Increase in Inventories and Lengthening of the Inventory Turnover Period
First written in FY2018. 11 of 26 entries say "Worsened", first in FY2019. Latest entry: FY2026.
Ivy Cosmetics moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 14 of 40 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The inventory turnover period was 8.5 months, compared with 9.4 months in the previous fiscal year. This was mainly due to a ¥41.510 million reduction in inventories during the fiscal year.」
The turnover period shortened as inventories were reduced, but it remains above the 6.0-month target set as the normal level. - FY2026-H1WorsenedAnnual report
「During the interim accounting period, inventories, one of the relevant factors, totaled ¥610.425 million, up 4.4% from ¥584.728 million at the end of the previous fiscal year. As a result, the inventory turnover period was 10.2 months.」
Inventories increased 4.4% from the end of the previous fiscal year, and the inventory turnover period increased from 9.4 months to 10.2 months. The gap from the normal inventory turnover period of 6.0 months remains. - FY2025MitigatedAnnual report
「The inventory turnover period was 9.4 months, compared with 12.2 months in the previous fiscal year. This was mainly due to a ¥185.478 million reduction in inventories during the fiscal year.」
Inventory risk declined as inventories were reduced and the turnover period shortened, but the period remains above the 6.0-month target. - FY2025-H1MitigatedAnnual report
「During the interim accounting period, inventories, one of the relevant factors, totaled ¥747.270 million, down 3.0% from ¥770.207 million at the end of the previous fiscal year. As a result, the inventory turnover period was 12.2 months.」
Inventories declined 3.0% from the end of the previous fiscal year. The inventory turnover period was 12.2 months, still above the 6.0-month target set as the normal level. - FY2024MitigatedAnnual report
「The inventory turnover period was 12.2 months, compared with 13.3 months in the previous fiscal year. This was due to a ¥85.765 million reduction in inventories during the fiscal year. The company will continue working to return it to a normal level, with a target of 6.0 months.」
Inventories and the turnover period improved, but the turnover period of 12.2 months remains above the 6.0-month target. - FY2024-Q3Inventory increased while the turnover period improvedAnnual report
「During the nine months ended the third quarter, inventories, one of the relevant factors, totaled ¥931.548 million, up 8.8% from ¥855.972 million at the end of the previous fiscal year. As a result, the inventory turnover period was 12.9 months. The company will continue working to return it to a normal level, with a target of 6.0 months.」
Inventories increased 8.8% from the end of the previous fiscal year, while the inventory turnover period shortened from 13.3 months at the previous fiscal year-end to 12.9 months. The gap from the 6.0-month target remains. - FY2024-Q2MitigatedAnnual report
「During the six months ended the second quarter, inventories, one of the relevant factors, totaled ¥784.300 million, down 8.3% from ¥855.972 million at the end of the previous fiscal year. As a result, the inventory turnover period was 12.2 months.」
Inventories declined 8.3% from the end of the previous fiscal year, and the inventory turnover period improved from 13.3 months to 12.2 months. However, the gap from the 6.0-month target remains. - FY2024-Q1WorsenedAnnual report
「During the first quarter, inventories, one of the relevant factors, totaled ¥917.951 million, up 7.2% from ¥855.972 million at the end of the previous fiscal year. This was due to an increase in inventories of new products and other items.」
Inventories increased 7.2% from the end of the previous fiscal year due to higher inventories of new products and other items, putting inventory risk back into the figures. - FY2023WorsenedAnnual report
「The inventory turnover period was 13.3 months. Although the turnover rate improved slightly from the previous fiscal year, this was because lower cost of sales during the fiscal year caused the inventory holding period to increase. The company will continue working to return it to a normal level, with a target of 6.0 months.」
The full-year inventory turnover period deteriorated from 11.4 months in the previous fiscal year to 13.3 months, and the gap from the 6.0-month target remains. - FY2023-Q3WorsenedAnnual report
「The inventory turnover period increased to 20.7 months from 11.4 months at the end of the previous fiscal year. This was due to higher purchasing and manufacturing costs for products to be sold in the fourth quarter and lower cost of sales during the nine months ended the third quarter. The company will continue working to return it to a normal level, with a target of 6.0 months.」
Higher purchasing and manufacturing costs for fourth-quarter products and lower cost of sales caused the inventory turnover period to deteriorate from 11.4 months to 20.7 months, widening the gap from the 6.0-month target. - FY2023-Q2Failure to meet inventory reduction plan; broadly unchangedAnnual report
「Because sales during the six months ended the second quarter fell substantially below expectations, inventories did not decline by the planned amount and remained broadly unchanged.」
Inventories declined only 0.5% from the end of the previous fiscal year. Because sales fell substantially below expectations, the planned inventory reduction was not achieved and inventories remained broadly unchanged. - FY2023-Q1WorsenedAnnual report
「During the first quarter, inventories, one of the relevant factors, totaled ¥1,103.374 million, up 11.5% from ¥989.551 million at the end of the previous fiscal year. This was due to an increase in inventories of new products and other items.」
Inventories increased 11.5% from ¥989.551 million to ¥1,103.374 million due to higher inventories of new products and other items. The gap from the normal inventory turnover period of 6.0 months remains. - FY2022WorsenedAnnual report
