Impact of Product Inventory Fluctuations on Gross Profit and Operating Cash Flow
First written in FY2020. 9 of 23 entries say "Materialised", first in FY2020. Latest entry: 2026-11-04.
Dainichi moved to the "Worse" side of this theme in 2025, 3 years after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 41 of 155 companies on the "Worse" side.
4 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Current assets amounted to ¥21,201 million, down ¥379 million from the end of the previous fiscal year. This was mainly attributable to a ¥2,012 million increase in securities and a ¥518 million increase in products, offset by a ¥2,755 million decrease in cash and deposits.」
Product inventory increased by ¥518 million from the previous year-end, indicating an impact on working capital together with the decrease in cash and deposits. The risk associated with changes in inventory also became evident during the period. - 2026-05-13MaterialisedResults
「これは主に、有価証券が20億12百万円、製品が５億18百万円増加したものの、現金及び預金が27億55百万円減少したことによるものであります。」
製品在庫が前期末から5億18百万円増加している。一方、営業活動によるキャッシュ・フローは20億39百万円の獲得となっており、在庫増加の影響が直ちに営業キャッシュ・フローの支出となったとの記載ではない。 - FY2026-H1MaterialisedAnnual report
「Funds used in operating activities amounted to ¥5,574 million, down 3.4% year on year. This was mainly attributable to an increase of ¥3,086 million in trade receivables, an increase of ¥1,941 million in inventories, and a decrease of ¥456 million in deposits received.」
Inventories increased by ¥1,941 million and, together with the increase in trade receivables, resulted in a ¥5,574 million cash outflow from operating activities. The risk that changes in inventory would affect gross profit and operating cash flow became evident during the interim period. - FY2025-H1MaterialisedAnnual report
「Funds used in operating activities amounted to ¥5,769 million, down 17.4% year on year. This was mainly attributable to an increase of ¥2,690 million in trade receivables, an increase of ¥1,930 million in inventories, and a decrease of ¥851 million in deposits received.」
Inventories increased by ¥1,930 million and, together with the increase in trade receivables, resulted in a ¥5,769 million cash outflow from operating activities. The risk that changes in inventory would affect operating cash flow became evident during the interim period. - FY2024MaterialisedAnnual report
「Funds generated from operating activities amounted to ¥111 million, down 94.5% from the end of the previous fiscal year. This was mainly attributable to pretax income of ¥1,255 million, depreciation and amortization of ¥806 million, an increase of ¥781 million in trade receivables, and an increase of ¥628 million in inventories.」
Inventories increased by ¥628 million and, together with the increase in trade receivables, put pressure on cash flow from operating activities. Funds generated from operating activities amounted to ¥111 million, down 94.5% from the previous period, and the impact of changes in inventory became evident throughout the fiscal year. - FY2024-Q3MitigatedAnnual report
「The main factors were increases of ¥6.256 billion in notes and accounts receivable and ¥1.933 billion in electronically recorded monetary claims, and decreases of ¥4.327 billion in cash and deposits and ¥2.250 billion in finished goods.」
Product inventory decreased by ¥2,250 million from the end of the previous fiscal year, reversing the situation through the previous quarter, when product inventory had continued to increase. The impact of changes in inventory on gross profit and operating cash flow remains. - FY2024-Q2Inventories continue to increaseAnnual report
「This was mainly attributable to an increase of ¥4,166 million in trade receivables, an increase of ¥2,311 million in inventories, and a decrease of ¥566 million in deposits received.」
Inventories increased by ¥2,311 million and, together with the increase in trade receivables, became a factor behind the ¥6,986 million cash outflow from operating activities. The impact of changes in inventory on gross profit and operating cash flow continues. - FY2024-Q1Increase in product inventoriesAnnual report
「The main factors were a ¥4,525 million decrease in cash and deposits and a ¥2,631 million increase in products.」
Product inventory increased by ¥2,631 million from the end of the previous fiscal year to ¥7,077 million. The impact of changes in product inventory on assets and operating cash flow was also evident in the first quarter. - FY2023MaterialisedAnnual report
「This was mainly attributable to pretax income of ¥1,651 million, depreciation and amortization of ¥865 million, and an increase of ¥513 million in inventories.」
Inventories increased by ¥513 million during the period, while product inventory also increased by ¥466 million from the previous year-end. The impact of changes in inventory on operating cash flow was evident throughout the fiscal year. - FY2023-Q3MitigatedAnnual report
「Total assets at the end of the third quarter stood at ¥31.452 billion, up ¥2.489 billion from the end of the previous fiscal year. The main factors were increases of ¥5.773 billion in notes and accounts receivable and ¥2.617 billion in electronically recorded monetary claims, and decreases of ¥4.470 billion in cash and deposits and ¥2.340 billion in finished goods.」
Product inventory decreased by ¥2,340 million from the end of the previous fiscal year, reversing the increases in products and inventories that had continued through the previous quarter. The impact of changes in inventory on gross profit and operating cash flow remains. - FY2023-Q2Inventories continue to increaseAnnual report
