Risk of Excess Inventory Due to Demand Fluctuations
First written in FY2016. 2 of 20 entries say "Worsened", first in FY2022. Latest entry: FY2026-H1.
The whole theme swung hardest in 2022: 13 of 37 companies on the "Worse" side.
7 other companies' latest entry also says "Other".
- FY2026-H1Increase in inventory balanceAnnual report
「Finished goods 4,711,762 4,964,482 Work in process 2,119,445 2,794,875 Raw materials and supplies 2,326,098 2,554,145」
Compared with the end of the previous fiscal year, finished goods increased by approximately ¥253 million, work in process by approximately ¥675 million, and raw materials and supplies by approximately ¥228 million. No causal relationship with excess inventory or long-term inventory retention was explicitly stated. - FY2025-H1Change in inventory compositionAnnual report
「Finished goods 4,799,006 4,613,616 Work in process 2,070,025 2,216,491 Raw materials and supplies 1,989,293 2,140,893」
Compared with the end of the previous fiscal year, finished goods decreased by ¥185 million, while work in process increased by ¥146 million and raw materials and supplies increased by ¥152 million. No causal relationship with excess inventory or long-term inventory retention was explicitly stated. - FY2024-Q2Continued decrease in finished goods inventoryAnnual report
「Decrease in finished goods: ¥266 million」
The finished goods balance decreased by ¥266 million from the end of the previous fiscal year. It was not explicitly stated that excess inventory or long-term inventory had decreased. - FY2024-Q1Decrease in finished goods and raw materials inventoryAnnual report
「Decrease in finished goods: ¥377 million; decrease in raw materials and supplies: ¥277 million」
At the end of the first quarter under review, the balances of finished goods and raw materials and supplies decreased. It was not explicitly stated that write-downs of long-term inventory or excess inventory had decreased. - FY2023WorsenedAnnual report
「Write-down of long-term inventory (Note) 904,125 1,427,548」
The write-down of long-term inventory increased from ¥904.125 million in the previous fiscal year to ¥1,427.548 million. The risk of inventory remaining unsold due to prolonged product verification in the Electronic Materials Business and production based on anticipated demand expanded as an accounting loss. - FY2023-Q3Change in inventory compositionAnnual report
「Products 4,625,496 4,539,040 Work in process 1,985,897 2,150,736 Raw materials and supplies 2,437,106 2,355,580」
Finished goods and raw materials and supplies decreased, while work in process increased. The combined balance of finished goods, work in process, raw materials and supplies was broadly unchanged from the end of the previous fiscal year, and no causal relationship with excess inventory or long-term inventory retention was explicitly stated. - FY2023-Q2Increase in inventory balanceAnnual report
「Increase in products: ¥312 million; increase in work in process: ¥363 million」
The combined balances of products and work in process increased by ¥675 million from the end of the previous consolidated fiscal year. No causal relationship with excess inventory or long-stagnant inventory is explicitly stated. - FY2023-Q1Increase in inventory balanceAnnual report
「Increase in products: ¥488 million; increase in work in process: ¥207 million; increase in raw materials and supplies: ¥266 million」
The combined balances of products, work in process, raw materials and supplies increased by ¥961 million. No causal relationship with excess inventory or long-stagnant inventory is explicitly stated. - FY2022WorsenedAnnual report
「Write-down of long-stagnant inventories (Note) 785,588 904,125」
The write-down of long-stagnant inventories increased from ¥785.588 million in the previous year to ¥904.125 million. The risk relating to stagnant products, work in process, raw materials and supplies has expanded and is reflected as an accounting write-down. - FY2022-Q3Continued increase in raw-material inventoriesAnnual report
「Increase in raw materials and supplies: ¥754 million」
Raw materials and supplies increased by ¥754 million from the end of the previous consolidated fiscal year. The increase in inventory is disclosed, but no causal relationship with excess inventory or long-stagnant inventory is explicitly stated. - FY2022-Q2Increase in raw-material inventoriesAnnual report
「Total assets at the end of the second quarter of the current consolidated fiscal year increased by ¥1,848 million from the end of the previous consolidated fiscal year to ¥51,717 million. This was mainly attributable to increases of ¥1,030 million in notes and accounts receivable and contract assets and ¥605 million in raw materials and supplies.」
Raw materials and supplies increased by ¥605 million from the end of the previous consolidated fiscal year. The increase in inventory is disclosed, but no causal relationship with excess inventory or long-stagnant inventory is explicitly stated. - FY2021MaterialisedAnnual report
