trade receivables of ¥623 million, an increase in trade payables of ¥341 million and a decrease in advances paid of ¥404 million, which exceeded cash outflows including the ¥416 million increase in inventories.」
Operating cash flow changed from ¥2,068 million used in the prior year to ¥1,598 million provided. Although inventories increased, decreases in trade receivables and advances paid, among other items, contributed to cash generation. - FY2023-Q3Inventories up, but trade receivables downAnnual report
「This was mainly because inventories increased by ¥1,330 million, while trade receivables decreased by ¥1,961 million.」
In terms of working capital, trade receivables decreased, while inventories increased by ¥1,330 million. As no statement of cash flows from operating activities was prepared, operating cash flow for the quarter is not shown. - FY2023-Q2AdvancedAnnual report
「Cash provided by operating activities during the six-month period ended in the second quarter was ¥1.189 billion, compared with cash used of ¥482 million in the same quarter of the previous year. This was mainly because inventories increased by ¥1.004 billion, while trade receivables decreased by ¥798 million, consumption tax receivable decreased by ¥707 million and advances paid decreased by ¥467 million.」
Operating cash flow changed from an outflow of ¥482 million in the same quarter of the previous year to an inflow of ¥1.189 billion. Although inventories increased, decreases in trade receivables, consumption tax receivable and advances paid contributed to cash generation. - FY2023-Q1Inventories up, but trade receivables down and cash upAnnual report
「This was mainly because cash and deposits increased by ¥1,042 million and inventories increased by ¥2,275 million, while notes and accounts receivable decreased by ¥1,062 million and other current assets decreased by ¥1,045 million.」
While trade receivables decreased and cash increased, inventories rose by ¥2.275 billion, resulting in mixed conditions regarding the securing of stable operating cash flow through working capital management. - FY2022MitigatedAnnual report
「Cash used in operating activities was ¥2.068 billion, compared with ¥3.902 billion used in the previous year. This was due mainly to cash inflows including pretax profit of ¥845 million and a ¥209 million decrease in inventories, offset by cash outflows including a ¥727 million increase in trade receivables, a ¥647 million increase in advances paid, an ¥801 million increase in consumption tax receivable and ¥1.127 billion in corporate income tax payments.」
Operating cash flow improved from an outflow of ¥3.902 billion in the previous year to an outflow of ¥2.068 billion, and the decrease in inventories also contributed to cash inflows. Operating cash flow nevertheless remained negative. - FY2022-Q3WorsenedAnnual report
「Current assets at the end of the third quarter of the current consolidated fiscal period totaled ¥2,561.4 million, up ¥499.5 million from the end of the previous consolidated fiscal year. This was mainly because inventories increased by ¥2,272 million and advances paid increased by ¥1,673 million.」
Inventories increased by ¥2.272 billion and advances paid by ¥1.673 billion, indicating a higher working capital burden in efforts to secure stable operating cash flow through inventory and trade receivables management. - FY2022-Q2Operating cash flow deficit continues, but outflow narrowsAnnual report
「Cash used in operating activities during the six-month period ended in the second quarter was ¥482 million. This was mainly because pretax quarterly profit was ¥555 million, trade receivables decreased by ¥247 million and trade payables increased by ¥217 million, while inventories increased by ¥327 million, advances paid increased by ¥562 million and corporate income tax payments were ¥733 million.」
Operating cash flow remained negative at an outflow of ¥482 million, but the outflow narrowed from ¥688 million in the same quarter of the previous year. Increases in inventories and advances paid were sources of cash outflows. - FY2022-Q1WorsenedAnnual report
「Current assets at the end of the first quarter consolidated accounting period were ¥21.944 billion, an increase of ¥1.325 billion from the end of the previous consolidated fiscal year. This was mainly due to increases of ¥842 million in cash and deposits and ¥522 million in inventories.」
Inventories increased by ¥522 million, expanding the working capital burden associated with securing stable operating cash flow, in contrast to the inventory reduction seen in the previous fiscal year. - FY2021WorsenedAnnual report
「Cash used in operating activities was ¥3.902 billion, compared with cash provided of ¥1.5 billion in the previous year. This was due mainly to cash inflows including pretax profit of ¥2.096 billion and a ¥1.084 billion increase in trade payables, offset by cash outflows including a ¥4.560 billion increase in trade receivables and a ¥2.198 billion increase in inventories.」
Operating cash flow changed from an inflow of ¥1.5 billion in the previous fiscal year to an outflow of ¥3.902 billion, with the working capital burden increasing due to higher trade receivables and inventories. - FY2021-Q3WorsenedAnnual report
「Current assets at the end of the third quarter of the current consolidated fiscal period totaled ¥1,972.6 million, up ¥600.6 million from the end of the previous consolidated fiscal year. This was mainly because trade receivables increased by ¥2,193 million and inventories increased by ¥3,380 million.」
Trade receivables and inventories increased significantly, expanding the working capital burden associated with securing stable operating cash flow through inventory and trade receivables management. - FY2021-Q2WorsenedAnnual report
「Cash used in operating activities during the six-month period ended in the second quarter was ¥688 million. This was mainly because pretax quarterly profit was ¥661 million and trade payables increased by ¥1.381 billion, while trade receivables increased by ¥1.879 billion and inventories increased by ¥880 million.」
Operating cash flow changed from an inflow of ¥1.629 billion in the same period of the previous year to an outflow of ¥688 million, with the working capital burden increasing as trade receivables and inventories rose. - FY2021-Q1Higher working capital burden due to increased inventoriesAnnual report
