Risk of Inventory Write-Downs from Increased BCP Inventory and Deteriorating Supply and Demand
First written in FY2023. 1 of 3 entries say "Worsened", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2018: 11 of 39 companies on the "Worse" side.
37 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The Group is working to refine its production plans by improving the accuracy of supply and demand forecasts through DX. It also groups items based on sales value and other factors, and sets safety stock levels and ordering and production conditions for each group.」
Inventories declined to ¥7.992 billion, or 12.8% of total assets. Specific measures were outlined, including DX-based supply and demand forecasting, item-specific safety stock levels and ordering and production conditions, and inventory turnover management. - FY2025WorsenedAnnual report
「The Group reported inventories of ¥8.5 billion on its consolidated balance sheet for the fiscal year ending March 2025, equivalent to 13.6% of total assets.」
Inventories increased to ¥8.5 billion, or 13.6% of total assets, from ¥8.413 billion and 12.7%, respectively, in the previous disclosure. The risk of write-downs during periods of deteriorating supply and demand remains disclosed. - FY2023First statedAnnual report
「The Group reported inventories of ¥8.413 billion on its consolidated balance sheet for the fiscal year ending March 2023, equivalent to 12.7% of total assets. Inventories held by the Group have been trending upward from a business continuity planning (BCP) perspective against a backdrop of increasingly severe natural disasters, the spread of infectious diseases and an unstable global situation stemming from Russia's invasion of Ukraine. Consequently, if product market conditions decline significantly due to a sharp deterioration in the supply-demand balance or other factors, inventory write-downs could affect the Group's operating results and financial position.」
The Group reported inventories of ¥8.413 billion, equivalent to 12.7% of total assets. As inventories have been trending upward due to BCP considerations, the risk of write-downs during periods of deteriorating supply and demand was disclosed as a separate risk.