Stagnant and Excess Inventory and Inventory Write-Down Risk
First written in FY2022. 12 of 16 entries say "Worsened", first in FY2023-Q1. Latest entry: 2026-07-29.
Oi Electric moved to the "Worse" side of this theme in 2022, 1 year before the typical company in this theme (2023).
The whole theme swung hardest in 2018: 3 of 7 companies on the "Worse" side.
7 other companies' latest entry also says "Worsened".
- 2026-07-29WorsenedEarnings
「This was mainly because inventories, particularly work in process, increased with growing demand for optical multiplex transmission equipment and smart-meter-related equipment, while notes and accounts receivable and contract assets decreased as collections of sales from concentrated projects recorded at the end of the previous consolidated fiscal year progressed.」
Work in process increased from ¥5.735931 billion at the end of the previous fiscal year to ¥8.480411 billion, indicating greater inventory exposure. - FY2026WorsenedAnnual report
「The balance for the consolidated fiscal year includes ¥7,339.390 million of inventories held by the Company, representing 25.9% of consolidated total assets. The inventory valuation loss for the consolidated fiscal year of ¥49.984 million is the amount after writing down the carrying value due to reduced profitability」
Inventories held by the Company increased from ¥5,272.881 million in the previous fiscal year to ¥7,339.390 million, and their share of consolidated total assets rose from 22.3% to 25.9%. Although the valuation loss decreased, inventory exposure increased. - FY2026-H1WorsenedAnnual report
「This was mainly due to increases of ¥2,765 million in work in process, ¥351 million in raw materials and supplies, and ¥317 million in property, plant and equipment in preparation for higher production volumes, despite a ¥2,996 million decrease in notes and accounts receivable and contract assets.」
Increases in work in process and raw materials in preparation for higher future production volumes indicate an increasing exposure to the risks of inventory accumulation, excess inventory and additional valuation losses. - FY2025MitigatedAnnual report
「The inventory valuation loss for the consolidated fiscal year of ¥347.877 million is the amount after writing down the carrying value due to reduced profitability and is included in cost of sales.」
The inventory valuation loss decreased from ¥448.865 million in the previous year to ¥347.877 million, and the inventory balance also decreased. However, the potential for additional valuation losses continues to be disclosed. - FY2025-H1WorsenedAnnual report
「This was mainly due to increases of ¥1,220 million in cash and deposits, ¥2,043 million in work in process and ¥155 million in property, plant and equipment, despite decreases of ¥5,006 million in notes and accounts receivable and contract assets, ¥303 million in electronically recorded monetary claims, and ¥239 million in raw materials and supplies.」
Work in process increased by ¥2,043 million from the end of the previous fiscal year, and inventories continued to rise. While cash collection progressed through a reduction in trade receivables, the risks of inventory accumulation, excess inventory and additional valuation losses remain. - FY2024MitigatedAnnual report
「The balance for the consolidated fiscal year includes ¥5,912.286 million of inventories held by the Company, representing 24.8% of consolidated total assets. The inventory valuation loss for the consolidated fiscal year of ¥448.865 million is the amount after writing down the carrying value due to reduced profitability」
Inventories decreased from ¥8,011.618 million in the previous fiscal year to ¥6,417.509 million, and their share of consolidated total assets fell from 35.2% to 24.8%. The valuation loss also decreased from ¥558.114 million to ¥448.865 million, but the risk remains. - FY2024-Q3WorsenedAnnual report
「This was mainly due to increases of ¥1,756 million in work in process, ¥436 million in cash and deposits, and ¥389 million in electronically recorded monetary claims, despite decreases of ¥2,427 million in notes and accounts receivable and contract assets and ¥224 million in merchandise and finished goods.」
Work in process increased by ¥1,756 million from the end of the previous consolidated fiscal year, continuing to indicate a risk of inventory accumulation and excess inventory alongside sales delays caused by materials procurement issues. - FY2024-Q2WorsenedAnnual report
「This was mainly due to increases of ¥1,602 million in work in process and ¥212 million in electronically recorded monetary claims, despite decreases of ¥2,654 million in notes and accounts receivable and contract assets and ¥356 million in merchandise and finished goods.」
Work in process increased by ¥1,602 million from the end of the previous consolidated fiscal year, and total inventories continued to increase. Together with sales delays caused by materials procurement issues, the risks of inventory accumulation, excess inventory and additional valuation losses remain evident. - FY2024-Q1WorsenedAnnual report
「This was mainly due to increases of ¥1,275 million in work in process, ¥760 million in cash and deposits, and ¥154 million in raw materials and supplies, despite a ¥3,702 million decrease in notes and accounts receivable and contract assets.」
Work in process and raw materials and supplies increased from the end of the previous consolidated fiscal year, indicating that the risks of inventory accumulation, excess inventory and additional valuation losses associated with materials procurement issues continue to increase. - FY2023-Q3WorsenedAnnual report
「This was mainly due to increases of ¥1,729 million in work in process, ¥661 million in raw materials and supplies, and ¥533 million in merchandise and finished goods, despite decreases of ¥2,649 million in notes and accounts receivable and contract assets and ¥1,798 million in cash and deposits.」
Work in process, raw materials and supplies, and merchandise and finished goods increased by ¥2,923 million in total from the end of the previous consolidated fiscal year. Together with sales delays caused by materials procurement issues, this indicates an increasing risk of inventory accumulation, excess inventory and additional valuation losses. - FY2023-Q2WorsenedAnnual report
「This was mainly due to increases of ¥995 million in work in process, ¥827 million in raw materials and supplies, and ¥473 million in merchandise and finished goods, despite decreases of ¥3,406 million in notes and accounts receivable and contract assets and ¥834 million in cash and deposits.」
Work in process, raw materials and supplies, and merchandise and finished goods increased, causing inventories to rise by approximately ¥2,295 million from the end of the previous consolidated fiscal year. Together with sales delays caused by materials procurement issues, this indicates an increasing risk of inventory accumulation, excess inventory and additional valuation losses. - FY2023-Q1WorsenedAnnual report
「This was mainly due to increases of ¥617 million in work in process, ¥571 million in raw materials and supplies, ¥419 million in merchandise and finished goods, and ¥313 million in cash and deposits, despite a ¥3,615 million decrease in notes and accounts receivable and contract assets.」
Work in process, raw materials and supplies, and merchandise and finished goods increased by approximately ¥1,600 million in total from the end of the previous consolidated fiscal year. Together with sales deferrals caused by materials procurement issues, this indicates an increasing risk of inventory accumulation, excess inventory and additional valuation losses. - FY2022First statedAnnual report
「The balance includes ¥6,144.738 million of inventories held by the Company, representing 28.2% of consolidated total assets. The ¥417.255 million inventory valuation loss is the amount after writing down the carrying value due to reduced profitability and is included in cost of sales. If market conditions deteriorate and net realizable value declines significantly, if the future use or disposal of inventories held for an extended period changes, or if the expected disposal or use of excess inventory outside the operating cycle changes, additional inventory valuation losses may be recognized.」
Inventories of ¥6,592.491 million were recorded, representing 28.2% of consolidated total assets, while an inventory valuation loss of ¥417.255 million was recognized. The Company disclosed the potential for additional valuation losses due to inventory accumulation, excess inventory and changes in market conditions as a new major risk.