Strengthening the Financial Base by Improving the Cash Conversion Cycle
First written in FY2021-Q3. 2 of 19 entries say "Reframed", first in FY2022. Latest entry: 2026-08-07.
The whole theme swung hardest in 2024: 3 of 13 companies on the "Worse" side.
4 other companies' latest entry also says "Other".
- 2026-08-07OtherEarnings presentation
「The key CCC* metric rose as inventories increased, mainly due to efforts to strengthen the stable supply system for expanding sales of new products (end-March 2025: 4.28 months → end-March 2026: 4.67 months → end-June 2026: 5.48 months).」
CCC rose from 4.67 months at the end of March 2026 to 5.48 months at the end of June as the company strengthened its stable supply system for new products. - FY2026Higher inventories and negative free cash flowAnnual report
「The Mimaki Group's free cash flow was negative ¥766 million. This was due to a ¥3,238 million decrease in cash flow from operating activities from the previous consolidated fiscal year, despite an increase in income before income taxes, mainly because of a decrease in trade receivables and an increase in inventories, as well as a ¥2,951 million increase in cash outflows from investing activities resulting from active investment, including the acquisition of property, plant and equipment, to achieve the targets set out in the medium- to long-term growth strategy, “Mimaki Innovation 30.”」
While targeting a shorter CCC and maximum operating cash flow, inventory increased by ¥1,795 million, and combined with active investment, this resulted in negative free cash flow of ¥766 million. - FY2026-H1Lower operating cash flow due to higher inventoryAnnual report
「Funds generated from operating activities totaled ¥1,720 million, down ¥2,787 million year on year.」
While targeting an improvement in the cash conversion cycle (CCC), inventory increased by ¥2,387 million during the interim consolidated accounting period, and cash flow from operating activities decreased by ¥2,787 million year on year. - FY2025ReframedAnnual report
「Through the company-wide inventory management project, we will optimize inventory across the entire supply chain, particularly by eliminating slow-moving and obsolete inventory, establish inventory management that controls appropriate inventory levels based on lead times, and advance the shortening of the CCC.」
The Company has translated its CCC-shortening measures into specific initiatives: a company-wide inventory management project, reductions in slow-moving and obsolete inventory, and appropriate inventory management based on lead times. - FY2025-H1Higher operating cash flow and renewed inventory build-upAnnual report
「Cash provided by operating activities amounted to ¥4,507 million, an increase of ¥737 million from the same period of the previous year. This was attributable to factors including interim pretax profit of ¥4,328 million.」
Operating cash flow amounted to ¥4,507 million, an increase of ¥737 million from the same period of the previous year. Meanwhile, inventories increased by ¥1,088 million, indicating that progress in CCC improvement was accompanied by both higher operating cash flow and higher inventories. - FY2024AdvancedAnnual report
「From the current fiscal year onward, we will pursue not only revenue growth but also the continued generation of high profits, implement various measures to reduce inventories and maximize operating cash flow, while actively making the investments necessary for future growth,」
Regarding the shortening of the CCC and strengthening of the financial foundation, inventories decreased by ¥4,094 million from the end of the previous fiscal year, while the Company secured operating cash flow of ¥9,563 million and free cash flow of ¥6,967 million. The improvement in financial efficiency has materialized as cash generation. - FY2024-Q2AdvancedAnnual report
「Cash generated from operating activities was ¥3,770 million, compared with ¥767 million used in the same period of the previous year. This was due to pretax quarterly net income of ¥2,016 million, among other factors.」
While targeting CCC improvement and strengthening the financial foundation, operating cash flow for the cumulative second quarter amounted to ¥3,770 million provided, improving from ¥767 million used in the same period of the previous year. - FY2024-Q1Increase in inventories due to sales falling short of planAnnual report
「This was due, among other factors, to increases in merchandise and finished goods and in raw materials and supplies because sales did not grow as planned, as well as an increase in cash and deposits.」
While targeting CCC improvement, merchandise and finished goods, and raw materials and supplies increased because sales did not grow as planned. - FY2023-Q3Continued inventory build-up to support sales expansionAnnual report