「This was mainly attributable to an increase of ¥3,827 million in trade receivables, an increase of ¥2,507 million in inventories, and a decrease of ¥507 million in deposits received.」
Inventories increased by ¥2,507 million from the end of the previous fiscal year and, together with the increase in trade receivables, became a factor behind the ¥6,524 million cash outflow from operating activities. The impact of changes in inventory on gross profit and cash flow continues. - FY2023-Q1Increase in product inventoriesAnnual report
「Total assets at the end of the first quarter stood at ¥27.217 billion, down ¥1.746 billion from the end of the previous fiscal year. The main factors were decreases of ¥3.824 billion in cash and deposits and ¥1.562 billion in notes and accounts receivable, and an increase of ¥2.744 billion in finished goods.」
Product inventory increased by ¥2,744 million from the end of the previous fiscal year, rising from ¥3,980 million to ¥6,724 million. The impact of changes in product inventory on assets and cash flow has emerged again. - FY2022Increase in finished goods inventory for the full yearAnnual report
「Product 3,387,677 3,980,254」
Product inventory increased from ¥3,387.67 million at the previous year-end to ¥3,980.25 million. Cash flow from operating activities fell sharply, from ¥5,527.60 million generated in the previous period to ¥546.38 million generated. - FY2022-Q3MitigatedAnnual report
「Product 3,387,677 1,850,637」
Product inventory decreased from ¥3,387 million at the end of the previous fiscal year to ¥1,850 million, reversing the continued increase in inventory seen at the previous year-end. The impact of changes in product inventory on gross profit and operating cash flow remains. - FY2022-Q2Continued increase in product inventoriesAnnual report
「The main factors were a ¥3.550 billion increase in products, a ¥2.252 billion increase in notes and accounts receivable, and a ¥9.616 billion decrease in cash and deposits.」
The product balance increased by ¥3.550 billion from the end of the previous fiscal year, while the increase in inventories amounted to ¥3.606 billion. The situation in which changes in product inventories affect assets and cash flow has continued. - FY2022-Q1Increase in product inventoriesAnnual report
「The main factors were a ¥4.870 billion decrease in cash and deposits, a ¥1.913 billion decrease in notes and accounts receivable, and a ¥3.162 billion increase in products.」
The product balance increased by ¥3.162 billion from the end of the previous fiscal year. The risk that changes in product inventories would affect gross profit and operating cash flow was again reflected in an increase in inventories during the quarter. - FY2021MitigatedAnnual report
「This was mainly attributable to a ¥3.170 billion decrease in inventories and recognition of ¥2.033 billion in profit before income taxes.」
Inventories, including product inventories, decreased by ¥3.170 billion, and cash flows from operating activities turned from an outflow of ¥86 million in the previous fiscal year to an inflow of ¥5.527 billion. The impact of inventory changes on gross profit and cash flow improved during the fiscal year. - FY2021-Q3MitigatedAnnual report
「The main factors behind the changes were an increase of ¥9,149 million in notes and accounts receivable, a decrease of ¥5,013 million in products, a decrease of ¥2,407 million in cash and deposits, and a decrease of ¥256 million in other property, plant and equipment.」
The product balance decreased by ¥5.013 billion from the end of the previous fiscal year, reversing the situation through the previous quarter, when product inventories had continued to increase. - FY2021-Q2Continued increase in product inventoriesAnnual report
「Total assets at the end of the second quarter of the current fiscal year decreased by ¥1.966 billion from the end of the previous fiscal year to ¥25.561 billion. The main factors were a ¥2.682 billion increase in notes and accounts receivable, a ¥1.899 billion increase in products, and a ¥6.581 billion decrease in cash and deposits.」
The product balance increased by ¥1.899 billion from the end of the previous fiscal year. Against a backdrop of increases in trade receivables and inventories, cash flows from operating activities represented an outflow of ¥5.998 billion. - FY2021-Q1Increase in product inventoriesAnnual report
「The main factors were a ¥3.574 billion decrease in cash and deposits, a ¥1.347 billion decrease in notes and accounts receivable, and a ¥2.288 billion increase in products.」
The product balance increased by ¥2.288 billion from the end of the previous fiscal year. The impact amount on gross profit and operating cash flow is not disclosed because a cash flow statement was not prepared for the current quarter. - FY2020MaterialisedAnnual report
「Amid the recent trend toward warmer winters, changes in product inventories have had an increasingly significant impact on gross profit and cash flows from operating activities.」
The company identified the impact of changes in product inventories on gross profit and operating cash flow as a new management issue. During the fiscal year, inventories increased by ¥1.602 billion, and cash flows from operating activities represented an outflow of ¥86 million.