Funding needs arising from the timing gap between payments and collections in joint procurement services
First written in FY2024-Q2. 5 of 5 entries say "Materialised", first in FY2024-Q2. Latest entry: FY2026-H1.
Kusurinomadoguchi moved to the "Worse" side of this theme in 2023.
1 other company's latest entry also says "Materialised".
- FY2026-H1MaterialisedAnnual report
「This was mainly due to a temporary effect of the difference between payment and collection periods under the procurement support service in the Minna no Oyakubako business, together with short-term borrowings, which resulted in a decrease of ¥149,945 thousand in cash and deposits and an increase of ¥58,737 thousand in merchandise and finished goods.」
The difference between payment and collection periods under the procurement support service continued to reduce cash and deposits by ¥149,945 thousand in the interim period. Accounts payable also decreased by ¥305,986 thousand, contributing to the decline in operating cash flow. - FY2025MaterialisedAnnual report
「Until then, pharmaceutical payments were mainly collected from participating pharmacies after 53 or 83 days, while payments to pharmaceutical wholesalers were made after 90 days. Following a change in the service’s business partner, pharmaceutical payments collected after 53 days are now paid after 60 days, while those collected after 83 days are paid after 90 days. As a result, accounts payable decreased by ¥7.6 billion in the fiscal year ending March 2025, reducing funds tied up in the business.」
The change in business partner for the procurement support service changed collection and payment terms, resulting in a ¥7.6 billion decrease in accounts payable and an actual operating cash outflow of ¥5,326,790 thousand. - FY2025-H1MaterialisedAnnual report
「This was mainly due to a temporary effect of the difference between payment and collection periods under the group purchasing service in the Minna no Oyakubako business, together with short-term borrowings, which resulted in a decrease of ¥4,783,746 thousand in cash and deposits and an increase of ¥350,999 thousand in notes and accounts receivable and contract assets.」
The difference between payment and collection periods continues to affect cash movements, resulting in a ¥4,783,746 thousand decrease in cash and deposits and a ¥350,999 thousand increase in notes and accounts receivable and contract assets. Short-term borrowings decreased by ¥5,100,000 thousand, with financing cash inflows of ¥5,000,000 thousand and repayments of ¥10,100,000 thousand disclosed. - FY2024-Q3MaterialisedAnnual report
「This was mainly due to a temporary effect of the difference between payment and collection periods under the group purchasing service in the Minna no Oyakubako business, together with short-term borrowings, which resulted in an increase of ¥7,827,510 thousand in cash and deposits and an increase of ¥720,912 thousand in notes and accounts receivable and contract assets.」
The difference between payment and collection periods continues to appear as a source of increases in cash and receivables, with an impact of ¥7,827,510 thousand on cash and deposits and ¥720,912 thousand on notes and accounts receivable and contract assets. - FY2024-Q2MaterialisedAnnual report
「This was mainly due to a temporary effect of the difference between payment and collection periods under the group purchasing service in the Minna no Oyakubako business, together with short-term borrowings, which resulted in an increase of ¥5,726,033 thousand in cash and deposits and an increase of ¥477,946 thousand in notes and accounts receivable and contract assets. Cash provided by financing activities was ¥4,995,086 thousand, mainly reflecting proceeds of ¥10,000,000 thousand from short-term borrowings related to the group purchasing service and repayments of short-term borrowings of ¥5,000,000 thousand.」
The difference between payment and collection periods under the group purchasing service is disclosed as an actual source of cash movements, including increased cash and proceeds from and repayments of short-term borrowings.