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Nkk Switches (6943) · RiskWorsened

Risk of Excess Inventory and Inventory Write-Downs from Production to Plan

First written in FY2020. 2 of 8 entries say "Materialised", first in FY2021. Latest entry: FY2027-H1.

8entries
7years
1from disclosures
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How it moved
ProgressHeldSoftenedWorseFirst statedFY2020MaterialisedFY2021OtherFY2022MaterialisedFY2024OtherFY20252020: 120202021: 120212022: 120222023: 020232024: 120242025: 120252026: 32026
Same theme, other companies
Risk of excess inventory and obsolescence due to demand forecasting errors and supply-demand fluctuationsA theme 76 companies write about · 78 as a headwind · 0 as a tailwind

The whole theme swung hardest in 2017: 5 of 31 companies on the "Worse" side.

18 other companies' latest entry also says "Worsened".

Ridges = years it wrote progress, valleys = years it wrote worse. Most hopeful companies at the back. Drag to turn, scroll to zoom, right-drag to pan. On a phone, two fingers turn and pinch to zoom; one finger scrolls the page.
Showing 14 of the 76 companies compared. The sentences above are computed from all 76.
Full recordFilings, disclosures and news, newest first
  1. FY2027-H1WorsenedAnnual report

    「Meanwhile, continued attention is required regarding the possibility of demand adjustments resulting from a backlash from advance ordering, in addition to elevated raw material prices and logistics costs, and the Group recognizes that this warrants continued monitoring.」

    While reporting a market recovery and growth in orders, the disclosure continues to identify the possibility of future demand adjustments resulting from a backlash from advance ordering as a risk related to excess inventory and demand forecasting.
  2. FY2026MitigatedAnnual report

    「Current consolidated fiscal year △ 22,689」

    The inventory valuation loss changed from ¥56.856 million in the previous fiscal year to △¥22.689 million, indicating an improvement in the valuation loss situation. At the same time, the disclosure continues to state that additional valuation losses may be required based on future sales forecasts and other factors.
  3. 2026-05-15MitigatedRevisions to earnings forecasts

    「過去の半導体不足等を背景にした過剰在庫の調整が概ね収束し受注が回復基調に転じた」

    過剰在庫の調整が概ね収束したと記載し、過剰在庫に関する影響の低減を示している。
  4. FY2025Updated the annual valuation lossAnnual report

    「Ending inventory is stated at the amount after being written down to reflect lower profitability, and the following inventory valuation loss was included in cost of sales. ¥56.856 million」

    In connection with planned production and inventory risk, an inventory valuation loss of ¥56.856 million was recognized in cost of sales.
  5. FY2024MaterialisedAnnual report

    「Following the discontinuation of production and sales of certain products, the company wrote down the value of parts related to those products and recorded the amount as an extraordinary loss under "inventory write-downs."」

    In connection with planned production and inventory risk, an inventory valuation loss of ¥93.662 million related to the discontinuation of production and sales of certain products was recognized as an extraordinary loss.
  6. FY2022Updated the annual valuation lossAnnual report

    「For the current consolidated fiscal year, ending inventory is stated at the amount after being written down to reflect lower profitability, and an inventory valuation loss of ¥13.256 million was included in cost of sales.」

    Regarding the inventory risk associated with planned production, an inventory valuation loss of ¥13.256 million was recognized. Although the valuation loss decreased from ¥46.651 million in the previous fiscal year, the risk continues to materialize.
  7. FY2021MaterialisedAnnual report

    「Ending inventory is stated at the amount after its carrying value has been written down due to lower profitability, and the following inventory valuation losses are included in cost of sales.」

    Regarding the inventory risk associated with planned production, the disclosure states that an inventory valuation loss of ¥46.651 million was included in cost of sales.
  8. FY2020First statedAnnual report

    「For this reason, we are working to strengthen our production control system and improve the accuracy of demand forecasts. However, if excess inventory or similar issues arise due to a sharp deterioration in market conditions, the Group's financial position and operating results may be affected by the recognition of valuation losses and other charges.」

    For certain products manufactured to plan, the disclosure identifies for the first time, as a separate risk, the possibility of excess inventory and valuation losses if market conditions deteriorate beyond the assumptions in demand forecasts.
Moved together

"Continuation of Stable Dividends" moved the same way as this thread, in the same document, in 4 of its 8 moves.

433322★123456
  1. ★This thread
  2. 1Continuation of Stable Dividends4×
  3. 2Foreign Exchange Rate Fluctuation Risk3×
  4. 3Price-Volatility Risk on Investment Securities3×
  5. 4Global Semiconductor Shortages and Difficulties Procuring Materials3×
  6. 5Downturn in the Overall Industrial Switch Market2×
  7. 6Operational efficiency through a zero-based review of all operations2×

★ is this thread; numbers match the list above. The number on a line is how many documents both moved the same way in; lines between the other threads count the documents they moved together in too. Threads that move together often sit closer.

When this could move next
No upcoming earnings preview for Nkk Switches yet. It last moved in the Revisions to earnings forecasts of 2026-05-15: "Mitigated".
News
No news is linked to this thread yet. When an article touches it, it will appear here by date.
Risk of Excess Inventory and Inventory Write-Downs from Production to Plan | NKK SWITCHES CO.,LTD. (6943) | Komori