Cash Generation Through CCC Improvement, Advance Payments and Shorter Bill Payment Terms
First written in FY2020. 7 of 13 entries say "Advanced", first in FY2021. Latest entry: 2026-09-11.
The whole theme swung hardest in 2024: 3 of 13 companies on the "Worse" side.
10 other companies' latest entry also says "Restated".
- FY2026AdvancedAnnual report
「This was due to a cash inflow of ¥1.184 billion from an increase in contract liabilities, despite a cash outflow of ¥2.123 billion from an increase in inventories.」
The contract liabilities balance increased from ¥5.092 billion at the end of the previous fiscal year to ¥6.311 billion, and the increase also appeared as a ¥1.184 billion source of operating cash flow. Meanwhile, inventories increased in line with growth in the order backlog. - FY2026-H1AdvancedAnnual report
「This was mainly due to the recognition of interim net income before taxes of ¥951 million and depreciation of ¥595 million, cash inflows of ¥3.755 billion from a decrease in trade receivables and ¥1.175 billion from an increase in contract liabilities, offset by cash outflows of ¥2.666 billion from an increase in inventories, ¥705 million from a decrease in trade payables, and ¥570 million in income tax payments.」
Contract liabilities related to cash conversion cycle improvement increased by ¥1.150 billion from the end of the previous consolidated fiscal year to ¥6.243 billion, and the increase also appeared as a ¥1.175 billion source of cash flow from operating activities. - FY2025-H1AdvancedAnnual report
「Liabilities totaled ¥30.607 billion, an increase of ¥1.464 billion from the end of the previous consolidated fiscal year. The main factors were increases of ¥2.247 billion in contract liabilities and ¥368 million in long-term borrowings, as well as a decrease of ¥318 million in income taxes payable, among other factors.」
Contract liabilities related to cash conversion cycle improvement increased by ¥2.247 billion from the end of the previous consolidated fiscal year, bringing the contract liabilities balance to ¥6.873 billion. - FY2024-Q3AdvancedAnnual report
「Liabilities totaled ¥27.603 billion, an increase of ¥7.079 billion from the end of the previous consolidated fiscal year. The main factors were increases of ¥2.521 billion in contract liabilities, ¥2.414 billion in long-term borrowings, and ¥740 million in short-term borrowings, as well as a decrease of ¥240 million in provision for bonuses, among other factors.」
Contract liabilities related to cash conversion cycle improvement increased by ¥2.521 billion from the end of the previous consolidated fiscal year to ¥6.234 billion. Advance payments and contract liabilities continued to accumulate from the previous quarter. - FY2024-Q2AdvancedAnnual report
「Liabilities totaled ¥24.754 billion, an increase of ¥4.231 billion from the end of the previous consolidated fiscal year. The main factors were increases of ¥2.503 billion in long-term borrowings, ¥1.691 billion in contract liabilities, and ¥268 million in electronically recorded obligations, as well as a decrease of ¥203 million in notes and accounts payable, among other factors.」
Contract liabilities related to cash conversion cycle improvement increased by ¥1.691 billion from the end of the previous consolidated fiscal year to ¥5.405 billion. - FY2024-Q1Increase in Contract LiabilitiesAnnual report
「Liabilities totaled ¥21.045 billion, an increase of ¥521 million from the end of the previous consolidated fiscal year. The main factors were increases of ¥736 million in long-term borrowings, ¥614 million in contract liabilities, and ¥380 million in accounts payable, as well as decreases of ¥746 million in notes and accounts payable, ¥261 million in provision for bonuses, and ¥190 million in income taxes payable, among other factors.」
Contract liabilities related to cash conversion cycle improvement increased by ¥614 million from the end of the previous fiscal year to ¥4.328 billion. - FY2023Policy of reducing contract liabilities and inventoriesAnnual report
「The company will improve the cash conversion cycle by generally collecting advance payments when plant orders are received and reducing inventories through measures such as standardizing asphalt plants.」
The cash conversion cycle improvement measures have been expanded from collecting advance payments when orders are received to reducing inventories through standardization of asphalt plants. Contract liabilities at the end of the period declined from ¥4.405 billion at the end of the previous fiscal year to ¥3.713 billion. - FY2023-Q3Continued increase in advance payments and contract liabilitiesAnnual report
「Liabilities totaled ¥21.476 billion, an increase of ¥1.447 billion from the end of the previous consolidated fiscal year. The main factors were increases of ¥896 million in long-term borrowings, ¥751 million in short-term borrowings, and ¥745 million in contract liabilities, as well as decreases of ¥327 million in income taxes payable, ¥309 million in provision for bonuses, and ¥305 million in notes and accounts payable, among other factors.」
Contract liabilities related to the cash conversion cycle improvement measures increased by ¥745 million from the end of the previous consolidated fiscal year to ¥5.150 billion. - FY2022-Q3Increase in advance payments and contract liabilitiesAnnual report
「Liabilities totaled ¥18.173 billion, an increase of ¥927 million from the end of the previous consolidated fiscal year. The main factors were increases of ¥885 million in contract liabilities (advance payments in the previous consolidated fiscal year), ¥696 million in factoring payables, and ¥628 million in short-term borrowings, as well as decreases of ¥542 million in income taxes payable, ¥370 million in provision for bonuses, and ¥257 million in accounts payable, among other factors.」
Contract liabilities related to the cash conversion cycle improvement measures increased by ¥885 million from the end of the previous consolidated fiscal year. - FY2021AdvancedAnnual report
「The company believes the cash conversion cycle can be improved by generally collecting advance payments when plant orders are received and eliminating bill terms exceeding 120 days.」
The company continues to cite collecting advance payments when orders are received and eliminating bill terms exceeding 120 days as measures to improve the cash conversion cycle. Advance payments increased by ¥1.281 billion during the fiscal year. - FY2020First statedAnnual report
「The company believes the cash conversion cycle can be improved by generally collecting advance payments when plant orders are received and eliminating bill terms exceeding 120 days.」
Specific measures to improve the cash conversion cycle include collecting advance payments when orders are received and eliminating bill terms exceeding 120 days.