Risk of excess inventory from demand forecasts falling short
First written in FY2021. 3 of 7 entries say "Worsened", first in FY2023. Latest entry: 2026-07-31.
Fukuda Denshi moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 13 of 37 companies on the "Worse" side.
16 other companies' latest entry also says "Worsened".
- 2026-07-31WorsenedEarnings
「The main factors included a ¥7,653 million decrease in notes and accounts receivable, trade, a ¥5,067 million increase in investment securities, and a ¥2,211 million increase in merchandise and finished goods.」
The balance of merchandise and finished goods increased from the end of the previous consolidated fiscal year, indicating an increase in inventory associated with the risk of excess inventory resulting from demand forecasts falling short. - FY2026MitigatedAnnual report
「Merchandise and products 9,513 8,340 Raw materials and supplies 3,548 3,721」
The balance of merchandise and products declined from ¥9,513 million in the previous fiscal year to ¥8,340 million. The inventory valuation loss also changed from negative ¥1,187 million in the previous fiscal year to negative ¥288 million in the current fiscal year. - FY2025MitigatedAnnual report
「Merchandise and products 11,362 9,513 Raw materials and supplies 4,054 3,548」
The balances of merchandise and products and raw materials and supplies declined from the previous fiscal year, while the inventory valuation loss changed from ¥1,214 million in the previous fiscal year to negative ¥1,187 million in the current fiscal year. - FY2024WorsenedAnnual report
「The ending inventory balance is stated after a write-down of its carrying amount due to lower profitability, and the following inventory valuation loss is included in cost of sales.」
Merchandise and products totaled ¥11,362 million, while raw materials and supplies totaled ¥4,054 million. The inventory valuation loss increased from ¥597 million in the previous fiscal year to ¥1,214 million. - FY2023WorsenedAnnual report
「The ending inventory balance is stated after a write-down of its carrying amount due to lower profitability, and the following inventory valuation loss is included in cost of sales.」
Merchandise and products totaled ¥10,109 million, while raw materials and supplies totaled ¥5,277 million. The inventory valuation loss also increased from ¥139 million in the previous fiscal year to ¥597 million. - FY2022RestatedAnnual report
「To fulfill its social mission of ensuring a stable supply of merchandise and products, the company must maintain inventory based on future demand forecasts. However, if actual sales fall below future demand forecasts, excess inventory may arise that is no longer part of the normal operating cycle.」
The company reaffirms the need to maintain inventory for stable supply and the risk of excess inventory arising if actual sales fall below demand forecasts. - FY2021First statedAnnual report
「To fulfill its social mission of ensuring a stable supply of merchandise and products, the company must maintain inventory based on future demand forecasts. However, if actual sales fall below future demand forecasts, excess inventory may arise that is no longer part of the normal operating cycle.」
The company identifies as a new major risk the need to maintain inventory for stable supply and the potential for excess inventory if actual sales fall below demand forecasts. It reports merchandise and products of ¥9,792 million and raw materials and supplies of ¥2,920 million, and indicates that fluctuations in demand forecasts may affect profit or loss in the following fiscal year.