Improving Cash Efficiency through the Cash Conversion Cycle
First written in FY2016. 20 of 37 entries say "Advanced", first in FY2018-Q2. Latest entry: 2026-11-06.
The whole theme swung hardest in 2022: 4 of 22 companies on the "Worse" side.
3 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Operating cash flow for the fiscal year increased by ¥942,619 million, an increase of ¥412,160 million from the previous fiscal year. This was mainly due to an increase in profit before income taxes and an increase in changes in contract liabilities associated with expanded orders.」
Operating cash flow was ¥942,619 million, an increase of ¥412,160 million from the previous year. The increase in profit before income taxes and in contract liabilities associated with expanded orders were cited as factors. - FY2026-H1AdvancedAnnual report
「Operating cash flow for the first six months of the fiscal year increased by ¥207,901 million, with inflows increasing by ¥216,769 million year on year. This was mainly because, although contract assets increased, operating receivables decreased and contract liabilities increased in line with expanded orders.」
Operating cash flow improved from an outflow of ¥8,867 million in the same period of the previous year to an inflow of ¥207,901 million. The decrease in operating receivables and the increase in contract liabilities associated with expanded orders were cited as factors. - FY2025AdvancedAnnual report
「Operating cash flow for the fiscal year increased by ¥530,459 million, with inflows increasing by ¥199,272 million from the previous fiscal year. This was mainly due to an increase in profit before income taxes and the acquisition of contract liabilities associated with expanded orders.」
Operating cash flow was ¥530,459 million, an improvement of ¥199,272 million from the previous year. The increase in profit before income taxes and the acquisition of contract liabilities associated with expanded orders were cited as factors. - FY2025-H1AdvancedAnnual report
「Operating cash flow for the first six months of the fiscal year decreased by ¥8,867 million, although inflows increased by ¥172,364 million year on year. This was mainly because, while inventories and advances increased, contract liabilities shifted from a decrease to an increase and interim profit before income taxes increased.」
Operating cash flow remained an outflow of ¥8,867 million, but improved by ¥172,364 million from the same period of the previous year. The shift to an increase in contract liabilities and the increase in interim profit before income taxes were cited as factors. - FY2024AdvancedAnnual report
「Operating cash flow for the fiscal year increased by ¥331,186 million, with inflows increasing by ¥250,298 million from the previous fiscal year. This was mainly due to an increase in profit before income taxes and the acquisition of contract liabilities associated with expanded orders.」
Operating cash flow increased from ¥80,888 million in the previous fiscal year to ¥331,186 million. The increase in profit before income taxes and the acquisition of contract liabilities associated with expanded orders were cited as factors. - FY2024-Q3Year-on-year deterioration in operating cash flowAnnual report
「Operating cash flow for the first nine months of the fiscal year decreased by ¥302,187 million, with cash outflows increasing by ¥84,395 million year on year. This was mainly because, although income from profit before quarterly income taxes increased, contract assets increased and contract liabilities shifted from an increase to a decrease.」
Operating cash flow was an outflow of ¥302,187 million, with the outflow increasing by ¥84,395 million from the same period of the previous year. The company cited increases in contract assets and the shift in contract liabilities to a decrease as factors. - FY2024-Q2Year-on-year deterioration in operating cash flowAnnual report
「Operating cash flow for the first six months of the fiscal year decreased by ¥181,232 million, with cash outflows increasing by ¥88,405 million year on year. This was mainly because, although income from profit before quarterly income taxes increased and the decrease in operating liabilities narrowed compared with the same period of the previous year, contract liabilities shifted from an increase to a decrease and the decrease in operating receivables narrowed.」
Operating cash flow was an outflow of ¥181,232 million, with the outflow increasing by ¥88,405 million from the same period of the previous year. The shift in contract liabilities from an increase to a decrease was cited as a factor. - FY2024-Q1Year-on-year deterioration in operating cash flowAnnual report
「Operating cash flow for the first quarter of the fiscal year decreased by ¥160,187 million, with cash outflows increasing by ¥12,009 million year on year. This was mainly because, although income from profit before quarterly income taxes increased and the decrease in operating liabilities narrowed compared with the same period of the previous year, increases in inventories and advances expanded and the increase in contract liabilities decreased.」
Operating cash flow was an outflow of ¥160,187 million, with the outflow increasing by ¥12,009 million from the same period of the previous year. The company attributed this mainly to increases in inventories and advances and the smaller increase in contract liabilities. - FY2023Year-on-year decrease in operating cash flowAnnual report
「Operating cash flow for the fiscal year increased by ¥80,888 million, but decreased by ¥204,675 million from the previous fiscal year. This was mainly due to an increase in working capital associated with expanded revenue opportunities and higher corporate income tax payments.」
Operating cash flow remained positive but decreased by ¥204,675 million from the previous year due to increases in working capital and corporate income tax payments. - FY2023-Q3Year-on-year deterioration in operating cash flowAnnual report
