Review of appropriate inventory levels and inventory valuation and disposal losses
First written in FY2019. . Latest entry: FY2026.
The whole theme swung hardest in 2025: 10 of 26 companies on the "Worse" side.
4 other companies' latest entry also says "Other".
- FY2026Increase in inventories and recognition of valuation lossesAnnual report
「The main items were an increase of ¥777 million in cash and deposits, an increase of ¥360 million in accounts receivable, an increase of ¥647 million in inventories, an increase of ¥103 million in property, plant and equipment, and an increase of ¥114 million in investment securities.」
Inventories at the end of the current consolidated fiscal year had increased ¥647 million from the end of the previous fiscal year, and an inventory valuation loss of ¥60.049 million was charged to cost of sales. - FY2026-H1Increase in inventories and raw materialsAnnual report
「The main items were an increase of ¥433 million in cash and deposits, an increase of ¥227 million in accounts receivable, an increase of ¥250 million in work in process, an increase of ¥194 million in raw materials and supplies, and an increase of ¥182 million in other current assets.」
At the end of the six-month interim consolidated period, work in process had increased ¥250 million and raw materials and supplies had increased ¥194 million. The company also reported a ¥451.945 million decrease in cash flow due to an increase in inventories. - FY2025Increase in inventories and reversal of valuation lossesAnnual report
「The main items were an increase of ¥155 million in work in process, an increase of ¥140 million in property, plant and equipment, an increase of ¥107 million in investment securities, a decrease of ¥284 million in cash and deposits, and a decrease of ¥352 million in accounts receivable.」
Work in process increased ¥155 million, and raw materials and supplies also increased, while the inventory valuation loss was reversed by ¥42.77 million, compared with a loss of ¥239 million in the previous fiscal year. - FY2025-H1Increase in InventoriesAnnual report
「Change in inventories (△ indicates an increase) △ ¥15.852 million」
Cash flows from operating activities for the six-month interim consolidated period were reduced by ¥15.852 million due to an increase in inventories. - FY2024Increase in Inventory Write-DownsAnnual report
「Inventory valuation losses ¥64.748 million ¥203.988 million」
Inventory valuation losses increased from ¥64.748 million in the previous fiscal year to ¥203.988 million. Work in process decreased ¥357 million, while merchandise and finished goods stood at ¥747 million. - FY2024-Q3Increase in merchandise and decrease in work in processAnnual report
「Total assets at the end of the third quarter of the current consolidated fiscal year were ¥16.149 billion, down ¥45 million from the end of the previous consolidated fiscal year. The main items were an increase of ¥216 million in cash and deposits, an increase of ¥358 million in accounts receivable, an increase of ¥272 million in merchandise and finished goods, a decrease of ¥260 million in work in process, and a decrease of ¥608 million in other current assets.」
At the end of the third quarter, merchandise and finished goods had increased ¥272 million, while work in process had decreased ¥260 million. - FY2024-Q2Increase in merchandise and decrease in work in processAnnual report
「The main items were an increase of ¥184 million in accounts receivable, an increase of ¥166 million in merchandise and finished goods, a decrease of ¥223 million in cash and deposits, a decrease of ¥136 million in work in process, and a decrease of ¥466 million in other current assets.」
At the end of the second quarter, merchandise and finished goods had increased ¥166 million, while work in process had decreased ¥136 million. - FY2024-Q1Increase in Merchandise, Finished Goods and Work in ProcessAnnual report
「The main items were an increase of ¥74 million in merchandise and finished goods, an increase of ¥88 million in work in process, an increase of ¥130 million in other current assets, a decrease of ¥225 million in cash and deposits, and a decrease of ¥276 million in accounts receivable.」
At the end of the first quarter, merchandise and finished goods had increased ¥74 million and work in process had increased ¥88 million. - FY2023Increase in inventories and work in processAnnual report
「The main items were an increase of ¥219 million in cash and deposits, an increase of ¥343 million in work in process, an increase of ¥496 million in other current assets, an increase of ¥3.313 billion in property, plant and equipment, a decrease of ¥2.755 billion in advances paid, and a decrease of ¥199 million in deferred tax assets.」
At the end of the current consolidated fiscal year, work in process had increased ¥343 million from the end of the previous fiscal year. The company also recorded an inventory valuation loss of ¥64.748 million. - FY2023-Q3Increase in work in processAnnual report
「The main items were an increase of ¥324 million in cash and deposits, an increase of ¥271 million in work in process, an increase of ¥599 million in other current assets, an increase of ¥3.209 billion in property, plant and equipment, a decrease of ¥318 million in accounts receivable, a decrease of ¥2.755 billion in advances paid, and a decrease of ¥194 million in deferred tax assets.」
At the end of the third quarter of the current consolidated fiscal year, work in process had increased ¥271 million from the end of the previous consolidated fiscal year. - FY2023-Q2Increase in inventories and work in processAnnual report
「The main items were an increase of ¥458 million in cash and deposits, an increase of ¥230 million in work in process, an increase of ¥413 million in other current assets, an increase of ¥3.187 billion in property, plant and equipment, and a decrease of ¥2.755 billion in advances paid.」
At the end of the second quarter, work in process had increased ¥230 million. The company also reported a ¥150 million decrease in funds from operating activities due to an increase in inventories. - FY2022Inventory risk materializes under the immediate-delivery systemAnnual report
「The Group holds inventories of a wide variety of products to establish a system for immediate delivery in response to customers' diverse product needs. Consequently, changes in market conditions could result in excess inventory. The recognition of product valuation losses could also affect the Group's performance and financial position and could disrupt cash flow.」
In addition to the previous description of reviewing and increasing inventory levels, the company explicitly identifies the risks of excess inventory, valuation losses and cash-flow disruption arising from holding a wide variety of products in inventory. - FY2022-Q3Increase in InventoriesAnnual report
「The main items were an increase of ¥1.216 billion in cash and deposits, an increase of ¥372 million in notes and accounts receivable and contract assets, and an increase of ¥318 million in inventories.」
At the end of the third quarter of the current consolidated fiscal year, inventories had increased ¥318 million from the end of the previous consolidated fiscal year. - FY2022-Q2Increase in InventoriesAnnual report
「The main items were an increase of ¥259 million in cash and deposits, an increase of ¥151 million in notes and accounts receivable and contract assets, and an increase of ¥166 million in inventories.」
At the end of the second quarter of the current consolidated fiscal year, inventories had increased ¥166 million from the end of the previous consolidated fiscal year. - FY2021Review and buildup of inventory levelsAnnual report
「The company has reviewed its inventory levels and increased inventory, while considering the balance with asset efficiency, so that the Group can absorb within the Group the unstable domestic and overseas supply-demand balance caused by the spread of COVID-19.」
In addition to the previously recorded inventory valuation and disposal losses, the company describes a policy of reviewing and increasing inventory levels to respond to supply-demand fluctuations during the pandemic. - FY2019First statedAnnual report
「In addition to the impact of lower profit due to lower sales and changes in the sales mix, the company recorded inventory valuation and disposal losses of ¥103 million following a review of appropriate inventory levels. Selling, general and administrative expenses also increased, mainly due to higher labor costs, resulting in an operating loss of ¥281 million, compared with operating profit of ¥386 million in the year-earlier period.」
Following a review of appropriate inventory levels, the company recorded inventory valuation and disposal losses of ¥103 million, resulting in an operating loss of ¥281 million.