Inventory obsolescence and valuation losses caused by fluctuations in demand and raw material prices
First written in FY2020. 6 of 9 entries say "Materialised", first in FY2021. Latest entry: FY2026.
Fuso Chemical moved to the "Worse" side of this theme in 2021, 2 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".
- FY2026MitigatedAnnual report
「The period-end inventory balance is stated after a write-down of its carrying amount due to lower profitability, and the following inventory valuation loss is included in cost of sales. ¥477.268 million」
Inventory valuation losses declined from ¥575.339 million in the previous fiscal year to ¥477.268 million, reducing the scale of valuation losses associated with fluctuations in demand and prices. - FY2025WorsenedAnnual report
「The period-end inventory balance is stated after a write-down of its carrying amount due to lower profitability, and the following inventory valuation loss is included in cost of sales. ¥575.339 million」
Inventory valuation losses increased from ¥446.671 million in the previous fiscal year to ¥575.339 million, and the valuation risk associated with fluctuations in demand and prices has increased. - FY2024MaterialisedAnnual report
「The period-end inventory balance is stated after a write-down of its carrying amount due to lower profitability, and the following inventory valuation loss is included in cost of sales. ¥446.671 million」
Inventory valuation losses amounted to ¥446.671 million, up from ¥227.424 million in the previous fiscal year. The valuation risk associated with fluctuations in demand and prices continues to materialize in the results. - FY2024-Q3MaterialisedAnnual report
「Although higher sales resulting from the weaker yen had a positive effect, sales were below the cumulative total for the previous quarter's corresponding consolidated period, partly due to the after-effects of the global inventory buildup caused by logistics disruptions during the COVID-19 pandemic.」
The after-effects of the global inventory buildup associated with logistics disruptions during the COVID-19 pandemic materialized as lower sales, and the impact related to demand and inventories continues. - FY2024-Q2MaterialisedAnnual report
「Sales were below the cumulative total for the previous quarter's corresponding consolidated period, partly due to the after-effects of the global inventory buildup caused by logistics disruptions during the COVID-19 pandemic.」
The after-effects of the global inventory buildup caused by past logistics disruptions materialized as lower demand and sales, and the impact of inventory and demand fluctuations continues. - FY2023MaterialisedAnnual report
「This was mainly because inventories increased as a result of higher raw material prices and the depreciation of the yen.」
Inventories increased due to higher raw material prices and the weaker yen, and an inventory valuation loss of ¥227.424 million was also recognized in the current fiscal year. - FY2022MaterialisedAnnual report
「The period-end inventory balance is stated after a write-down of its carrying amount due to lower profitability, and the following inventory valuation loss is included in cost of sales. ¥227.805 million」
An inventory valuation loss of ¥227.805 million was recognized, indicating that the valuation risk associated with fluctuations in demand, raw material prices and other factors has materialized in the results. - FY2021MaterialisedAnnual report
「In the current consolidated fiscal year, inventory valuation losses were included in cost of sales. ¥308.719 million」
Inventory valuation losses of ¥308.719 million related to fluctuations in demand, raw material prices and other factors were recognized, meaning that a risk previously described as a possibility has materialized in the results. - FY2020First statedAnnual report
「If affected by economic fluctuations, inventories may increase substantially and become obsolete, potentially affecting the performance of the Group. In addition, if fluctuations in raw material prices and foreign exchange rates cause the carrying amount of inventories to exceed market prices and the lower-of-cost-or-market method is applied, the Group's performance may be affected.」
The risk of increased and obsolete inventories and write-downs of their carrying amount arising from fluctuations in demand, raw material prices and foreign exchange rates has been newly listed as a standalone item.