Customer Credit and Bad Debt Risk
First written in FY2016. 4 of 19 entries say "Materialised", first in FY2019-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2026: 19 of 64 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「Provision for doubtful accounts (investments and other assets) 55 174」
The provision for doubtful accounts recorded under investments and other assets increased from ¥55 million to ¥174 million, expanding the provision balance held against credit and bad-debt risk. - FY2026-H1Increase in the provision for doubtful accounts and allowance balanceAnnual report
「Provision for doubtful accounts △ 19 37」
The provision for doubtful accounts increased from a negative ¥19 million in the same period of the previous year to ¥37 million. The balance of the provision for doubtful accounts, including both the current and non-current portions on the balance sheet, also increased. - FY2025Decrease in allowance for doubtful accountsAnnual report
「Allowance for doubtful accounts 129 29 91 67」
The allowance for doubtful accounts comprised an opening balance of ¥129 million, an increase of ¥29 million during the period, a decrease of ¥91 million during the period and a closing balance of ¥67 million. No reason was stated for a reduction in bad-debt risk itself. - FY2024-Q3Overall decline in the allowance for doubtful accounts balance despite an increase in the current portionAnnual report
「Allowance for doubtful accounts △ 134 △ 168」
The allowance for doubtful accounts under current assets increased from ¥120 million to ¥134 million, while the allowance under investments and other assets decreased from ¥721 million to ¥168 million. The total allowance for doubtful accounts balance declined from the end of the previous fiscal year. - FY2024-Q2Overall decline in the allowance for doubtful accounts balance despite an increase in the current portionAnnual report
「Allowance for doubtful accounts △ 120 △ 132 Allowance for doubtful accounts △ 721 △ 142」
The allowance for doubtful accounts under current assets increased from ¥120 million to ¥132 million, while the allowance under investments and other assets decreased from ¥721 million to ¥142 million. The total allowance for doubtful accounts balance declined. - FY2024-Q1Decrease in allowance for doubtful accountsAnnual report
「Allowance for doubtful accounts △ 120 △ 118 Allowance for doubtful accounts △ 721 △ 134」
The allowance for doubtful accounts decreased from ¥120 million to ¥118 million under current assets and from ¥721 million to ¥134 million under investments and other assets. No reason was stated for a reduction in bad-debt risk itself. - FY2023-Q3Increase in Allowance for Doubtful AccountsAnnual report
「Allowance for doubtful accounts △ 85 △ 122 Allowance for doubtful accounts △ 670 △ 726」
The allowance for doubtful accounts increased from ¥85 million to ¥122 million under current assets and from ¥670 million to ¥726 million under investments and other assets. No significant change in the risk section or reason for the increase was stated. - FY2023-Q2Continued decline in the provision for doubtful accountsAnnual report
「Provision for doubtful accounts 12 8」
The provision for doubtful accounts declined from ¥12 million in the same period of the previous year to ¥8 million. It does not state that bad-debt risk itself has declined. - FY2022RaisedAnnual report
「We set credit limits for all approximately 8,000 customers, review them regularly and work to reduce bad-debt risk, but this does not guarantee full collection. If a specific customer defaults due to bankruptcy or other reasons, this could affect operating results and financial position.」
The number of customers subject to bad-debt risk was stated as approximately 8,000, expanding the scope from the previous description of approximately 3,000 customers. - FY2020WorsenedAnnual report
「Increasing risk of bad debts due to deteriorating customer performance」
The possibility that the risk of bad debts will increase due to deteriorating customer performance was identified as a new concern. - FY2020-Q3Continued earnings growth driven by a decline in the provision for doubtful accountsAnnual report
「Although gross profit declined due to lower sales and lower profit margins on steel products, selling, general and administrative expenses decreased due to a decline in the provision for doubtful accounts, resulting in higher segment profit.」
In the Kanto and Tohoku areas, the decline in the provision for doubtful accounts continues to be identified as a factor behind higher segment profit. It does not state that credit risk itself has declined. - FY2020-Q2Continued earnings growth driven by a decline in the provision for doubtful accountsAnnual report
「Although gross profit declined due to lower steel product sales volumes and profit margins in the steel product sales business, profit increased due to a decline in the provision for doubtful accounts.」
In the Kanto and Tohoku areas, the decline in the provision for doubtful accounts offset the decrease in gross profit caused by lower sales volumes and profit margins, resulting in a 48.4% year-on-year increase in segment profit. The statement does not describe the decline in the provision as a reduction in credit risk itself. - FY2020-Q1Earnings improvement due to a decline in the provision for doubtful accountsAnnual report
「In terms of profit and loss, although gross profit declined due to lower profit margins on steel product sales, operating income was ¥1,230 million, up 16.1% year on year, ordinary income was ¥1,288 million, up 16.6%, and net income attributable to owners of the parent was ¥885 million, up 20.4%, due to a decline in the provision for doubtful accounts.」
The decline in the provision for doubtful accounts was identified as a factor behind increases in operating income, ordinary income and net income attributable to owners of the parent. It does not state that bad-debt risk itself has declined. - FY2019MaterialisedAnnual report
「The principal expenses and amounts included in selling, general and administrative expenses are as follows: Freight, ¥4,318 million; provision for doubtful accounts, ¥753 million」
The provision for doubtful accounts increased from ¥8 million in the previous fiscal year to ¥753 million, causing customer credit and bad-debt risk to emerge as higher full-year expenses and lower profit margins. - FY2019-Q3MaterialisedAnnual report
「Compared with the previous fiscal year, net sales increased due to higher sales volumes and rising steel market prices. Profit declined due to lower profit margins and an increase in the provision for doubtful accounts. As a result, sales to external customers were ¥3,420.9 million, up 19.0% year on year, while segment profit was ¥572 million, down 41.6%.」
In the Kanto and Tohoku areas, the increase in the provision for doubtful accounts emerged as a factor depressing segment profit. While sales increased 19.0% year on year, segment profit declined 41.6%. - FY2019-Q2MaterialisedAnnual report
「In terms of profit and loss, although net sales increased, operating income was ¥2,769 million, down 6.6% year on year, ordinary income was ¥2,841 million, down 7.5%, and net income attributable to owners of the parent was ¥1,873 million, down 12.3%, due to an increase in the provision for doubtful accounts.」
The increase in the provision for doubtful accounts actually emerged as a factor depressing operating income, ordinary income and quarterly net income despite higher sales. The provision for doubtful accounts increased from ¥2 million in the same period of the previous year to ¥615 million. - FY2019-Q1MaterialisedAnnual report
「In terms of profit and loss, operating income was ¥1,059 million, down 19.8% year on year, ordinary income was ¥1,104 million, down 20.6%, and net income attributable to owners of the parent was ¥735 million, down 25.8%, due to a decline in profit margins resulting from higher inventory unit prices and an increase in the provision for doubtful accounts.」
The increase in the provision for doubtful accounts was identified as an actual factor behind the decline in earnings, showing that customer credit and bad-debt risk affected profit and loss. - FY2018RestatedAnnual report
「We set credit limits for all approximately 3,000 customers, review them regularly and work to reduce bad-debt risk, but this does not guarantee full collection.」
It continues to state that credit limits are set for approximately 3,000 customers and reviewed regularly, and that full collection is not guaranteed. - FY2016First statedAnnual report
「We set credit limits for all approximately 3,000 customers, review them regularly and work to reduce bad-debt risk, but this does not guarantee full collection.」
It indicates that the company holds trade receivables from approximately 3,000 customers and that default may occur due to customer bankruptcies and other factors.