Risk of Slow-Moving Inventory and Work in Process and Related Write-Downs
First written in FY2020. 6 of 15 entries say "Worsened", first in FY2024-Q2. Latest entry: FY2026.
inspec moved to the "Worse" side of this theme in 2025, 3 years after the typical company in this theme (2022).
The whole theme swung hardest in 2018: 3 of 7 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Work in process amounted to ¥616.815 million at fiscal year-end. The write-down due to reduced profitability included in cost of sales was ¥0 for work in process.」
Work in process decreased from ¥1,032 million at the immediately preceding interim period-end to ¥616 million at fiscal year-end, and the write-down of work in process for the current fiscal year was ¥0. - FY2026-H1WorsenedAnnual report
「At the end of the interim accounting period, total assets increased by ¥280 million from the end of the previous fiscal year to ¥3,280 million. This was mainly due to decreases of ¥113 million in cash and deposits, ¥279 million in accounts receivable and contract assets, and ¥204 million in electronically recorded monetary claims, together with increases of ¥624 million in work in process and ¥177 million in construction in progress.」
Work in process increased by ¥624 million from the end of the previous fiscal year, from ¥407 million to ¥1,032 million. Following the decline seen in the interim period of the previous fiscal year, the balance related to the risk of work-in-process accumulation and write-downs increased substantially again as of the interim period-end. - FY2025-H1MitigatedAnnual report
「This was mainly due to a decrease of ¥87 million in cash and deposits, an increase of ¥84 million in electronically recorded monetary claims, and a decrease of ¥154 million in work in process.」
Work in process decreased from ¥867 million at the end of the previous fiscal year by ¥154 million to ¥713 million, reducing the balance related to the risk of work-in-process accumulation and write-downs as of the interim period-end. - FY2024WorsenedAnnual report
「The amounts of inventory write-downs due to reduced profitability included in cost of sales are as follows: ¥452 thousand in the previous fiscal year and ¥39.775 million in the current fiscal year.」
The work-in-process balance increased from ¥626 million to ¥867 million, while the write-down due to reduced profitability increased from ¥452 thousand to ¥39.775 million. - FY2024-Q3WorsenedAnnual report
「At the end of the third quarter of the current fiscal year, total assets decreased by ¥355 million from the end of the previous fiscal year to ¥3,622 million. This was mainly due to decreases of ¥134 million in cash and deposits, ¥675 million in notes and accounts receivable and contract assets, and ¥340 million in electronically recorded monetary claims, together with an increase of ¥800 million in work in process.」
Work in process increased by ¥800 million from the end of the previous fiscal year, bringing the balance to ¥1,426 million. Although no write-down was indicated in the current quarter, the balance related to the risk of work-in-process accumulation and write-downs continued to increase. - FY2024-Q2WorsenedAnnual report
「At the end of the second quarter of the current fiscal year, total assets decreased by ¥533 million from the end of the previous fiscal year to ¥3,444 million. This was mainly due to decreases of ¥927 million in notes and accounts receivable and contract assets and ¥353 million in electronically recorded monetary claims, together with an increase of ¥742 million in work in process.」
Work in process increased by ¥742 million from the end of the previous fiscal year, bringing the balance to ¥1,368 million. Although no write-down was indicated, the balance related to the risk of work-in-process accumulation and write-downs increased substantially further. - FY2024-Q1Substantial increase in the work-in-process balanceAnnual report
「At the end of the first quarter of the current fiscal year, total assets decreased by ¥263 million from the end of the previous fiscal year to ¥3,714 million. This was mainly due to decreases of ¥422 million in notes and accounts receivable and contract assets and ¥305 million in electronically recorded monetary claims, together with an increase of ¥538 million in work in process.」
Work in process increased by ¥538 million from the end of the previous fiscal year, from ¥626 million to ¥1,164 million. Although no write-down was indicated, the balance related to the risk of work-in-process accumulation and write-downs increased substantially. - FY2023Slight decrease in work-in-process balance, increase in write-downsAnnual report
「The amounts of inventory write-downs due to reduced profitability included in cost of sales are as follows: ¥452 thousand.」
The work-in-process balance edged down from ¥639.517 million to ¥626.064 million, while the write-down due to reduced profitability increased from ¥125 thousand in the previous fiscal year to ¥452 thousand. - FY2023-Q3Continued increase in the work-in-process balanceAnnual report
「This was mainly due to a decrease of ¥133 million in cash and deposits, an increase of ¥254 million in notes and accounts receivable and contract assets, a decrease of ¥107 million in electronically recorded monetary claims, an increase of ¥357 million in work in process, and an increase of ¥99 million in construction in progress.」
Work in process increased by ¥357 million from the end of the previous fiscal year to ¥997 million. Although no write-down was indicated, the balance related to the risk of work-in-process accumulation and write-downs continued to increase. - FY2023-Q2Increase in work-in-process balanceAnnual report
「This was mainly due to decreases of ¥241 million in notes and accounts receivable and contract assets and ¥169 million in electronically recorded monetary claims, together with an increase of ¥554 million in work in process.」
Work in process increased by ¥554 million. This does not indicate that a write-down was recognized in the current quarter, but the disclosed increase in the balance is related to the risk of work-in-process accumulation and write-downs. - FY2022MitigatedAnnual report
「The amounts of inventory write-downs due to reduced profitability included in cost of sales are as follows: ¥125 thousand.」
The write-down due to reduced profitability of work in process and inventory was ¥125 thousand, a substantial decrease from ¥74.222 million in the previous fiscal year. - FY2021MaterialisedAnnual report
「The amounts of inventory write-downs due to reduced profitability included in cost of sales are as follows.」
The inventory write-down due to reduced profitability amounted to ¥74.222 million for the current fiscal year, indicating that the risk concerning the realizability of orders for items produced in anticipation of demand and work in process had materialized. - FY2020First statedAnnual report
「However, if the prospects for future use change, additional write-downs may be required. Work in process is also sometimes produced in anticipation of orders, and if the expected orders are not received, work in process may accumulate and a write-down may be required.」
The risk of additional write-downs arising from changes in the future usability of components and the accumulation of work in process produced in anticipation of orders has been explicitly identified for the first time as a significant accounting estimate.