「At the end of the third quarter of the current consolidated fiscal year, total assets had increased by ¥7,532 million from the end of the previous consolidated fiscal year to ¥68,390 million. Current assets had increased by ¥6,230 million from the end of the previous consolidated fiscal year to ¥53,725 million. This was due, among other factors, to an increase in cash and deposits and an increase in merchandise and finished goods resulting from inventory-procurement operations undertaken in response to longer transport lead times and the expansion of sales.」
While targeting CCC improvement, the Company continued to secure inventory in response to sales expansion and longer transportation lead times, resulting in an increase in current assets. - FY2023-Q2Continued inventory build-up and use of operating cashAnnual report
「Cash used in operating activities amounted to ¥767 million, a decrease of ¥1,315 million from the same period of the previous year. This was attributable to factors including pretax quarterly profit of ¥1,768 million, an increase in inventories of ¥1,266 million, and income tax payments of ¥1,025 million.」
While targeting CCC improvement, the Company used ¥767 million in operating activities as inventories increased by ¥1,266 million due to securing inventory amid supply constraints and efforts to avoid lost sales opportunities. - FY2023-Q1Continued inventory build-up amid supply constraintsAnnual report
「This was due, among other factors, to increases in cash and deposits and in merchandise and finished goods and raw materials and supplies as a result of the effects of longer transport lead times and inventory-procurement operations implemented in response to shortages of parts and raw materials to avoid lost sales opportunities.」
Even under the policy of shortening the CCC and strengthening the financial foundation, the Company continued to secure inventory by prioritizing supply constraints and avoiding lost sales opportunities, resulting in increases in merchandise and finished goods, and raw materials and supplies. - FY2022ReframedAnnual report
「During the current fiscal year, we prioritized procurement and the avoidance of lost opportunities, and decided to focus CCC management on monitoring the receivables collection period, particularly overdue receivables. In parallel, we will develop rules for appropriate inventory levels based on lead times in preparation for the resolution of component shortages.」
Regarding the policy of shortening the CCC and strengthening the financial foundation, the Company has shifted its focus under shortages of components and raw materials toward procurement and avoiding lost opportunities, management of trade receivables, and developing rules for appropriate future inventory levels. - FY2022-Q3Continued Inventory Build-UpAnnual report
「This was mainly due to increases in raw materials and supplies, and merchandise and finished goods, as the Company actively procured and secured components and other items.」
As a result of actively procuring and securing components and other items in preparation for supply constraints, inventories of raw materials, finished goods, and other items increased. Despite the policy of shortening the CCC, securing inventory was a factor behind the increase in cash and assets during the quarter. - FY2022-Q2Operating cash used to secure inventoryAnnual report
「Cash used in operating activities amounted to ¥2,083 million, compared with ¥1,365 million provided in the same period of the previous year. This was attributable to factors including a pretax quarterly profit of ¥1,732 million, an increase in inventories of ¥2,853 million, and a decrease in trade payables of ¥1,270 million.」
Inventories increased by ¥2,853 million as the Company prepared for shortages of components and raw materials, resulting in ¥2,083 million of cash being used in operating activities. Despite the policy of improving the CCC, securing inventory was a source of cash outflow during the quarter. - FY2021RestatedAnnual report
「We will improve capital efficiency and strengthen our financial foundation by shortening the CCC (cash conversion cycle), while working to maximize free cash flow.」
The Company has continued its policy of improving capital efficiency and strengthening the financial foundation by shortening the CCC, and stated that it secured free cash flow of ¥6,650 million in the current fiscal year. - FY2021-Q3First statedAnnual report
「③ Strengthen the financial foundation by improving the cash conversion cycle to ensure the ability to respond to changes in the business environment」
As a measure under Mimaki V10, the Company stated for the first time its policy of strengthening the financial foundation by improving the cash conversion cycle to enhance its ability to respond to changes in the business environment.