Risk of collecting trade receivables due to customers' creditworthiness and country risk
First written in FY2017. 3 of 10 entries say "Worsened", first in FY2020-Q2. Latest entry: FY2025.
The whole theme swung hardest in 2026: 19 of 64 companies on the "Worse" side.
- FY2025WorsenedAnnual report
「Provision for doubtful accounts (non-current assets) 2,392 million yen 9,468 million yen」
The provision for doubtful accounts for non-current assets increased from ¥239.2 million in the previous fiscal year to ¥946.8 million, increasing the realized impact of customer credit and collection risks. - FY2024RestatedAnnual report
「To reduce collection risk, the company securitizes receivables, takes collateral, promotes lease transactions and obtains trade credit insurance. At the same time, it has equipped flat knitting machines with PMS (Password Management System) and established a mechanism to encourage payment by the due date.」
The company continues to address collection risk through receivables securitization, collateral, leasing, trade credit insurance, PMS and conservative provisioning. - FY2023MitigatedAnnual report
「To reduce collection risk, the company securitizes receivables, takes collateral, promotes lease transactions and obtains trade credit insurance. At the same time, it has equipped flat knitting machines with PMS (Password Management System) and established a mechanism to encourage payment by the due date.」
The company has implemented specific measures to address customer credit and receivables collection risk, including receivables securitization, collateral, leasing, trade credit insurance and PMS. - FY2022-Q2MitigatedAnnual report
「Outside operating income and expenses, the company recorded an ordinary loss of ¥84.4 million, mainly due to recognition of a reversal of the provision for doubtful accounts (ordinary loss of ¥313.5 million in the same quarter of the previous year).」
The company recorded a ¥18.4 million reversal of the provision for doubtful accounts, reducing the impact of customer credit and collection risks on earnings compared with through the previous quarter. - FY2022-Q1MitigatedAnnual report
「Outside operating income and expenses, the company recorded an ordinary loss of ¥15.4 million, mainly due to recognition of a reversal of the provision for doubtful accounts (ordinary loss of ¥141.4 million in the same quarter of the previous year).」
The company recorded a reversal of the provision for doubtful accounts, partially reducing the realized impact of customer credit and collection risks, which had increased in the same period of the previous year. - FY2021WorsenedAnnual report
「Provision for doubtful accounts (current assets) 4,816 million yen Provision for doubtful accounts (non-current assets) 1,448 million yen」
The provision for doubtful accounts totaled ¥626.4 million, up from ¥506.4 million in the previous fiscal year. The realized impact of customer credit and collection risks has increased. - FY2020-Q2WorsenedAnnual report
「In addition to the substantial decline in sales, the gross profit margin deteriorated due to lower selling prices and reduced plant operating rates, while the provision for doubtful accounts and development and research expenses increased, among other factors,」
The provision for doubtful accounts increased from ¥34.0 million in the same period of the previous year to ¥73.1 million, increasing the realized impact of customer credit and collection risks. - FY2019MaterialisedAnnual report
「In addition to the substantial decline in sales, operating profit was ¥463.8 million, down 68.9% year on year, due to the deterioration in the gross profit margin resulting from production adjustments and an increase in the provision for doubtful accounts in response to delayed payments by some customers.」
Delayed payments by some customers actually occurred, and the provision for doubtful accounts increased from ¥33.5 million in the previous fiscal year to ¥110.0 million. - FY2018RestatedAnnual report
「At the same time, the importance of appropriate credit management in consolidated operations has increased further, and changes in users' operating performance or creditworthiness, as well as the emergence of country risk, could affect the Group's operating results and financial position.」
The potential impact of customers' creditworthiness and country risk on receivables collection and operating results has been reconfirmed. - FY2017First statedAnnual report
「At the same time, the importance of appropriate credit management in consolidated operations has increased further, and changes in users' operating performance or creditworthiness, as well as the emergence of country risk, could affect the Group's operating results and financial position.」
The company states that, in connection with direct sales in markets such as China and Europe, customers' creditworthiness and country risk could affect receivables collection and operating results.