Increase in costs on uncompleted contracts due to concentrated sales and decline in operating cash flow
First written in FY2017-Q2. 20 of 33 entries say "Reframed", first in FY2017-Q3. Latest entry: 2026-09-11.
Wesco Holdings moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 38 of 140 companies on the "Worse" side.
33 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「Operating activities used ¥4,864 million in cash, compared with a ¥4,519 million decrease in the same period of the previous year. This was mainly due to cash decreases from a ¥3,380 million increase in contract assets, ¥2,164 million in other changes resulting from payments of accounts payable and other liabilities, and a ¥509 million increase in trade receivables, among other factors.」
Due to increases in contract assets and trade receivables and payments of liabilities, cash used in operating activities increased from ¥4,519 million in the same period of the previous year to ¥4,864 million. - FY2025AdvancedAnnual report
「Operating activities generated ¥1,176 million in cash, an increase of ¥438 million in cash inflows from the previous consolidated fiscal year.」
Contract assets increased by ¥2,896.5 million, while operating cash flow increased to ¥1,176.31 million and free cash flow reached ¥1,213.56 million. - FY2025-H1WorsenedAnnual report
「Operating activities used ¥4,519 million in cash, compared with a ¥4,022 million decrease in the same period of the previous year. This was mainly because cash increased due to interim profit before income taxes of ¥608 million and a ¥562 million increase in the provision for bonuses, while cash decreased due to a ¥3,613 million increase in contract assets, ¥2,092 million in other changes resulting from payments of accounts payable and other liabilities, and a ¥443 million increase in trade receivables, among other factors.」
Due to increases in contract assets and payments of liabilities, cash used in operating activities increased from ¥4,022 million in the same period of the previous year to ¥4,519 million. - FY2024-Q3RestatedAnnual report
「Current assets included a ¥2,959 million increase in cash and deposits, reflecting the concentration in April of collections from government agencies, the main customers of the Group's core general construction consulting business. Meanwhile, notes receivable and completed work receivables decreased by ¥356 million and contract assets, which are unbilled receivables, decreased by ¥289 million, as collections were received and work was completed and delivered.」
The seasonal cash collection pattern was reconfirmed: cash and deposits increased due to the concentration of collections from government agencies in April, while completed work receivables and contract assets decreased as collections were received and work was completed and delivered. - FY2024-Q2ReframedAnnual report
「Against a backdrop of regulations on overtime work and the need to ensure the proper quality of deliverables, cases in which contract periods are extended have increased in order to secure appropriate project periods. In addition to the resulting delay in completion and delivery, the increase in large-scale, long-term projects such as PFI projects has tended to slightly extend the period required to collect cash.」
Contract assets increased by ¥3,096 million, and cash used in operating activities was ¥4,022 million. The focus has shifted to the timing of contract asset realization and cash collection amid longer project periods and an increase in large, long-term projects. - FY2023AdvancedAnnual report
「Free cash flow amounted to ¥698 million, an increase of ¥313 million from the previous consolidated fiscal year.」
Free cash flow increased from ¥385.05 million in the previous fiscal year to ¥698.31 million, strengthening its role as a source of funding for growth investment and shareholder returns. - FY2023-Q3ReframedAnnual report
「Current assets included a ¥1,316 million increase in cash and deposits, reflecting the concentration in March of collections from government agencies, the main customers of the Group's core general construction consulting business. Meanwhile, notes receivable and completed work receivables decreased by ¥652 million, contract assets, which are unbilled receivables, decreased by ¥610 million, and marketable securities decreased by ¥99 million due to redemptions.」
The focus has shifted from the previous quarter's explanation of lower operating cash to an increase in cash due to the concentration of collections from government agencies in March and a collection phase marked by decreases in completed work receivables and contract assets. - FY2023-Q2WorsenedAnnual report
