Risk of inventory write-downs and higher inventories due to declining demand
First written in FY2020. 6 of 13 entries say "Worsened", first in FY2022. Latest entry: FY2026.
Ckd moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 13 of 37 companies on the "Worse" side.
7 other companies' latest entry also says "Other".
- FY2026Total valuation losses increased, while the impact on operating profit narrowedAnnual report
「Total 41,903 △2,592 39,311」
The equipment segment's inventory balance before write-downs was ¥41,903 million, with write-downs of ¥2,592 million, bringing total write-downs above the previous fiscal year's ¥2,490 million. Meanwhile, the impact on operating profit for the current fiscal year was ¥100 million, down from ¥304 million in the previous fiscal year. - 2026-05-15WorsenedEarnings
「This was due to a ¥1,866 million increase in inventories, a ¥2,045 million decrease in trade payables, and a ¥7,343 million decrease in cash resulting from income tax payments.」
Inventories increased, and cash flows from operating activities declined 22.6% year on year. The valuation loss also increased from ¥2,490 million to ¥2,592 million. - FY2026-H1RestatedAnnual report
「Change in inventories (△ indicates an increase) 4,320 △ 666」
Inventories decreased by ¥666 million during the six-month consolidated accounting period, reaffirming that inventory growth amid declining demand has paused. - FY2025Inventory reductions partly mitigated inventory riskAnnual report
「Merchandise and finished goods decreased by ¥3,397 million, and raw materials and supplies decreased by ¥5,724 million.」
Finished goods, products, raw materials and supplies decreased from the end of the previous fiscal year, indicating a pause in inventory growth amid declining demand. Meanwhile, the amount of inventory write-downs increased. - FY2025-H1MitigatedAnnual report
「This was mainly because cash and deposits decreased by ¥180 million, merchandise and finished goods by ¥2,634 million, work in process by ¥292 million, raw materials and supplies by ¥1,530 million, consumption taxes receivable included in other current assets by ¥596 million, intangible fixed assets by ¥226 million, and investment securities included in investments and other assets by ¥2,680 million, while notes and accounts receivable and contract assets increased by ¥3,860 million and electronically recorded monetary claims increased by ¥5,122 million.」
Merchandise and finished goods, work in process, and raw materials and supplies declined from the previous fiscal year-end, indicating a pause in the rise in inventories amid declining demand. - FY2024WorsenedAnnual report
「Merchandise and finished goods\n¥7,212 million\n(¥488 million)\n¥6,723 million\nWork in process\n¥557 million\n—\n¥557 million\nRaw materials and supplies\n¥38,738 million\n(¥1,688 million)\n¥37,050 million\nTotal\n¥46,508 million\n(¥2,176 million)\n¥44,332 million」
Equipment-segment inventories before valuation were ¥46,508 million and valuation losses were ¥2,176 million, up from ¥44,070 million and ¥1,765 million, respectively, in the previous fiscal year. The possibility of additional valuation losses if market conditions deteriorate continues to be disclosed. - FY2024-Q3Inventories continue to increaseAnnual report
「This was mainly attributable to increases in cash and deposits, inventories and property, plant and equipment, despite a decrease in trade receivables.」
Inventories increased from ¥55,381 million at the end of the previous consolidated fiscal year to ¥61,457 million, with inventories continuing to rise amid declining demand. - FY2024-Q2WorsenedAnnual report
「Semiconductor capital investment remained restrained, as inventory adjustments were prolonged against a backdrop of a cyclical downturn in semiconductor memory.」
With restraints on semiconductor capital investment and prolonged inventory adjustments continuing, inventories increased by ¥4,734 million during the cumulative second-quarter period. - FY2024-Q1WorsenedAnnual report
「In addition, semiconductor capital investment remained restrained, as inventory adjustments were prolonged against a backdrop of a cyclical downturn in semiconductor memory.」
With weak demand for semiconductor memory and prolonged inventory adjustments continuing, inventories at the end of the first quarter also increased from the previous fiscal year-end. - FY2023WorsenedAnnual report
「Inventories in the equipment segment of our company and 喜開理 (中国) 有限公司 comprised ¥6,592 million in merchandise and finished goods, ¥537 million in work in process, and ¥36,940 million in raw materials and supplies, for a total of ¥44,070 million, with valuation losses of ¥1,765 million.」
Equipment-segment inventories before valuation increased from ¥28,898 million in the previous fiscal year to ¥44,070 million, while valuation losses increased from ¥1,643 million to ¥1,765 million. Semiconductor inventory adjustments and export restrictions to China were added as estimation uncertainties. - FY2022WorsenedAnnual report
「Valuation losses on inventories in our equipment business are calculated by combining an automated system that compares inventories with their net realizable value in the market and applies valuation loss rates based on factors such as the length of time inventory has been held, together with a method that calculates valuation losses for inventories with extended turnover periods after assessing historical issuance results and expected future sales.」
Equipment-segment inventories before valuation were ¥28,898 million and valuation losses were ¥1,643 million, up from ¥22,956 million and ¥1,371 million, respectively, in the previous fiscal year. The impact on operating profit was also disclosed as ¥271 million. - FY2021Specified inventory balances before valuation allowances and the risk of valuation lossesAnnual report
「If the assumptions used in these estimates need to be revised owing to deteriorating market conditions for semiconductors, automobiles, machine tools and other products, significant valuation losses may arise in the following consolidated fiscal year on inventories judged unlikely to be sold.」
For inventories in the equipment segment, recorded a valuation loss of ¥1,371 million against ¥22,956 million before valuation, specifying the possibility of significant additional valuation losses from the following fiscal year onward if market conditions deteriorate. - FY2020First statedAnnual report
「If order volumes decline beyond expectations, the inventories secured in advance may turn over more slowly, and the resulting increase in inventories could affect the Group’s operating results and financial position.」
Described as a separate risk the inventory buildup and valuation impact during periods of declining demand associated with securing a certain level of inventory to meet market needs.