Liquidity Risk for Trade Payables and Borrowings
First written in FY2017. 16 of 30 entries say "Worsened", first in FY2018. Latest entry: FY2026.
Nippon Avionics moved to the "Worse" side of this theme in 2018, 6 years before the typical company in this theme (2024).
25 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Funds used in operating activities amounted to ¥3,621 million. This was mainly because funds decreased as trade receivables and contract assets and inventories increased, despite an increase in profit before income taxes.」
Operating cash flow deteriorated from ¥2,150 million generated in the previous year to ¥3,621 million used, and cash and cash equivalents also decreased from ¥1,934 million to ¥1,024 million. Increased borrowings and lower cash liquidity occurred concurrently. - FY2026-H1WorsenedAnnual report
「Funds used in operating activities amounted to ¥1,405 million (compared with ¥1,007 million generated in the same interim period of the previous year). This was mainly due to an increase in trade receivables.」
Operating cash flow deteriorated from ¥1,007 million generated in the same period of the previous year to ¥1,405 million used, and cash and cash equivalents also decreased from ¥1,934 million to ¥1,118 million. The company borrowed funds to finance the acquisition of treasury shares, increasing borrowings outstanding to ¥7,790 million, and liquidity pressure increased. - FY2025Operating cash flow recovery alongside a decline in funds due to treasury share acquisitionsAnnual report
「Funds generated by operating activities amounted to ¥2,150 million. … Cash and cash equivalents at the end of the fiscal year amounted to ¥1,934 million. … Funds used in financing activities amounted to ¥2,085 million. This was mainly due to expenditures for the acquisition of treasury shares.」
Operating cash flow improved from ¥206 million used in the previous fiscal year to ¥2,150 million generated. Meanwhile, cash and cash equivalents decreased by ¥407 million because ¥1,991 million was spent on the acquisition of treasury shares. - FY2025-H1WorsenedAnnual report
「Cash and cash equivalents (hereinafter, “funds”) at the end of the interim consolidated accounting period decreased by ¥1,275 million from the end of the previous fiscal year to ¥1,066 million. … Funds generated by operating activities amounted to ¥1,007 million … Funds used in financing activities amounted to ¥2,056 million … This was mainly due to expenditures for the acquisition of treasury shares.」
Operating cash flow improved from funds used in the same period of the previous year to ¥1,007 million generated, while ¥2,056 million was used in financing activities for the acquisition of treasury shares, reducing cash and cash equivalents to ¥1,066 million. Cash liquidity declined. - FY2024WorsenedAnnual report
「Funds used in operating activities amounted to ¥206 million. This was mainly because funds decreased as a result of increases in trade receivables and contract assets and inventories, despite an increase in income before income taxes.」
Operating cash flow amounted to ¥206 million used, reflecting a cash burden from increases in trade receivables, contract assets and inventories. Borrowings outstanding also increased by ¥1,140 million, and liquidity risk increased. - FY2024-Q3WorsenedAnnual report
「Total assets at the end of the third quarter increased by ¥1,897 million from the end of the previous fiscal year to ¥25,861 million. This was mainly because notes and accounts receivable and contract assets increased by ¥2,358 million and inventories increased by ¥356 million, while cash and deposits decreased by ¥961 million. … Total liabilities increased by ¥949 million from the end of the previous fiscal year to ¥12,743 million. This was mainly because short-term borrowings increased by ¥1,185 million.」
Cash and deposits decreased by ¥961 million to ¥1,147 million, while short-term borrowings increased by ¥1,185 million. Lower cash liquidity and increased borrowings occurred concurrently, and liquidity risk worsened. - FY2024-Q2WorsenedAnnual report
「Cash and cash equivalents (hereinafter, “funds”) at the end of the second quarter decreased by ¥328 million from the end of the previous fiscal year to ¥1,779 million. Funds used in operating activities amounted to ¥1,191 million (compared with ¥464 million used in the same quarter of the previous year). This was mainly due to an increase in trade receivables.」
Cash and cash equivalents decreased by ¥328 million from the end of the previous fiscal year to ¥1,779 million, while the amount of operating cash flow used increased from ¥464 million in the same period of the previous year to ¥1,191 million. Financing through increased borrowings occurred concurrently, and liquidity risk worsened. - FY2024-Q1WorsenedAnnual report
「Total assets at the end of the first quarter decreased by ¥981 million from the end of the previous fiscal year to ¥22,982 million. This was mainly because cash and deposits decreased by ¥747 million.」
Cash and deposits decreased by ¥747 million from the end of the previous fiscal year to ¥1,361 million. Borrowings also increased, and liquidity risk worsened during the quarter. - FY2023Operating cash flow deficit alongside a decline in borrowingsAnnual report
「Funds used in operating activities amounted to ¥860 million. This was mainly because funds decreased as a result of increases in trade receivables and inventories, despite increases in income before income taxes and accounts payable.」