「The inventory turnover period was 11.4 months. Although the turnover rate improved slightly from the previous fiscal year, this was because lower cost of sales during the fiscal year caused the inventory holding period to increase. The company will continue working to return it to a normal level, with a target of 6.0 months.」
The inventory turnover period increased from 9.9 months in the previous fiscal year to 11.4 months, widening the gap from the 6.0-month target. Inventory risk remains. - FY2022-Q3WorsenedAnnual report
「The inventory turnover period increased to 16.7 months from 9.9 months at the end of the previous fiscal year. This was due to higher purchasing and manufacturing costs for products to be sold in the fourth quarter and lower cost of sales.」
Higher purchasing and manufacturing costs for fourth-quarter products and lower cost of sales caused the inventory turnover period to deteriorate from 9.9 months to 16.7 months, widening the gap from the 6.0-month target. - FY2022-Q2WorsenedAnnual report
「The inventory turnover period increased to 14.1 months from 9.9 months at the end of the previous fiscal year due to higher purchases ahead of new product launches and a decline in cost of sales.」
Higher purchases ahead of new product launches and lower cost of sales caused the inventory turnover period to deteriorate from 9.9 months to 14.1 months. - FY2022-Q1WorsenedAnnual report
「The inventory turnover period increased to 10.3 months from 9.9 months at the end of the previous fiscal year due to higher purchases ahead of new product launches during the first quarter. The company will continue working to return it to a normal level, with a target of 6.0 months.」
Higher purchase costs ahead of new product launches caused the inventory turnover period to deteriorate from 9.9 months at the end of the previous fiscal year to 10.3 months, widening the gap from the 6.0-month target. - FY2021MitigatedAnnual report
「The inventory turnover period improved to 9.9 months from 12.3 months in the previous fiscal year and 15.0 months in the fiscal year before that. However, this resulted from a decline in the inventory turnover period due to higher inventory purchase costs and a high cost of sales.」
The inventory turnover period shortened from 15.0 months to 12.3 months and then to 9.9 months, but remains above the 6.0-month target. - FY2021-Q3MitigatedAnnual report
「The inventory turnover period shortened to 11.7 months from 12.3 months at the end of the previous fiscal year.」
The inventory turnover period shortened from 12.3 months at the end of the previous fiscal year to 11.7 months. However, it remains above the 6.0-month target set as the normal level. - FY2021-Q2MitigatedAnnual report
「The inventory turnover period shortened to 11.4 months from 12.3 months at the end of the previous fiscal year.」
The inventory turnover period shortened from 12.3 months at the end of the previous fiscal year to 11.4 months. However, it remains above the 6.0-month target set as the normal level. - FY2021-Q1WorsenedAnnual report
「The inventory turnover period increased to 13.2 months from 12.3 months at the end of the previous fiscal year due to higher purchases ahead of new product launches. The company will continue working to return it to a normal level, with a target of 6.0 months.」
Higher purchases ahead of new product launches caused the inventory turnover period to deteriorate from 12.3 months at the end of the previous fiscal year to 13.2 months, widening the gap from the 6.0-month target. - FY2020-Q2MitigatedAnnual report
「Cash used in operating activities during the six months ended the second quarter was ¥505.294 million, compared with ¥487.641 million generated in the same period of the previous year. This was mainly despite an ¥87.840 million increase in accrued expenses and a ¥71.725 million decrease in inventories, among other factors」
Inventories decreased by ¥71.725 million, indicating progress in reducing inventory. However, operating cash flow was negative, and the company did not state that the overall risk had been eliminated. - FY2019WorsenedAnnual report
「The company adjusted inventory accumulated in the fiscal year ended March 2018, but the inventory turnover period deteriorated to 15.0 months from 13.4 months because revenue declined substantially during the fiscal year.」
Although inventory was adjusted, the inventory turnover period deteriorated from 13.4 months to 15.0 months because revenue declined substantially. - FY2019-Q3MaterialisedAnnual report
「The substantial decline in revenue was mainly attributable to inventory adjustments by distributors for the enhanced product Red Power Serum, which fell 84.3% from the cumulative third-quarter period of the previous year,」
Inventory adjustments by distributors continue to be reflected in results as a major factor behind declines in orders and sales of core products. - FY2019-Q2MaterialisedAnnual report
「During the cumulative second-quarter period, orders for the key product "Red Power Serum" declined sharply due to adjustments to distribution inventory at sales companies, resulting in revenue of ¥1,739 million, down 49.0% year on year.」
Inventory adjustments by distributors led to a substantial decline in revenue through lower orders for core products, indicating that inventory risk continues to materialize. - FY2019-Q1MaterialisedAnnual report
「Although new products were launched during the first quarter accounting period, the company focused on strengthening sales of inventory held by the sales organization, and sales therefore remained roughly in line with the same quarter of the previous year.」
The company states that strengthening sales of inventory held by the sales organization was the focus of sales activities during the quarter, and that sales remained almost at the year-earlier level despite the launch of new products. - FY2018First statedAnnual report
「The inventory turnover period increased to 13.4 months from 7.0 months in the previous fiscal year because the company prepared products to generate ¥40 billion in sales at list prices.」
The company explains that preparing products for its list-price sales target caused the inventory turnover period to deteriorate from 7.0 months to 13.4 months.