「Net cash used in operating activities during the current nine-month consolidated period was ¥217.792 billion, with cash expenditure up ¥25.980 billion from the same period of the previous year. This was mainly due to increased payments relating to corporate income taxes paid or refunded, compared with the previous consolidated fiscal year, and other factors.」
Operating cash flow was an outflow of ¥217.792 billion, with the outflow increasing by ¥25.980 billion from the same period of the previous year. Higher corporate income tax payments and other factors were cited as causes. - FY2023-Q2AdvancedAnnual report
「Net cash used in operating activities during the current six-month consolidated period was ¥92.826 billion, with cash expenditure down ¥39.654 billion from the same period of the previous year. This was mainly due to increases in profit before income taxes for the quarter, contract liabilities and other items.」
Operating cash flow was still an outflow of ¥92.826 billion, but the outflow decreased by ¥39.654 billion from the same period of the previous year, improving funding efficiency. - FY2023-Q1Year-on-year deterioration in operating cash flowAnnual report
「Net cash used in operating activities during the current three-month consolidated period was ¥148.177 billion, with cash expenditure up ¥5.684 billion from the same period of the previous year. This was mainly due to higher corporate income tax payments, despite a smaller increase in working capital than in the same period of the previous year.」
Operating cash flow was an outflow of ¥148.177 billion, with the outflow increasing by ¥5.684 billion from the same period of the previous year. Although the increase in working capital narrowed, higher corporate income tax payments and other factors had an impact. - FY2022AdvancedAnnual report
「Net cash provided by operating activities during the consolidated fiscal year was ¥285.563 billion, an increase of ¥380.511 billion from the previous consolidated fiscal year. This was mainly due to a decrease in working capital, which had increased substantially in the previous consolidated fiscal year, and an increase in profit before income taxes.」
Operating cash flow improved from an outflow of ¥94.948 billion in the previous year to an inflow of ¥285.563 billion, due to a decrease in working capital and an increase in profit. - FY2022-Q3AdvancedAnnual report
「Net cash used in operating activities during the current nine-month consolidated period was ¥191.811 billion, with cash expenditure down ¥287.7 billion from the same period of the previous year.」
Operating cash flow was still an outflow of ¥191.811 billion, but the outflow decreased by ¥287.7 billion from the same period of the previous year, improving funding efficiency. - FY2022-Q2AdvancedAnnual report
「Net cash used in operating activities during the current six-month consolidated period was ¥132.481 billion, with cash expenditure down ¥239.611 billion from the same period of the previous year.」
Operating cash flow was still an outflow of ¥132.481 billion, but the outflow decreased by ¥239.611 billion from the same period of the previous year, improving funding efficiency. - FY2022-Q1AdvancedAnnual report
「Net cash used in operating activities during the current three-month consolidated period was ¥142.493 billion, with cash expenditure down ¥81.153 billion from the same period of the previous year.」
Operating cash flow was still an outflow of ¥142.493 billion, but the outflow decreased by ¥81.153 billion year on year. - FY2021Full-year deterioration in operating cash flowAnnual report
「Net cash used in operating activities during the consolidated fiscal year was ¥94.948 billion, a decrease of ¥547.512 billion from the previous consolidated fiscal year.」
Operating cash flow resulted in a substantial cash outflow due to the reversal of the previous year’s recovery of compensation assets relating to the South Africa project, as well as an increase in operating receivables and a larger decrease in contract liabilities. - FY2021-Q3Year-on-year deterioration in operating cash flowAnnual report
「Net cash used in operating activities during the current nine-month consolidated period was ¥479.511 billion, a decrease of ¥342.374 billion from the same period of the previous year. This was mainly due to a larger increase in working capital and other factors.」
The operating cash flow outflow increased by ¥342.374 billion year on year to ¥479.511 billion. - FY2021-Q2Year-on-year deterioration in operating cash flowAnnual report
「Net cash used in operating activities during the current six-month consolidated period was ¥372.092 billion, a decrease of ¥280.916 billion from the same period of the previous year. This was mainly due to a decrease in profit before income taxes and a larger increase in working capital.」
Operating cash flow was an outflow of ¥372.092 billion, a deterioration of ¥280.916 billion year on year. The company cited the decrease in profit before income taxes and the larger increase in working capital as factors. - FY2021-Q1Year-on-year deterioration in operating cash flowAnnual report
「Net cash used in operating activities during the current three-month consolidated period was ¥223.646 billion, a decrease of ¥103.688 billion from the same period of the previous year. This was mainly due to a decrease in profit before income taxes and other factors.」
Operating cash flow was an outflow of ¥223.646 billion, a deterioration of ¥103.688 billion year on year. - FY2020AdvancedAnnual report
「Net cash provided by operating activities during the consolidated fiscal year was ¥452.564 billion, an increase of ¥32.215 billion from the previous consolidated fiscal year. This was mainly due to a reduction in compensation assets relating to the South Africa project, resulting from the receipt of a settlement payment from Hitachi, Ltd. and other factors, despite a decrease in profit before income taxes.」
Operating cash flow was ¥452.564 billion, an increase of ¥32.215 billion from the previous year. The recovery of compensation assets relating to the South Africa project was cited as a factor contributing to the improvement. - FY2020-Q3Year-on-year deterioration in operating cash flowAnnual report