Operating cash flow deteriorated from ¥3,352 million generated in the previous year to ¥860 million used, while borrowings outstanding decreased by ¥220 million. A decline in cash on hand and a decrease in borrowings occurred concurrently. - FY2023-Q3Cash and borrowings both decreasedAnnual report
「Total assets at the end of the third quarter of the current consolidated fiscal year increased by ¥596 million from the end of the previous consolidated fiscal year to ¥23,655 million. This was mainly because notes and accounts receivable and contract assets increased by ¥1,385 million and inventories increased by ¥451 million, while cash and deposits decreased by ¥1,144 million.」
Cash and deposits decreased by ¥1,144 million from the end of the previous fiscal year to ¥1,902 million, while short-term borrowings decreased by ¥220 million. Lower cash liquidity and a decline in borrowings occurred concurrently. - FY2023-Q2Operating cash flow deterioration alongside a decline in borrowingsAnnual report
「Cash and cash equivalents (hereinafter, “funds”) at the end of the second quarter decreased by ¥427 million from the end of the previous fiscal year to ¥2,620 million. Funds used in operating activities amounted to ¥464 million (compared with ¥1,341 million generated in the same quarter of the previous year). Borrowings outstanding at the end of the second quarter decreased by ¥220 million from the end of the previous fiscal year to ¥3,650 million.」
Cash and cash equivalents decreased by ¥427 million, and operating cash flow deteriorated from ¥1,341 million generated in the same period of the previous year to ¥464 million used. Meanwhile, borrowings outstanding decreased by ¥220 million, so liquidity was affected by both adverse and mitigating factors. - FY2022MitigatedAnnual report
「Cash generated from operating activities was ¥3.352 billion. ... At the end of the current consolidated fiscal year, the balance of borrowings had decreased by ¥1.330 billion from the end of the previous consolidated fiscal year to ¥3.870 billion.」
Operating cash flow improved from ¥859 million generated to ¥3,352 million generated, while borrowings outstanding decreased from ¥5,200 million to ¥3,870 million. Liquidity pressure and reliance on financing decreased. - FY2022-Q3Lower borrowings and a slight decrease in cashAnnual report
「Cash and deposits 2,291 2,177 Short-term borrowings 4,320 4,370 Long-term borrowings 880 390」
Cash and deposits decreased by ¥114 million from the end of the previous fiscal year, while the balance of borrowings decreased from ¥5,200 million to ¥4,760 million. A slight decrease in on-hand funds coincided with a decline in borrowings. - FY2022-Q2MitigatedAnnual report
「Cash generated from operating activities increased to ¥1.341 billion from ¥909 million in the same period of the previous year, mainly due to an increase in profit before income taxes. At the end of the second quarter of the current consolidated fiscal year, the balance of borrowings had decreased by ¥90 million from the end of the previous consolidated fiscal year to ¥5.110 billion.」
Cash flow from operating activities increased from ¥909 million in the same period of the previous year to ¥1,341 million, while the balance of borrowings also decreased by ¥90 million. Liquidity pressure declined. - FY2022-Q1MitigatedAnnual report
「The Company also worked to improve cash flow and acquired and cancelled preferred shares without increasing borrowings.」
The Company explained that it had acquired and cancelled preferred shares without increasing borrowings. From a liquidity management perspective, it reorganized its capital structure without relying on additional borrowings. - FY2021MitigatedAnnual report
「Cash generated from operating activities was ¥859 million.」
Cash flow from operating activities improved from a use of ¥1,123 million in the previous fiscal year to cash generation of ¥859 million, and the balance of borrowings also decreased. Cash and cash equivalents stood at ¥2,291 million, and liquidity pressure was lower than in the previous fiscal year. - FY2021-Q3Cash and borrowings both decreasedAnnual report
「Total assets at the end of the third quarter of the current consolidated fiscal year increased by ¥1.379 billion from the end of the previous consolidated fiscal year to ¥26.196 billion. This was mainly because inventories increased by ¥1.076 billion. Short-term borrowings 4,030 4,000 Long-term borrowings 1,270 1,760」
While the balance of borrowings decreased, inventories increased by ¥1,076 million, and cash and deposits decreased by ¥473 million from ¥2,350 million to ¥1,877 million. From a liquidity perspective, cash and borrowings both decreased. - FY2021-Q2MitigatedAnnual report
「Cash generated from operating activities was ¥909 million, compared with cash used of ¥1.234 billion in the same quarter of the previous year. This was mainly due to the recording of profit before income taxes and the increase in accounts payable.」
Cash flow from operating activities improved from a use of ¥1,234 million in the same quarter of the previous year to cash generation of ¥909 million. Although the cash balance decreased by ¥119 million from the end of the previous fiscal year, operating cash flow and the balance of borrowings improved. - FY2021-Q1WorsenedAnnual report
「Total assets at the end of the first quarter of the current consolidated fiscal year increased by ¥97 million from the end of the previous consolidated fiscal year to ¥24.913 billion. This was mainly because inventories increased by ¥726 million, although cash and deposits decreased by ¥333 million.」
