Inventory risk from fluctuations in the supply of parts and components and demand forecasting
First written in FY2017-Q3. 5 of 15 entries say "Materialised", first in FY2017. Latest entry: FY2026.
Sony Group moved to the "Worse" side of this theme in 2017, 9 years before the typical company in this theme (2026).
The whole theme swung hardest in 2023: 3 of 8 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Inventory write-downs amounted to ¥107,164 million and ¥111,993 million in fiscal 2024 and fiscal 2025, respectively.」
The inventory write-down increased from ¥107.164 billion to ¥111.993 billion, reflecting an increase in the amount of demand and inventory risk that materialized. - 2026-05-08WorsenedPresentation materials on financial results
「Smaller decrease in inventories」
The company cited the smaller decrease in inventories as a factor behind the year-on-year decline in operating cash flow in FY25. - FY2026-H1WorsenedAnnual report
「Increase in inventories △¥260,950 million △¥344,176 million」
The increase in inventories from continuing operations expanded from ¥260.9 billion in the same period of the previous year to ¥344.2 billion, and was disclosed as a factor contributing to the decrease in operating cash flow. - FY2025MitigatedAnnual report
「The impairment losses recognized on inventories in fiscal 2023 and fiscal 2024 were ¥117,633 million and ¥107,164 million, respectively.」
The inventory write-down decreased from ¥117.633 billion to ¥107.164 billion, reflecting a reduction in the amount of demand and inventory risk that materialized. - FY2025-H1MitigatedAnnual report
「For Sony on a consolidated basis excluding the financial services segment, net cash receipts of ¥572.2 billion in the current interim consolidated accounting period compared with net cash payments of ¥73.7 billion in the prior-year period. This was due mainly to smaller increases in trade receivables and contract assets and in inventories, as well as an increase in pretax income after taking into account noncash adjustments, including depreciation and amortization, amortization of contract costs, net other operating losses (gains), and net losses (gains) on securities.」
Operating cash flow excluding the financial services segment improved from net payments to net receipts of ¥572.2 billion, while the increase in inventories was also smaller than in the prior-year period. - FY2024WorsenedAnnual report
「The impairment losses recognized on inventories in fiscal 2022 and fiscal 2023 were ¥110,901 million and ¥117,633 million, respectively.」
Inventory impairment losses increased from ¥110.901 billion to ¥117.633 billion, and demand forecasting and inventory risks continued to materialize. - FY2024-Q3MitigatedAnnual report
「For Sony on a consolidated basis excluding the financial services segment, cash receipts exceeded cash payments by ¥618.5 billion, an increase of ¥428.8 billion in receipts year on year. This increase was due mainly to smaller increases in inventories and content assets and a larger increase in trade payables.」
Operating cash flow excluding the financial services segment showed net receipts of ¥618.5 billion, as increases in inventories and content assets were smaller than in the prior-year period. - FY2024-Q2Increase in inventoryAnnual report
「For Sony on a consolidated basis excluding the financial services segment, cash payments exceeded cash receipts by ¥73.7 billion, an increase of ¥23.4 billion in payments year on year. This increase was due mainly to larger increases in trade receivables and contract assets and in inventories, as well as higher corporate income tax payments.」
Cash flow from operating activities excluding the financial services segment showed net payments of ¥73.7 billion, with the larger increase in inventories disclosed as a factor behind the increase in payments. - FY2023WorsenedAnnual report
「The impairment losses recognized on inventories in fiscal 2021 and fiscal 2022 were ¥80,546 million and ¥110,901 million, respectively.」
Parts, demand forecasting and inventory risks continued to materialize, with inventory impairment losses increasing from ¥80.546 billion to ¥110.901 billion. - FY2021MaterialisedAnnual report
「Sony will continue working to secure the semiconductors and other components it needs in response to the global shortages that have become pronounced since the second half of fiscal 2020. However, if supply shortages become acute or persist, this could adversely affect operating results in the G&NS, EP&S and I&SS segments.」
Risks related to fluctuations in component supply, demand forecasting and inventory materialized as global shortages of semiconductors and components, supply constraints, production delays and impairment losses on image sensor inventory. - FY2021-Q3MaterialisedAnnual report
「In the I&SS segment, image sensor sales have declined as Sony suspended shipments of image sensors to certain customers on 15 September 2020 in compliance with export restrictions announced by the US government on 17 August 2020. Sony also recognized an impairment loss on image sensor inventory for the customer during the cumulative second quarter of fiscal 2020.」
Shipment suspensions to certain customers due to export restrictions continued, resulting in lower sales and an inventory impairment loss. For the nine months through the third quarter, an ¥8.5 billion reversal gain was recognized after the ¥17.5 billion impairment loss, resulting in a net impairment loss of ¥9.0 billion. - FY2021-Q2MaterialisedAnnual report
「In the I&SS segment, image sensor sales have declined as Sony suspended shipments of image sensors to certain customers on 15 September 2020 in compliance with export restrictions announced by the US government on 17 August 2020. Sony also recognized an impairment loss on image sensor inventory for the customer during the cumulative second quarter of fiscal 2020.」
Demand and supply fluctuations and inventory risks materialized as shipment suspensions due to export restrictions, lower sales and a ¥17.5 billion impairment loss on image sensor inventory for customers. - FY2019MaterialisedAnnual report
「The operating loss increased by ¥69.5 billion year on year to ¥97.1 billion. This substantial increase in the loss was due mainly to expenses related to the decline in unit sales described above, impairment losses on excess parts inventory on hand, and increased restructuring costs, despite the impact of lower operating expenses and lower impairment losses on long-lived assets described above compared with the prior fiscal year.」
Demand and inventory risks materialized as an impairment loss on excess parts inventory in the MC segment, causing the operating loss to widen to ¥97.1 billion. - FY2017MaterialisedAnnual report
「In fiscal 2016, Sony also recognized an impairment loss of ¥6.5 billion on certain image sensor products for mobile devices in the semiconductor segment.」
Demand forecasting and inventory risks materialized in the form of a ¥6.5 billion impairment loss on image sensors for mobile devices. - FY2017-Q3First statedAnnual report
「Sony orders parts and components in line with production volumes and inventory plans determined in advance based on forecasts of consumer demand, but consumer demand fluctuates significantly and is difficult to forecast. Inaccurate forecasts of consumer demand or inadequate management could result in inventory shortages or excess inventory, disrupting production plans and potentially leading to lost sales opportunities and inventory adjustments. In the second quarter of fiscal 2016, Sony recognized an impairment loss of ¥9.4 billion on certain image sensor products in the semiconductor segment.」
Risks related to price and supply fluctuations for parts and components, inaccurate demand forecasts, and inventory shortages and excess inventory were disclosed, with a ¥9.4 billion impairment loss on image sensor inventory cited as an actual occurrence.