Inventory Holdings for Short Lead Times and Parts Supply, and the Risk of Excess Inventory
First written in FY2016. 8 of 22 entries say "Worsened", first in FY2021. Latest entry: 2026-08-06.
Nissei Asb Machine moved to the "Worse" side of this theme in 2021, 1 year before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 13 of 37 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2026-H1WorsenedAnnual report
「Although higher trade receivables and inventories accompanying increases in orders and net sales reduced cash, operating cash flow was an inflow of ¥4,566 million (same period of the previous year: inflow of ¥4,843 million), supported by recognition of interim net income before income taxes and other adjustments and an increase in contract liabilities, including advances received.」
Trade receivables and inventories increased as orders and sales grew, creating a working capital burden. Operating cash flow also decreased year on year. - FY2025MitigatedAnnual report
「Merchandise and finished goods 2,604 2,643 Work in process 8,012 7,542 Raw materials and supplies 7,561 7,528」
Work in process and raw materials and supplies decreased from the end of the previous fiscal year, and total inventories declined despite the increase in merchandise and finished goods. The inventory burden decreased. - FY2025-H1MitigatedAnnual report
「Change in inventories (△ indicates an increase) △435 605」
The increase in inventories in the same period of the previous year turned into a decrease of ¥605 million in the current interim period, easing the working capital burden from holding inventory. - FY2024MitigatedAnnual report
「Merchandise and finished goods 2,499 2,604 Work in process 7,752 8,012 Raw materials and supplies 8,284 7,561」
While merchandise and finished goods and work in process increased, raw materials and supplies decreased, and total inventories declined from ¥18,535 million at the end of the previous fiscal year to ¥18,177 million. - FY2024-Q2Increase in finished goods and work in process, decrease in raw materialsAnnual report
「Merchandise and finished goods 2,499 3,172 Work in process 7,752 8,369 Raw materials and supplies 8,284 7,644」
Compared with the end of the previous consolidated fiscal year, merchandise and finished goods and work in process increased, while raw materials and supplies decreased. Total inventories increased. - FY2023MitigatedAnnual report
「As working capital decreased due to lower inventories and higher accounts payable, cash provided by operating activities amounted to ¥7,885 million (previous fiscal year: ¥3,454 million provided).」
The working capital burden declined due to lower inventories, and operating cash flow improved from ¥3,454 million in the previous fiscal year to ¥7,885 million. - FY2023-Q3MitigatedAnnual report
「Merchandise and finished goods 2,471 2,459 Work in process 9,135 8,717 Raw materials and supplies 9,389 9,272」
Compared with the end of the previous consolidated fiscal year, balances of merchandise and finished goods, work in process, and raw materials and supplies all decreased, reducing the burden associated with holding inventory. - FY2023-Q2MitigatedAnnual report
「In addition to recording profit before income taxes, cash flow from operating activities amounted to ¥4,768 million provided, owing to factors including decreases in working capital resulting from lower trade receivables and inventories and higher accounts payable (same period of the previous year: ¥728 million used).」
The working capital burden declined due to factors including lower inventories, and operating cash flow improved from ¥728 million used in the same period of the previous year to ¥4,768 million provided. - FY2022WorsenedAnnual report
「This was mainly attributable to an increase in inventories.」
Current assets increased by ¥1,978 million from the end of the previous fiscal year. Work in process increased from ¥7,690 million to ¥9,135 million, while raw materials and supplies increased from ¥7,749 million to ¥9,389 million. The risks associated with holding inventory continued and expanded. - FY2022-Q3WorsenedAnnual report
「Work in process 7,690 8,459 Raw materials and supplies 7,749 9,615」
Compared with the end of the previous consolidated fiscal year, balances of work in process and raw materials and supplies increased. This indicated an increase in inventory risk associated with holding inventory to accommodate short lead times and other requirements. - FY2022-Q2WorsenedAnnual report
「Although profit before income taxes was recorded, cash used in operating activities amounted to ¥728 million due to increases in working capital resulting from higher inventories and lower accounts payable, as well as income tax payments (same period of the previous year: ¥3,938 million provided).」
Due to the increase in working capital resulting from higher inventories and income tax payments, operating cash flow shifted from ¥3,938 million provided in the same period of the previous year to ¥728 million used. - FY2022-Q1WorsenedAnnual report
「Work in process 7,690 8,355 Raw materials and supplies 7,749 8,663」
Compared with the end of the previous consolidated fiscal year, balances of work in process and raw materials and supplies increased. This indicated an increase in inventory risk associated with holding inventory to accommodate short lead times and other requirements. - FY2021WorsenedAnnual report
「As a result of increases in cash from recording profit before income taxes and increases in working capital due to higher inventories, cash provided by operating activities was ¥5,580 million (previous fiscal year: ¥8,690 million provided).」
The increase in inventories increased working capital, and operating cash flow decreased from ¥8,690 million in the previous fiscal year to ¥5,580 million. Merchandise and finished goods, work in process, and raw materials and supplies also increased from the end of the previous fiscal year. - FY2021-Q3Increase in inventories and no quarterly cash flow statement preparedAnnual report
「Merchandise and finished goods 1,772 2,111 Work in process 5,874 7,139 Raw materials and supplies 6,176 8,158」
Compared with the end of the previous consolidated fiscal year, balances of merchandise and finished goods, work in process, and raw materials and supplies all increased. No quarterly consolidated statement of cash flows was prepared for the 9-month period of the current consolidated fiscal year. - FY2019RestatedAnnual report
「Our group holds a certain quantity of inventory to respond promptly to customer needs such as short-lead-time shipments and the supply of maintenance parts, as well as for application development and sales promotion.」
The disclosure continued to cover inventory held for short lead times and parts supply, and the risks of excess inventory, valuation losses and disposal losses resulting from market changes. - FY2017RestatedAnnual report
「Our group holds a certain quantity of inventory to respond promptly to customer needs such as short-lead-time shipments and the supply of maintenance parts, as well as for application development and sales promotion. If significant changes in the market or other events were to result in excess inventory and require us to record inventory valuation or disposal losses on inventory held for these purposes, business performance could be adversely affected.」
The risks associated with inventory held for short lead times and parts supply, including valuation and disposal losses arising from excess inventory, continued. - FY2016First statedAnnual report
「Our group holds a certain quantity of inventory to respond promptly to customer needs such as short-lead-time shipments and the supply of maintenance parts, as well as for application development and sales promotion. If significant changes in the market or other events were to result in excess inventory and require us to record inventory valuation or disposal losses on inventory held for these purposes, business performance could be adversely affected.」
Inventory held for customer service and sales promotion was identified as a risk that could lead to excess inventory, valuation losses and disposal losses.