Cash and deposits decreased by ¥333 million from the end of the previous fiscal year, while inventories increased by ¥726 million. Short-term borrowings of ¥4,050 million and long-term borrowings of ¥1,710 million remained at approximately the same levels as at the end of the previous fiscal year, but on-hand liquidity declined and inventories increased. - FY2020WorsenedAnnual report
「Cash and cash equivalents, hereinafter referred to as funds, at the end of the current consolidated fiscal year decreased by ¥866 million from the end of the previous consolidated fiscal year to ¥2.350 billion.」
Cash and cash equivalents decreased from ¥3,217 million to ¥2,350 million, while cash flow from operating activities deteriorated from cash generation of ¥2,737 million to a use of ¥1,123 million. Borrowings increased by ¥420 million. - FY2020-Q3WorsenedAnnual report
「Total assets at the end of the third quarter of the current consolidated fiscal year decreased by ¥2.789 billion from the end of the previous consolidated fiscal year to ¥23.702 billion. This was mainly because cash and deposits decreased by ¥1.425 billion and notes and accounts receivable decreased by ¥1.960 billion.」
Cash and deposits decreased by ¥1,425 million from the end of the previous fiscal year, while notes and accounts receivable decreased by ¥1,960 million. Although no significant increase in the balance of borrowings was disclosed, on-hand liquidity and operating receivables contracted. - FY2020-Q2WorsenedAnnual report
「Cash and cash equivalents, hereinafter referred to as funds, at the end of the second quarter of the current consolidated fiscal year decreased by ¥1.256 billion from the end of the previous consolidated fiscal year to ¥1.960 billion. Cash used in operating activities was ¥1.234 billion, compared with cash generated of ¥23 million in the same quarter of the previous year.」
Cash and cash equivalents decreased by ¥1,256 million from the end of the previous fiscal year to ¥1,960 million, while cash flow from operating activities deteriorated from cash generation of ¥23 million in the same period of the previous year to a use of ¥1,234 million. Borrowings decreased by ¥40 million, but liquidity risk increased on a numerical basis. - FY2019MitigatedAnnual report
「Cash generated from operating activities was ¥2.737 billion. At the end of the current consolidated fiscal year, the balance of borrowings had decreased by ¥1.385 billion from the end of the previous consolidated fiscal year to ¥5.340 billion.」
Cash flow from operating activities improved from a use of ¥1,436 million to cash generation of ¥2,737 million, and the balance of borrowings also decreased. Liquidity risk and dependence on funding therefore declined from the previous fiscal year. - FY2019-Q3WorsenedAnnual report
「Short-term borrowings 3,205 4,275 Long-term borrowings 3,520 3,030」
The balance of borrowings increased from ¥6.725 billion at the end of the previous fiscal year to ¥7.305 billion. Dependence on funding associated with liquidity risk increased on a numerical basis. - FY2019-Q2WorsenedAnnual report
「Cash generated from operating activities was ¥23 million, compared with cash generated of ¥652 million in the same quarter of the previous year. ... Cash generated from financing activities was ¥147 million, compared with ¥54 million in the same quarter of the previous year. This was mainly due to proceeds from borrowings. At the end of the second quarter of the current consolidated fiscal year, the balance of borrowings had increased by ¥147 million from the end of the previous consolidated fiscal year to ¥6.872 billion.」
Cash generated from operating activities was limited to ¥23 million, while ¥147 million was raised through borrowings in financing activities. The balance of borrowings also increased to ¥6.872 billion, indicating greater dependence on funding. - FY2019-Q1WorsenedAnnual report
「Total liabilities decreased by ¥765 million from the end of the previous consolidated fiscal year to ¥17,835 million. This was mainly because, although short-term borrowings increased by ¥262 million, notes and accounts payable decreased by ¥461 million and provision for bonuses decreased by ¥404 million.」
Short-term borrowings increased by ¥262 million, and the balance of borrowings increased from the end of the previous fiscal year. Details of cash flows from operating activities were not disclosed in the quarterly report for the current period. - FY2018WorsenedAnnual report
「Cash used in operating activities was ¥1.436 billion. At the end of the current consolidated fiscal year, the balance of borrowings had increased by ¥2.191 billion from the end of the previous consolidated fiscal year to ¥6.725 billion.」
Cash flow from operating activities represented a use of ¥1.436 billion, and the balance of borrowings also increased to ¥6.725 billion. Dependence on funding and liquidity risk increased on a numerical basis. - FY2017First statedAnnual report
「Operating payables and borrowings are exposed to liquidity risk. Our corporate group manages this risk by having each company prepare a monthly cash flow plan and through other measures.」
The Company described separately for the first time the liquidity risk associated with operating payables and borrowings and its management through monthly cash flow plans prepared by each company.