Risk of earnings volatility from slow-moving inventory and inventory valuation
First written in FY2021. 5 of 9 entries say "Mitigated", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2018: 3 of 7 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Inventories ¥3,336 million Inventory valuation loss (△ indicates a reversal gain) △¥11 million」
Inventories decreased from ¥3,624 million to ¥3,336 million, while the valuation loss changed from ¥124 million to a reversal gain of ¥11 million. The quantitative impact of slow-moving inventory and valuation risk was mitigated. - FY2026-H1MitigatedAnnual report
「The main factors were an increase of ¥1,108 million in cash and deposits, offset by decreases of ¥1,048 million in notes and accounts receivable, ¥561 million in electronically recorded monetary claims, and ¥489 million in inventories.」
Inventories decreased by ¥489 million from the end of the previous consolidated fiscal year, partially mitigating the balance-sheet impact of slow-moving inventory and inventory valuation risk. - FY2025MitigatedAnnual report
「Inventories decreased from ¥4,087 million to ¥3,624 million, while the inventory valuation loss decreased from ¥142 million to ¥124 million.」
The inventory balance and valuation loss decreased from the previous fiscal year, partially mitigating the quantitative impact of slow-moving inventory and inventory valuation risk. - FY2025-H1Disclosed an increase in inventoryAnnual report
「The main factors were an increase of ¥899 million in cash and deposits and ¥405 million in inventory, offset by decreases of ¥1,040 million in notes and accounts receivable and ¥696 million in electronically recorded monetary claims.」
Inventory at the end of the interim period increased by ¥405 million from the end of the previous consolidated fiscal year. No additional inventory valuation loss was disclosed in this filing. - FY2024WorsenedAnnual report
「Inventory ¥4,087 million Inventory valuation loss ¥142 million」
The inventory balance was ¥4,087 million, and an inventory valuation loss of ¥142 million was recorded. The impact of slow-moving inventory and valuation risk was quantified. - FY2022RestatedAnnual report
「Inventories are measured at the lower of cost and net realisable value at the end of the consolidated fiscal year. However, for slow-moving inventory that has fallen outside the normal operating cycle, the carrying amount is systematically written down based on the period it has remained in inventory to reflect the decline in profitability.」
For inventory valuation risk, disclosed inventory of ¥3,287 million and an inventory valuation loss of ¥26 million, and continued the policy of writing down carrying value by period of inventory retention based on past results. - FY2021First statedAnnual report
「Inventory recognised on the consolidated balance sheet amounted to ¥3,378 million. Although regular write-downs of carrying value are based on past sales, usage and disposal results, material changes in the level of slow-moving inventory during the following consolidated fiscal year compared with past results could materially affect the consolidated financial statements.」
Disclosed the inventory valuation method and the potential impact on earnings of future changes in slow-moving inventory as a new risk item. Recorded an inventory valuation loss of ¥211 million during the fiscal year.