「Current assets at the end of the first quarter consolidated accounting period were ¥14.765 billion, an increase of ¥1.045 billion from the end of the previous consolidated fiscal year. This was mainly due to a ¥1.252 billion increase in inventories.」
Inventories increased by ¥1.252 billion, expanding the working capital burden, in contrast to the inventory reduction that contributed to improved operating cash flow in the previous fiscal year. - FY2020AdvancedAnnual report
「Cash provided by operating activities was ¥1.5 billion, compared with cash used of ¥49 million in the previous year. This was due mainly to cash inflows including pretax profit of ¥561 million, a ¥428 million decrease in trade receivables and a ¥734 million decrease in inventories, offset by cash outflows including a ¥473 million decrease in trade payables and a ¥261 million increase in advances paid.」
Operating cash flow changed from an outflow of ¥49.14 million in the previous fiscal year to an inflow of ¥1.5 billion, demonstrating in numerical terms the securing of liquidity through inventory and trade receivables management. - FY2020-Q3MitigatedAnnual report
「This was mainly because cash and deposits increased by ¥1,117 million, while inventories decreased by ¥1,476 million and advances paid decreased by ¥288 million.」
Inventories and advances paid decreased, while cash and deposits increased. The reduction in the inventory burden indicates improved liquidity secured through inventory and trade receivables management. - FY2020-Q2MitigatedAnnual report
「Cash provided by operating activities during the six-month period ended in the second quarter was ¥1.629 billion. This was mainly attributable to pretax quarterly profit of ¥368 million and cash inflows of ¥1.091 billion from a decrease in inventories.」
Inventories decreased by ¥1.091 billion, resulting in operating cash flow of ¥1.629 billion. This represents an improvement from the inventory increases and operating cash outflows reported through the previous quarter. - FY2020-Q1MitigatedAnnual report
「Current assets at the end of the first quarter consolidated accounting period were ¥12.894 billion, a decrease of ¥1.825 billion from the end of the previous consolidated fiscal year. This was mainly due to decreases of ¥702 million in trade receivables and ¥676 million in inventories.」
Inventories, which had increased at the end of the previous fiscal year, decreased by ¥676 million, while trade receivables also decreased by ¥702 million. The working capital burden has contracted from the period of increases through the previous quarter. - FY2019-Q3Significant increase in inventoriesAnnual report
「Current assets at the end of the third quarter consolidated accounting period were ¥15.255 billion, an increase of ¥144 million from the end of the previous consolidated fiscal year. This was mainly due to a ¥2.295 billion increase in inventories, while trade receivables decreased by ¥929 million and advances paid decreased by ¥906 million.」
While trade receivables and advances paid decreased, inventories increased by ¥2.295 billion, indicating a higher inventory burden in efforts to secure stable operating cash flow through working capital management. - FY2019-Q2Operating cash flow deficit due to higher inventoriesAnnual report
「Cash used in operating activities during the six-month period ended in the second quarter was ¥410 million. This was mainly attributable to cash inflows of ¥1.042 billion from a decrease in trade receivables and ¥653 million from a decrease in advances paid, offset by pretax quarterly loss of ¥261 million and cash outflows of ¥2.250 billion from an increase in inventories, among other factors.」
Although there were cash inflows from decreases in trade receivables and advances paid, ¥410 million was used in operating activities due mainly to a ¥2.250 billion increase in inventories. - FY2019-Q1Higher inventories and lower trade receivablesAnnual report
「This was mainly attributable to a ¥952 million increase in inventories, a ¥549 million decrease in trade receivables, a ¥351 million decrease in consumption tax receivable and a ¥318 million decrease in cash and deposits.」
Regarding working capital related to securing stable operating cash flow, inventories increased while trade receivables decreased. A cash flow statement was not prepared for the first quarter. - FY2018Full-year operating cash flow deficitAnnual report
「Cash used in operating activities was ¥603 million, up 19.9% year on year. This was due mainly to cash inflows including pretax profit of ¥679 million, depreciation of ¥177 million and a ¥665 million decrease in inventories, offset by cash outflows including a ¥740 million increase in trade receivables, a ¥521 million increase in advances paid and ¥816 million in corporate income tax payments.」
Although operating activities had shifted to generating cash in the second quarter, cash used in operating activities for the full year was ¥603 million. - FY2018-Q2MitigatedAnnual report
「Cash provided by operating activities during the six-month period ended in the second quarter was ¥492 million. This was mainly attributable to pretax quarterly profit of ¥956 million, cash inflows of ¥1.279 billion from a decrease in inventories, and cash outflows of ¥982 million from an increase in trade receivables, among other factors.」
Operating cash flow changed from an outflow of ¥1.228 billion in the same period of the previous year to an inflow of ¥492 million in the current period. The decrease in inventories contributed to operating cash flow. - FY2017-Q2Operating cash outflow due to higher working capitalAnnual report
「Cash used in operating activities during the six-month period ended in the second quarter was ¥1.228 billion. This was mainly attributable to pretax quarterly profit of ¥955 million, cash inflows of ¥510 million from an increase in trade payables, and cash outflows of ¥1.579 billion from an increase in inventories and ¥1.452 billion from an increase in trade receivables, among other factors.」
Despite recording a profit, the company used ¥1.228 billion in operating activities due to increases in inventories and trade receivables. - FY2016First statedAnnual report
「Regarding liquidity, in addition to securing profits, we are working to ensure stable cash flow from operating activities by managing inventories and trade receivables.」
In addition to securing profits, the company uses inventory and trade receivables management as a means of securing liquidity.