Risk of Inventory Valuation Losses Due to Declining Selling Prices and Slow-Moving Inventories
First written in FY2022. 1 of 2 entries say "Materialised", first in FY2026. Latest entry: FY2026.
Nippon Crucible moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2018: 3 of 9 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Inventory valuation losses (a negative figure represents a reversal) are presented net of reversals.」
For highly varied inventory, the company recognized an inventory valuation loss of ¥5.458 million in the current period, indicating that valuation risk associated with selling prices and the length of time inventory remains unsold has materialized. - FY2022First statedAnnual report
「We hold a wide variety of inventory because the sizes and materials of our products and merchandise differ depending on the customer and application. If the selling prices of these inventories decline, we write down their carrying amounts to fair value; if they have not moved recently, we recognize valuation losses based on the length of time they have remained in inventory. Accordingly, the Group’s performance may be affected depending on selling prices and the length of time inventory remains unsold.」
For highly varied inventory, the company disclosed for the first time as a standalone risk that valuation losses based on lower selling prices or the length of time inventory remains unsold may affect performance, together with its policy of ensuring appropriate valuation through internal control procedures.