「Operating activities used ¥4,622 million in cash, compared with a ¥4,048 million decrease in the same quarter of the previous year. Although cash increased mainly due to profit before income taxes of ¥452 million and a ¥403 million increase in the provision for bonuses, these effects were more than offset by cash decreases from a ¥3,021 million increase in contract assets, a ¥2,245 million change in other receivables and payables, and a ¥178 million increase in trade receivables, among other factors.」
The decrease in operating cash flow increased from ¥4,048 million in the same period of the previous year to ¥4,622 million. Contract assets increased by ¥3,021 million, with later delivery and billing dates and an increase in long-term projects affecting cash movements. - FY2023-Q1ReframedAnnual report
「In the general construction consulting business, the company bills for its services upon completion of delivery of the deliverables. However, contract periods have tended to be set longer than in previous years to ensure appropriate project schedules against the backdrop of overtime work regulations and the need to maintain appropriate quality, resulting in later delivery completion dates. In addition, as production under construction contracts is progressing as planned, contract assets, which are unbilled receivables, increased by ¥1,691 million.」
In addition to the traditional fluctuations in work-in-progress costs and operating cash flow caused by year-end concentration, the disclosure shows longer project periods due to overtime work regulations and quality assurance requirements, later delivery and billing dates, and a ¥1,691 million increase in contract assets. - FY2022AdvancedAnnual report
「Free cash flow for the current consolidated fiscal year was ¥385 million, an increase of ¥535 million from the previous consolidated fiscal year.」
Free cash flow changed from a negative ¥150.35 million in the previous consolidated fiscal year to a positive ¥385.05 million in the current fiscal year. - FY2022-Q2ReframedAnnual report
「Due to a change in accounting policy, namely the application of accounting standards for revenue recognition and other standards, work-in-progress costs decreased by ¥2,016 million, while contract assets increased by ¥4,568 million.」
The focus has shifted from asset and cash movements centered on work-in-progress costs to the transfer from work-in-progress costs to contract assets and the resulting increase following the application of the revenue recognition accounting standards. Cash flow from operating activities decreased by ¥4,048.014 million. - FY2022-Q1ReframedAnnual report
「Current assets included a ¥3,002 million decrease in cash and deposits, mainly due to payments of accounts payable and taxes. In addition, due to a change in accounting policy, namely the application of accounting standards for revenue recognition and other standards, work-in-progress costs decreased by ¥2,016 million, while contract assets increased by ¥3,008 million.」
The focus has shifted from the previous explanation of asset and cash movements centered on increases in work-in-progress costs to the transfer from work-in-progress costs to contract assets and the resulting increase following the application of the revenue recognition accounting standards. Cash and deposits decreased by ¥3,002 million. - FY2021WorsenedAnnual report
「Free cash flow was negative in the current consolidated fiscal year, mainly due to an increase in trade receivables and higher expenditures for the acquisition of investment securities. Nevertheless, in view of the Group's stable cash position relative to its business scale and its continued debt-free management, among other factors, it maintained a sound financial position.」
Free cash flow changed from a positive ¥1,482 million in the previous fiscal year to a negative ¥150 million in the current fiscal year. - FY2021-Q3ReframedAnnual report
「Current assets included increases of ¥763 million in cash and deposits and ¥746 million in work-in-progress costs. This was because revenue from the Group's core general construction consulting business is concentrated in March, the fiscal year-end for its main customers, government agencies, and cash collections are therefore concentrated during the same period, increasing cash and deposits.」
The focus has shifted from the decline in operating cash due to the previous quarter's increase in inventories to a phase in which cash and deposits increased by ¥763 million as a result of concentrated collections at fiscal year-end. Work-in-progress costs also increased by ¥746 million. - FY2021-Q2WorsenedAnnual report
「Operating activities used ¥4,137 million in cash, compared with a ¥3,177 million decrease in the same quarter of the previous year. This was mainly due to an increase of ¥2,080 million in inventories, among other factors.」
