Product Inventory Fluctuation Risk
First written in FY2016. 9 of 22 entries say "Worsened", first in FY2021-Q3. Latest entry: FY2026.
Titan Kogyo moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2022: 16 of 47 companies on the "Worse" side.
16 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「This was due to cash inflows from income before income taxes and other adjustments of ¥237 million, depreciation and amortisation of ¥726 million, a ¥306 million decrease in inventories, and a ¥118 million increase in notes and accounts payable, despite cash outflows from a ¥470 million increase in trade receivables and other factors.」
Inventories decreased by ¥306 million, and cash flow from operating activities was an inflow of ¥1,023 million. The impact of the previously expanding increase in inventories contracted during the current fiscal year. - 2026-05-15MitigatedResults
「This was due to cash inflows from income before income taxes and other adjustments of ¥237 million, depreciation and amortisation of ¥726 million, a ¥306 million decrease in inventories, and a ¥118 million increase in notes and accounts payable, despite cash outflows from a ¥470 million increase in trade receivables and other factors.」
棚卸資産の減少306百万円が営業キャッシュ・フローの資金増加要因となった。 - FY2026-H1MitigatedAnnual report
「This was mainly due to an increase of ¥318 million in electronically recorded monetary claims, despite decreases of ¥134 million in work in process and ¥293 million in property, plant and equipment.」
Work in process decreased by ¥134 million from the end of the previous consolidated fiscal year, while the ¥173 million decrease in inventories was a cash inflow factor in cash flow. The impact of the previously expanding increase in inventories contracted during the current interim consolidated fiscal period. - FY2025-H1Increase in merchandise and finished-goods inventoriesAnnual report
「Total assets at the end of the interim consolidated fiscal period were ¥13,868 million, a decrease of ¥1,014 million from the end of the previous consolidated fiscal year. This was mainly due to decreases of ¥811 million in notes and accounts receivable, ¥258 million in property, plant and equipment, and ¥274 million in investments and other assets, despite increases of ¥240 million in cash and deposits and ¥202 million in merchandise and finished goods.」
Merchandise and finished goods increased by ¥202 million, from ¥2,695 million at the end of the previous consolidated fiscal year to ¥2,897 million, while trade receivables decreased by ¥811 million. The change in inventory composition has been updated. - FY2024-Q2Update to inventory compositionAnnual report
「Total assets at the end of the second quarter of the current consolidated fiscal year were ¥16,444 million, a decrease of ¥311 million from the end of the previous consolidated fiscal year. This was mainly due to decreases of ¥105 million in notes and accounts receivable, ¥218 million in electronically recorded monetary claims, ¥104 million in merchandise and finished goods, ¥110 million in raw materials and supplies, and ¥296 million in property, plant and equipment, despite increases of ¥167 million in cash and deposits and ¥147 million in work in process.」
Merchandise and finished goods decreased by ¥104 million and raw materials and supplies by ¥110 million, while work in process increased by ¥147 million. The change in inventory composition has been updated. - FY2024-Q1Small increase in merchandise and finished goods inventoriesAnnual report
「Merchandise and finished goods 3,277 3,335」
Merchandise and finished goods increased by ¥58 million, from ¥3,277 million at the end of the previous consolidated fiscal year to ¥3,335 million. Meanwhile, work in process and raw materials and supplies decreased. - FY2023WorsenedAnnual report
「Cash flow from operating activities for the current consolidated fiscal year was an outflow of ¥204 million, compared with an inflow of ¥687 million in the previous consolidated fiscal year. This was due to cash outflows from a ¥1,459 million increase in inventories and a ¥213 million decrease in notes and accounts payable, despite cash inflows from income before income taxes and other adjustments of ¥239 million, depreciation and amortisation of ¥857 million, and a ¥426 million decrease in trade receivables.」
The increase in inventories expanded to ¥1,459 million, causing cash flow from operating activities to turn from an inflow of ¥687 million in the previous fiscal year to an outflow of ¥204 million. Ending inventories also reached ¥5,542 million, and the impact of inventory fluctuations is expanding. - FY2023-Q3WorsenedAnnual report
「Total assets at the end of the third quarter of the current consolidated fiscal year were ¥16,906 million, an increase of ¥534 million from the end of the previous consolidated fiscal year. This was mainly due to increases of ¥915 million in merchandise and finished goods, ¥197 million in work in process, and ¥442 million in raw materials and supplies, despite decreases of ¥262 million in notes and accounts receivable, ¥384 million in electronically recorded monetary claims, and ¥466 million in property, plant and equipment.」
Merchandise and finished goods, work in process, and raw materials and supplies increased by ¥915 million, ¥197 million and ¥442 million, respectively, from the end of the previous consolidated fiscal year, and the increase in inventories expanded further from the previous quarter. - FY2023-Q2WorsenedAnnual report
「Total assets at the end of the second quarter of the current consolidated fiscal year were ¥17,171 million, an increase of ¥799 million from the end of the previous consolidated fiscal year. This was mainly due to increases of ¥802 million in merchandise and finished goods, ¥165 million in work in process, and ¥374 million in raw materials and supplies, despite decreases of ¥402 million in notes and accounts receivable and ¥278 million in property, plant and equipment.」
Merchandise and finished goods, work in process, and raw materials and supplies increased by ¥802 million, ¥165 million and ¥374 million, respectively, and the increase in inventories accelerated further. The risk has been quantified in actual figures. - FY2023-Q1WorsenedAnnual report
「This was mainly due to decreases of ¥104 million in notes and accounts receivable and ¥196 million in property, plant and equipment, offset by increases of ¥141 million in electronically recorded monetary claims and ¥427 million in merchandise and finished goods.」
Merchandise and finished goods increased by ¥427 million from the end of the previous consolidated fiscal year, and product inventories continued to rise. The risk is true and has been quantified. - FY2022WorsenedAnnual report
