Accounts receivable collection risk resulting from deterioration in customers’ financial condition
First written in FY2017. 1 of 2 entries say "Mitigated", first in FY2018. Latest entry: FY2018.
The whole theme swung hardest in 2026: 19 of 65 companies on the "Worse" side.
- FY2018MitigatedAnnual report
「For trade receivables and lease receivables, the company assesses the suitability of transactions by understanding each business partner's operations and determining its creditworthiness in accordance with internal credit management regulations. After transactions begin, it manages due dates and outstanding balances for each business partner in accordance with internal receivables management regulations, continuously records and manages the progress of transactions, collections and trends in receivables balances, and actively gathers information on business partners' operations and developments to identify and mitigate concerns about collection at an early stage, including those arising from deterioration in financial condition.」
The company provided detailed disclosure of its systems for assessing creditworthiness, managing due dates and balances, and identifying and mitigating customer credit risk at an early stage through information gathering. - FY2017First statedAnnual report
「If the financial condition of customers from which the Group has significant trade receivables deteriorates and the Group is unable to receive payment on time, the Group's business, performance and financial condition may be adversely affected.」
The company disclosed separately the risk that customers' funding position and financial condition could deteriorate in transactions involving deferred payment, resulting in trade receivables becoming uncollectible.