Due to the increase in inventories associated with the concentration of government projects at fiscal year-end, cash used in operating activities increased from ¥3,177 million in the same period of the previous year to ¥4,137 million. - FY2021-Q1ReframedAnnual report
「Current assets included a ¥2,926 million decrease in cash and deposits, mainly due to payments of accounts payable and taxes, and a ¥699 million decrease in marketable securities due to the redemption of beneficial interests in trusts held to invest surplus funds. Work-in-progress costs also increased by ¥1,128 million.」
The first quarter's seasonal cash movements included a decrease in cash due to payments of accounts payable and taxes, a decrease in marketable securities due to the redemption of beneficial interests in trusts, and an increase in work-in-progress costs. - FY2020ReframedAnnual report
「Free cash flow, the sum of cash flow from operating activities and cash flow from investing activities, was ¥1,482 million, compared with ¥49 million in the previous consolidated fiscal year.」
In addition to the usual seasonal fluctuations in work-in-progress costs and cash collections, the company highlighted the generation of ¥1,482 million in free cash flow for the full year as the central factor in its cash position. - FY2020-Q3ReframedAnnual report
「Current assets included increases of ¥1,618 million in cash and deposits and ¥923 million in work-in-progress costs. This was because revenue from the Group's core general construction consulting business is concentrated in March, the fiscal year-end for its main customers, government agencies, and cash collections are therefore concentrated during the same period, increasing cash and deposits.」
In addition to the increase in work-in-progress costs associated with the concentration of government projects at fiscal year-end, the company explained that cash and deposits also increased by ¥1,618 million this time due to the concentration of collections at fiscal year-end. - FY2020-Q2ReframedAnnual report
「Operating activities used ¥3,177 million in cash, compared with a ¥3,466 million decrease in the same quarter of the previous year. This was mainly due to an increase of ¥2,052 million in inventories, among other factors.」
Cash used in operating activities declined because of the increase in inventories associated with the concentration of government projects at fiscal year-end, although the decrease was smaller than in the same period of the previous year. - FY2020-Q1ReframedAnnual report
「Current assets included a ¥3,153 million decrease in cash and deposits, mainly due to the payment of bonuses and taxes, and a ¥600 million increase in marketable securities, mainly due to new purchases of beneficial interests in trusts to invest surplus funds. Work-in-progress costs also increased by ¥1,004 million. This reflects the tendency for inventories to increase because revenue from the Group's core general construction consulting business is concentrated in March, the fiscal year-end for its main customers, government agencies.」
The disclosure continues to show a decrease in cash due to bonus and tax payments and an increase in work-in-progress costs resulting from the concentration of government projects at fiscal year-end. It also notes an increase in marketable securities from the investment of surplus funds. - FY2019-Q3ReframedAnnual report
「Current assets included increases of ¥843 million in cash and deposits and ¥1,231 million in work-in-progress costs. This was because revenue from the Group's core general construction consulting business is concentrated in March, the fiscal year-end for its main customers, government agencies, and cash collections are therefore concentrated during the same period, increasing cash and deposits.」
The explanation of the asset-side factors continues to focus on the concentration of cash collections and the increase in work-in-progress costs resulting from the concentration of government projects at fiscal year-end, while also showing the increase for the current quarter. - FY2019-Q2ReframedAnnual report
「Operating activities used ¥3,466 million in cash, compared with a ¥700 million decrease in the same quarter of the previous year. This was mainly due to an increase of ¥2,005 million in inventories, among other factors.」
Against the backdrop of increased inventories, including work-in-progress costs, resulting from the concentration of government projects at fiscal year-end, the cash used in operating activities increased from ¥2,765.735 million in the same period of the previous year to ¥3,466.49 million. - FY2019-Q1ReframedAnnual report
「Current assets included a ¥2,663 million decrease in cash and deposits, mainly due to the payment of bonuses and taxes, and an ¥899 million increase in work-in-progress costs. This reflects the tendency for inventories to increase because revenue from the Group's core general construction consulting business is concentrated in March, the fiscal year-end for its main customers, government agencies.」