「Net cash used in operating activities during the current nine-month consolidated period was ¥137.137 billion, a decrease of ¥117.481 billion from the same period of the previous year. This was mainly due to a larger increase in working capital and other factors.」
Operating cash flow deteriorated from an outflow of ¥19.656 billion in the same period of the previous year to an outflow of ¥137.137 billion. The company cited the larger increase in working capital as a factor. - FY2020-Q2Year-on-year deterioration in operating cash flowAnnual report
「Net cash used in operating activities during the current six-month consolidated period was ¥91.176 billion, a decrease of ¥93.666 billion from the same period of the previous year. This was mainly due to a larger increase in working capital and other factors.」
Operating cash flow changed from an inflow of ¥2.490 billion in the same period of the previous year to an outflow of ¥91.176 billion. The company attributed this to the larger increase in working capital. - FY2020-Q1Deterioration in operating cash flowAnnual report
「Net cash used in operating activities during the current three-month consolidated period was ¥119.958 billion, a decrease of ¥67.742 billion from the same period of the previous year. This was mainly due to a decrease in contract liabilities and other factors.」
Operating cash flow deteriorated from an outflow of ¥52.216 billion in the same period of the previous year to an outflow of ¥119.958 billion. The company attributed this to a decrease in contract liabilities and other factors. - FY2019AdvancedAnnual report
「During the consolidated fiscal year, orders received and revenue were roughly unchanged from the previous consolidated fiscal year, affected by cancellations of large projects and the postponement of orders to the following fiscal year or later. However, business profit increased in all segments, while free cash flow reached ¥243.0 billion, substantially exceeding the initial plan due to reductions in working capital, and interest-bearing debt fell to its lowest level on record.」
Free cash flow reached ¥243.0 billion as a result of working capital reductions, exceeding the planned level. This newly demonstrates the results of improved funding efficiency. - FY2019-Q3Year-on-year deterioration in operating cash flowAnnual report
「Net cash used in operating activities during the current nine-month consolidated period was ¥30.704 billion, a decrease of ¥14.667 billion from the same period of the previous year. This was mainly due to increased corporate income tax payments and other factors.」
Operating cash flow was an outflow of ¥30.704 billion, a deterioration of ¥14.667 billion year on year. The company cited higher corporate income tax payments and other factors as the main causes. - FY2019-Q2AdvancedAnnual report
「Net cash used in operating activities during the current six-month consolidated period was ¥4.288 billion, an improvement of ¥58.872 billion from the same period of the previous year. This was mainly due to an increase in profit before income taxes and other factors.」
The operating cash flow outflow narrowed from ¥63.160 billion in the same period of the previous year to ¥4.288 billion, an improvement of ¥58.872 billion year on year. The company cited higher profit before income taxes as the main factor. - FY2019-Q1Increase in the working capital burdenAnnual report
「Net cash used in operating activities during the current three-month consolidated period was ¥55.575 billion, a decrease of ¥38.632 billion from the same period of the previous year. This was mainly due to increased expenditure on working capital, despite an increase in profit before income taxes.」
Operating cash flow declined by ¥38.632 billion year on year to an outflow of ¥55.575 billion, owing to increased expenditure on working capital. - FY2018AdvancedAnnual report
「Net cash provided by operating activities during the consolidated fiscal year was ¥345.109 billion, an increase of ¥249.196 billion from the previous consolidated fiscal year, or 259.8%. This was mainly due to a reduction in the working capital burden resulting from inventory reductions through production efficiency improvements and the receipt of customer advances, following efforts to improve cash flow generation through balance sheet improvements.」
Inventory reductions through production efficiency improvements and the receipt of customer advances resulted in operating cash flow of ¥345.109 billion, an improvement of ¥249.196 billion from the previous year. - FY2018-Q2AdvancedAnnual report
「Net cash used in operating activities during the current six-month consolidated period was ¥110.844 billion, an improvement of ¥7.509 billion from the same period of the previous year. This was mainly due to a reduction in the working capital burden resulting from lower expenditure on inventories, as well as an increase in profit before income taxes and other factors.」
The working capital burden declined as expenditure on inventories decreased, improving the operating cash flow deficit by ¥7.509 billion year on year. - FY2017RestatedAnnual report
「To reduce interest-bearing debt, the company is seeking to make effective use of surplus funds within the group through a cash management system. It is also working to improve asset efficiency by reducing trade receivables and inventories and increasing the utilisation rate of fixed assets.」
The company continues to improve funding efficiency through cash management and reductions in trade receivables and inventories. - FY2016First statedAnnual report
「Accordingly, the company will introduce the cash conversion cycle as a new performance indicator and strongly promote achievement of the target cycle period for each SBU. Specifically, it will accelerate reductions in working capital by pursuing fundamental measures, including reviewing the supply chain, business processes and factory management.」
The company will adopt the CCC as a new performance indicator and review its supply chain, business processes and factory management.