「This was due to cash inflows from income before income taxes and other adjustments of ¥283 million, depreciation and amortisation of ¥853 million, and a ¥567 million increase in notes and accounts payable, despite cash outflows from a ¥612 million increase in trade receivables, a ¥719 million increase in inventories, and other items.」
The cash outflow from the increase in inventories expanded from ¥254 million in the previous fiscal year to ¥719 million. Ending inventories also increased from ¥3,362 million to ¥4,082 million. - FY2022-Q3WorsenedAnnual report
「Total assets at the end of the third quarter of the current consolidated fiscal year were ¥16,211 million, an increase of ¥507 million from the end of the previous consolidated fiscal year. This was mainly due to increases of ¥275 million in notes and accounts receivable, ¥406 million in merchandise and finished goods, ¥242 million in work in process, and ¥105 million in raw materials and supplies, despite a ¥355 million decrease in property, plant and equipment.」
Merchandise and finished goods, work in process, and raw materials and supplies increased by ¥406 million, ¥242 million and ¥105 million, respectively, from the end of the previous consolidated fiscal year, and inventory growth continues. - FY2022-Q2WorsenedAnnual report
「This was mainly due to decreases of ¥155 million in property, plant and equipment, offset by increases of ¥108 million in electronically recorded monetary claims, ¥266 million in merchandise and finished goods, and ¥146 million in work in process.」
Merchandise and finished goods increased by ¥266 million and work in process by ¥146 million from the end of the previous consolidated fiscal year, indicating that inventory growth continued. - FY2022-Q1Increase in merchandise and finished-goods inventoriesAnnual report
「This was mainly due to increases of ¥1,447 million in cash and deposits and ¥271 million in merchandise and finished goods.」
Merchandise and finished goods at the end of the first quarter of the current consolidated fiscal year increased by ¥271 million from the end of the previous consolidated fiscal year. - FY2021WorsenedAnnual report
「Cash flow from operating activities for the current consolidated fiscal year was an outflow of ¥149 million, compared with ¥1,872 million in the previous consolidated fiscal year. This was due to cash outflows from a ¥157 million loss before income taxes and other adjustments, a ¥254 million increase in inventories, a ¥151 million decrease in notes and accounts payable, and ¥330 million in other operating cash outflows, despite cash inflows from ¥751 million in depreciation and amortisation and other items.」
The increase in inventories of ¥254 million and other factors caused cash flow from operating activities to turn from an inflow of ¥1,872 million in the previous fiscal year to an outflow of ¥149 million, confirming the impact of inventory fluctuations for the full fiscal year as well. - FY2021-Q3WorsenedAnnual report
「This was mainly due to decreases of ¥275 million in cash and deposits, ¥507 million in notes and accounts receivable, and ¥254 million in machinery, equipment and vehicles, offset by increases of ¥159 million in electronically recorded monetary claims, ¥157 million in merchandise and finished goods, ¥107 million in work in process, ¥146 million in raw materials and supplies, ¥157 million in other current assets, ¥1,821 million in construction in progress, and ¥10 million in intangible assets.」
Merchandise and finished goods, work in process, and raw materials and supplies increased by a combined ¥410 million from the end of the previous consolidated fiscal year, indicating that inventory growth continued. - FY2021-Q2MaterialisedAnnual report
「Cash flow from operating activities was an outflow of ¥123 million, compared with an inflow of ¥698 million in the same period of the previous year. This was mainly due to cash outflows from a ¥125 million loss before income taxes and other adjustments, a ¥637 million increase in inventories and a ¥137 million decrease in notes and accounts payable, despite a ¥781 million cash inflow from a decrease in trade receivables.」
The ¥637 million increase in inventories was a cash outflow factor, causing cash flow from operating activities to turn from an inflow of ¥698 million in the same period of the previous year to an outflow of ¥123 million. - FY2020RestatedAnnual report
「The Group's product inventories are managed based on standard inventory levels required to achieve efficient production and sales, as well as appropriate cost accounting and inventory valuation rules. However, if the business environment changes abruptly in the future, this may affect the Group's operating results and other factors.」
The risk of fluctuations in product inventories and the response through standard inventory-level management, cost accounting and inventory valuation continue. - FY2019RestatedAnnual report
「The company's product inventories are managed based on standard inventory levels required to achieve efficient production and sales, as well as appropriate cost accounting and inventory valuation rules. However, if the business environment changes abruptly in the future, this may affect the company's financial position and operating results.」
The risk of fluctuations in product inventories and the response through standard inventory-level management, cost accounting and inventory valuation continue. - FY2018RestatedAnnual report
「The company's product inventories are managed based on standard inventory levels required to achieve efficient production and sales, as well as appropriate cost accounting and inventory valuation rules. However, if the business environment changes abruptly in the future, this may affect the company's financial position and operating results.」
The risk of fluctuations in product inventories and the response through inventory management continue. - FY2017RestatedAnnual report
「The company's product inventories are managed based on standard inventory levels required to achieve efficient production and sales, as well as appropriate cost accounting and inventory valuation rules. However, if the business environment changes abruptly in the future, this may affect the company's financial position and operating results.」
The risk of fluctuations in product inventories and the response based on standard inventory-level management and inventory valuation rules continue. - FY2016First statedAnnual report
「The company's product inventories are managed based on standard inventory levels required to achieve efficient production and sales, as well as appropriate cost accounting and inventory valuation rules. However, if the business environment changes abruptly in the future, this may affect the company's financial position and operating results.」
The company manages standard inventory levels and responds under its cost accounting and inventory valuation rules, while identifying abrupt changes in the business environment as a risk.