Inventory Write-Down Risk in the Industrial Equipment Business
First written in FY2021. 2 of 5 entries say "Mitigated", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2026: 23 of 41 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Merchandise and finished goods 1,441 876」
The amount subject to significant accounting estimates for merchandise and finished goods in the Industrial Equipment Business decreased from ¥1,441 million in the previous fiscal year to ¥876 million. The inventory write-down was ¥36 million. - FY2025MitigatedAnnual report
「Merchandise and finished goods 2,174 1,441」
The amount subject to significant accounting estimates for merchandise and finished goods in the Industrial Equipment Business decreased from ¥2,174 million in the previous fiscal year to ¥1,441 million. The inventory write-down also decreased from ¥40 million in the previous fiscal year to ¥37 million. - FY2024Updated the carrying amount and write-down amount for industrial equipment productsAnnual report
「Merchandise and finished goods ¥2,672 million ¥2,174 million; write-down due to lower profitability of inventories held for ordinary sales purposes cost of sales ¥64 million ¥40 million」
The amount subject to valuation for merchandise and finished goods in the Industrial Equipment Business decreased from ¥2,672 million to ¥2,174 million, and the inventory write-down was ¥40 million. - FY2023Quantified the carrying amounts of industrial equipment products and merchandise inventoriesAnnual report
「Merchandise and finished goods 1,902 2,672」
As a significant accounting estimate, the Company disclosed that merchandise and finished goods in the industrial equipment business increased from ¥1,902 million to ¥2,672 million. The amount of the write-down due to lower profitability was ¥64 million for the fiscal year. - FY2021First statedAnnual report
「In the industrial equipment business, the Group works to maintain stable supply and appropriate inventory levels by considering economic trends in customer industries and supply conditions at suppliers. However, if order volumes fail to reach forecasts due to changes in economic trends or if products undergo model changes, the Group’s financial position, operating results and cash flows may be materially affected by inventory write-downs and other factors resulting from lower profitability.」
The Company first identified as a separate major risk the risk of excess inventory and write-downs arising from economic fluctuations in the industrial equipment business, orders falling short of expectations and product model changes.