Risk of Slow-Moving Inventory and Declining Net Realizable Value
First written in FY2022. 3 of 10 entries say "Worsened", first in FY2023-Q3. Latest entry: FY2026.
The whole theme swung hardest in 2018: 10 of 36 companies on the "Worse" side.
25 other companies' latest entry also says "Other".
- FY2026Inventory up, but write-downs downAnnual report
「The amounts of inventory write-downs recognized as expenses in the previous consolidated fiscal year and the current consolidated fiscal year were ¥121.131 million and ¥69.535 million, respectively.」
Although the inventory balance increased from ¥2,439.383 million in the previous fiscal year to ¥3,124.741 million, write-downs decreased from ¥121.131 million to ¥69.535 million, resulting in mixed movements in inventory valuation risk. - FY2025Inventory down, but write-downs upAnnual report
「Inventories amounted to ¥2,439.383 million, a decrease of ¥743 million from the end of the previous consolidated fiscal year.」
Although the inventory balance decreased from ¥3,182.833 million to ¥2,439.383 million, inventory write-downs increased from ¥90.497 million to ¥121.131 million, resulting in mixed movements in inventory valuation risk. - FY2025-H1MitigatedAnnual report
「This was mainly because trade and other receivables increased by ¥1,404 million, while inventories decreased by ¥462 million.」
Inventories decreased by ¥462 million from ¥3,182.833 million at the previous fiscal year-end to ¥2,720.234 million, reducing exposure to the risks of inventory becoming slow-moving and of a decline in net realizable value. - FY2024Inventory down, but write-downs upAnnual report
「The amounts of inventory write-downs recognized as expenses in the previous consolidated fiscal year and the current consolidated fiscal year were ¥51.396 million and ¥90.497 million, respectively.」
Although the inventory balance decreased from ¥3,406.646 million in the previous fiscal year to ¥3,182.833 million, write-downs increased from ¥51.396 million to ¥90.497 million, resulting in mixed movements in inventory valuation risk. - FY2024-Q3Up from the previous quarter, but down from the fiscal year-endAnnual report
「This was mainly because trade and other receivables increased by ¥267 million, while cash and cash equivalents decreased by ¥409 million and inventories decreased by ¥303 million.」
Inventories decreased by ¥303 million from ¥3,406.646 million at the fiscal year-end to ¥3,103.298 million, but increased from ¥2,368.656 million at the end of the previous quarter, resulting in mixed movements in exposure to the risks of inventory becoming slow-moving and of a decline in net realizable value. - FY2024-Q2MitigatedAnnual report
「This was mainly because trade and other receivables increased by ¥763 million and cash and cash equivalents increased by ¥346 million, while inventories decreased by ¥1,037 million.」
Inventories decreased by ¥1,037 million from ¥3,406.646 million to ¥2,368.656 million, reducing exposure from the previous quarter to the risks of inventory becoming slow-moving and of a decline in net realizable value. - FY2024-Q1WorsenedAnnual report
「This was mainly because inventories increased by ¥231 million and trade and other receivables increased by ¥103 million, while cash and cash equivalents decreased by ¥265 million.」
Inventories increased by ¥231 million from the end of the previous consolidated fiscal year to ¥3,637.818 million. Exposure to the risk of inventory becoming slow-moving and of a decline in net realizable value if market conditions deteriorate increased. - FY2023WorsenedAnnual report
「If market conditions deteriorate more than expected and net realizable value falls significantly, a loss may arise.」
Inventories increased from ¥2,467.765 million in the previous fiscal year to ¥3,406.646 million, increasing the risk of a decline in net realizable value due to deterioration in future demand or market conditions. Write-downs also increased from ¥39.666 million in the previous fiscal year to ¥51.396 million. - FY2023-Q3WorsenedAnnual report
「This was mainly because inventories increased by ¥988 million, while cash and cash equivalents decreased by ¥1,522 million.」
Inventories increased by ¥988 million from the end of the previous consolidated fiscal year to ¥3,456 million. Although delays and cancellations of construction starts were also disclosed for the construction market, there was no disclosure that a decline in net realizable value or an inventory write-down had occurred during the quarter. - FY2022First statedAnnual report
「If market conditions deteriorate more than expected and net realizable value falls significantly, a loss may arise.」
The potential decline in the net realizable value of inventories totaling ¥2,467.765 million due to deterioration in future demand or market trends, and the resulting potential inventory write-down, have newly been identified as material accounting estimates.