Risk of inventory obsolescence and write-downs
First written in FY2024. 2 of 4 entries say "Worsened", first in FY2025. Latest entry: 2026-08-07.
The whole theme swung hardest in 2022: 13 of 37 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- 2026-08-07MitigatedEarnings presentation
「< Inventory write-downs > Previous period: write-down -22 → Current period: write-down +4 Decrease in write-downs +26」
In the first quarter, the impact of inventory write-downs improved from negative ¥2.2 billion in the same period of the previous year to positive ¥0.4 billion, indicating temporary easing of the earnings pressure from write-downs. The disclosure did not state that the risk had been eliminated. - FY2026WorsenedAnnual report
「Inventories (before inventory write-downs) were ¥597,026 million, inventory write-downs were ¥90,327 million, and inventories (amount recognized on the consolidated balance sheet) were ¥506,698 million.」
Inventory write-downs increased from ¥89,244 million in the previous fiscal year to ¥90,327 million, and the valuation and obsolescence risks associated with maintaining high inventory levels remained significant. Write-downs included in cost of sales for the current fiscal year resulted in a reversal gain of ¥4,123 million. - FY2025WorsenedAnnual report
「Inventories (before inventory write-downs) were ¥578,906 million, inventory write-downs were ¥89,244 million, and inventories (amount recognized on the consolidated balance sheet) were ¥489,661 million.」
Inventory write-downs increased from ¥79,671 million in the previous fiscal year to ¥89,244 million, and the valuation and obsolescence risks associated with maintaining high inventory levels expanded. Write-downs included in cost of sales for the current fiscal year were ¥10,359 million. - FY2024First statedAnnual report
「Inventories (before inventory write-downs) were ¥599,230 million, inventory write-downs were ¥79,671 million, and inventories (amount recognized on the consolidated balance sheet) were ¥519,558 million.」
The company described in detail for the first time the valuation and obsolescence risks associated with its policy of strategically maintaining high inventory levels as a critical accounting estimate. In fiscal 2024, it recorded inventory write-downs of ¥79,671 million, including ¥24,073 million in write-downs included in cost of sales, demonstrating that valuation reductions had occurred in practice.