Management of Credit Risk on Trade Receivables and Liquidity Risk on Trade Payables
First written in FY2017. 2 of 6 entries say "Materialised", first in FY2023-Q1. Latest entry: FY2026.
Nitta moved to the "Worse" side of this theme in 2022, 4 years before the typical company in this theme (2026).
The whole theme swung hardest in 2023: 5 of 16 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Trade receivables declined as a result of efforts to improve the cash conversion cycle and other measures, while cash and deposits increased due in part to the sale of cross-shareholdings.」
The company states that trade receivables declined as a result of improvements to the cash conversion cycle, indicating progress in the management of trade receivables and liquidity. - FY2026-H1MitigatedAnnual report
「Current assets decreased by ¥1,019 million from the end of the previous fiscal year to ¥83,243 million, mainly because trade receivables declined as the collection of receivables from customers was accelerated.」
The company states that current assets and trade receivables declined from the end of the previous fiscal year, mainly because the collection of receivables from customers was accelerated. Progress in collection efforts is indicated as a response to credit and liquidity risks. - FY2023MaterialisedAnnual report
「Provision for allowance for doubtful accounts: ¥43 million」
Regarding the credit risk of trade receivables, the company recorded a provision for allowance for doubtful accounts of ¥43 million during the period. - FY2023-Q1MaterialisedAnnual report
「Due in part to the impact of recording an allowance for doubtful accounts on receivables from Russian distributors, operating profit was ¥1,466 million, down ¥34 million, or 2.3%, year on year.」
Regarding customer credit risk, the allowance for doubtful accounts recorded against receivables from Russian distributors appeared in the results and became a factor reducing operating profit. - FY2020RestatedAnnual report
「Notes and accounts receivable, which are trade receivables, are exposed to customers’ credit risk. The group manages this risk by monitoring due dates and outstanding balances for each business partner in accordance with its credit management rules, and has a system for regularly monitoring the credit status of its principal business partners.」
The company reaffirmed its management system for customer credit risk and the liquidity risk of trade payables, based on credit management, monitoring due dates and outstanding balances, and cash-flow planning. - FY2017First statedAnnual report
「Notes and accounts receivable, which are trade receivables, are exposed to customers’ credit risk. The group manages this risk by monitoring due dates and outstanding balances for each business partner in accordance with its credit management rules, and has a system for regularly monitoring the credit status of its principal business partners.」
The company recognizes customer credit risk and the liquidity risk of trade payables, and describes a management system based on credit management rules, monitoring the due dates and outstanding balances of business partners, and monthly cash-flow planning.