The first quarter showed a decline in cash due to bonus and tax payments, together with an increase in work-in-progress costs resulting from the concentration of government projects at fiscal year-end. - FY2018ReframedAnnual report
「Operating activities generated ¥1,320 million in cash, an increase of ¥579 million in cash inflows from the previous consolidated fiscal year. This was mainly attributable to profit before income taxes of ¥799 million, depreciation and amortization of ¥261 million, and an increase of ¥162 million in advances received for work in progress, among other factors.」
The focus has shifted from the explanation of lower operating cash flow due to the quarterly increase in inventories to an annual cash increase of ¥1,320.405 million, driven mainly by profit, depreciation and amortization, and advances received for work in progress. - FY2018-Q3ReframedAnnual report
「Current assets included an increase of ¥1,358 million in cash and deposits and ¥300 million in marketable securities. This was because revenue from the Group's core general construction consulting business is concentrated in March, the fiscal year-end for its main customers, government agencies, and cash collections are therefore concentrated during the same period, increasing cash and deposits. In addition, work-in-progress costs increased by ¥671 million in line with the increase in the order backlog.」
The focus has shifted from the decline in operating cash flow in the second quarter to increased cash from the concentration of government project collections at fiscal year-end and higher work-in-progress costs accompanying the increase in the order backlog in the third quarter. - FY2018-Q2ReframedAnnual report
「Cash used in operating activities was ¥2,765 million, compared with ¥2,860 million used in the same quarter of the previous year. This was mainly due to a ¥1,927 million increase in inventories.」
The disclosure reiterates that operating cash flow declined by ¥2,765.735 million in the second quarter due to an increase in inventories against the backdrop of year-end concentration in government projects. - FY2018-Q1ReframedAnnual report
「At the end of the current first-quarter consolidated accounting period, total assets were ¥15.650 billion, a decrease of ¥1,242 million from the previous consolidated fiscal year. Current assets included a ¥2,588 million decrease in cash and deposits due to bonus and tax payments, and a ¥905 million increase in costs for uncompleted contracts. This reflects the tendency for inventories to increase because sales in the group's core comprehensive construction consulting business are concentrated in March, the fiscal year-end for its principal government customers.」
The focus has shifted from the previous descriptions of changes in operating cash flow to first-quarter movements on the asset side, namely a decrease in cash due to bonus and tax payments and an increase in costs for uncompleted contracts associated with the year-end concentration of government projects. - FY2017ReframedAnnual report
「Cash generated from operating activities was ¥741 million, an increase of ¥98 million in inflows from the previous consolidated fiscal year. This was mainly due to profit before income taxes of ¥675 million and a ¥271 million increase in advances received for uncompleted contracts.」
The focus has shifted from the explanation of concentrated year-end receipts in the third quarter to an increase in full-year operating cash flow, mainly due to profit before income taxes and an increase in advances received for uncompleted contracts. - FY2017-Q3ReframedAnnual report
「Because sales in the group's core comprehensive construction consulting business are concentrated in March, the fiscal year-end for its principal government customers, receipts are also concentrated during the same period, resulting in an increase in cash and deposits.」
The focus has shifted from the decline in second-quarter operating cash flow to the third-quarter increase in cash and deposits of ¥1,314 million and in advances received for uncompleted contracts of ¥2,191 million, driven by the concentration of year-end receipts. - FY2017-Q2First statedAnnual report
「Cash used in operating activities was ¥2,860 million, compared with ¥2,884 million used in the same quarter of the previous year. This was mainly due to a ¥1,756 million increase in inventories.」
Against the backdrop of year-end concentration in government projects, inventories including costs for uncompleted contracts increased, resulting in a ¥2,860 million decline in operating cash flow in the second quarter.