「The Company and its consolidated subsidiaries held products of ¥4,886.661 million, work in process of ¥2,038.298 million, and raw materials and supplies of ¥1,706.178 million, and recorded a ¥785.588 million write-down of long-stagnant inventories as cost of sales in the current consolidated fiscal year.」
For long-stagnant inventory, the Company discloses the balances of products and other inventories and a ¥785.588 million write-down, showing that the risk relating to demand fluctuations and stagnant products has emerged as an accounting loss. - FY2021-Q3Continued increase in product inventoriesAnnual report
「This was mainly attributable to increases of ¥845 million in cash and deposits, ¥999 million in notes and accounts receivable, and ¥784 million in products, as well as a ¥791 million decrease in property, plant and equipment.」
The balance of products increased by ¥784 million from the end of the previous consolidated fiscal year. The increase in inventory is disclosed, but the Company does not explicitly state that excess inventory arose. - FY2021-Q2Continued increase in product inventoriesAnnual report
「Total assets at the end of the second quarter of the current consolidated fiscal year increased by ¥2,296 million from the end of the previous consolidated fiscal year to ¥47,620 million. This was mainly attributable to increases of ¥1,064 million in notes and accounts receivable, ¥403 million in products, and ¥344 million in investment securities due mainly to an increase in valuation differences on shares held to maintain business relationships.」
The balance of products increased by ¥403 million from the end of the previous consolidated fiscal year. The increase in inventory is disclosed, but the Company does not explicitly state that excess inventory arose. - FY2020Continued increase in product inventoriesAnnual report
「This was mainly attributable to a ¥587 million decrease in notes and accounts receivable, a ¥455 million increase in products, and a ¥1,398 million increase in property, plant and equipment associated with the construction of new manufacturing and research facilities.」
The balance of products increased by ¥455 million from the end of the previous fiscal year. Although the Company confirms a change in an inventory-related balance during the full year, it does not explicitly describe the increase as excess inventory. - FY2020-Q2Increase in product inventoriesAnnual report
「This was mainly attributable to a ¥1,546 million increase in cash and deposits due primarily to an increase in long-term borrowings, a ¥376 million increase in products, and a ¥324 million decrease in investment securities due mainly to a decline in valuation differences on shares held to maintain business relationships.」
The Company states that products increased by ¥376 million. However, it does not itself link this to the emergence of excess inventory or demand falling below forecast. - FY2019Increase in inventory valuation lossAnnual report
「Cash flows from operating activities increased by ¥3,506 million, mainly due to profit before income taxes of ¥4,181 million, depreciation of ¥1,771 million, an increase in trade receivables of ¥724 million resulting in part from the last day of the current consolidated fiscal year falling on a holiday for financial institutions, an increase in inventories of ¥643 million, and income taxes paid of ¥1,199 million.」
Inventories increased by ¥643 million. The write-down of inventories for the current period due to lower profitability was ¥201.743 million, but the Company did not explicitly state that excess inventory had arisen. - FY2018RestatedAnnual report
「The Company and its subsidiaries take measures to prevent excess inventory by adjusting production in line with fluctuations in customer demand. However, if demand falls substantially below the sales forecast and excess inventory remains due to economic conditions or sudden changes in the end markets for the products of the Company and its subsidiaries, this may affect their operating results.」
Reiterates the risk of excess inventory arising from demand fluctuations and the countermeasure of adjusting production in line with demand. - FY2018-Q1Impact of customer inventory adjustments confirmedAnnual report
「Sales in the Semiconductor Materials Group declined due in part to the impact of inventory adjustments.」
In connection with the existing risks relating to demand fluctuations and inventory, the Company states that inventory adjustments in the Semiconductor Materials Group were a factor behind the decline in sales. It does not, however, explicitly state that excess inventory arose at the Company. - FY2016First statedAnnual report
「The Company and its subsidiaries take measures to prevent excess inventory by adjusting production in line with fluctuations in customer demand. However, if demand falls substantially below the sales forecast and excess inventory remains due to economic conditions or sudden changes in the end markets for the products of the Company and its subsidiaries, this may affect their operating results.」
While identifying production adjustments in line with demand as a countermeasure, the Company identifies the possibility that excess inventory may remain due to sudden changes in end markets as a risk.