Inventory Valuation Risk Arising from Declining Demand and Changes in Product Life Cycles
First written in FY2020. 2 of 4 entries say "Materialised", first in FY2020. Latest entry: FY2025.
Giken moved to the "Worse" side of this theme in 2020, 4 years before the typical company in this theme (2024).
The whole theme swung hardest in 2018: 11 of 38 companies on the "Worse" side.
24 other companies' latest entry also says "Other".
- FY2025Inventory carrying-value write-down: ¥524 millionAnnual report
「Write-down due to lower profitability of inventories held for ordinary sales purposes: Fiscal year under review, ¥524 million」
Regarding inventory valuation risk associated with lower demand and changes in product life cycles, an inventory carrying-value write-down of ¥524 million was recognised in the fiscal year under review as well. - FY2024WorsenedAnnual report
「Write-down due to lower profitability of inventories held for ordinary sales purposes: Fiscal year under review, ¥679 million」
Regarding inventory valuation risk associated with lower demand and changes in product life cycles, the carrying-value write-down increased from ¥229 million in the previous fiscal year to ¥679 million. - FY2023MaterialisedAnnual report
「Write-down due to lower profitability of inventories held for ordinary sales purposes: Fiscal year under review, ¥229 million」
Regarding inventory valuation risk associated with lower demand and changes in product life cycles, an inventory carrying-value write-down of ¥229 million was recognised in the fiscal year under review as well. - FY2020MaterialisedAnnual report
「If lower customer demand or changes in product life cycles caused by worsening market conditions result in lower inventory profitability, inventory holding periods or obsolescence, additional inventory valuation losses may need to be recognised in the future. Write-down due to lower profitability of inventories held for ordinary sales purposes: Fiscal year under review, ¥272 million」
The company independently disclosed for the first time the inventory valuation risk associated with lower customer demand and changes in product life cycles, and recognised a ¥272 million inventory carrying-value write-down in the fiscal year under review.