Risk of Inventory Write-Downs Associated with Holding Inventory
First written in FY2020. 9 of 19 entries say "Worsened", first in FY2021-Q2. Latest entry: FY2026.
As One moved to the "Worse" side of this theme in 2020, 2 years before 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".
- FY2026WorsenedAnnual report
「Inventories increased from ¥11,717 million at the end of the previous fiscal year to ¥12,409 million.」
Inventories increased by ¥691 million from the end of the previous fiscal year, expanding the amount of inventory held subject to write-down risk. - FY2026-H1WorsenedAnnual report
「Inventories increased by ¥691 million」
Inventories increased by ¥691 million from the end of the previous fiscal year, from ¥11,717 million to ¥12,409 million. The amount of inventory held subject to write-down risk increased. - FY2025WorsenedAnnual report
「In the consolidated balance sheet for the fiscal year ended March 2025, inventories were ¥11,717 million, equivalent to 11.7% of total assets.」
Inventories increased from ¥10,831 million in the previous fiscal year to ¥11,717 million, expanding the amount of inventory held subject to write-down risk. Measures to limit risk through disclosure of suppliers' inventory continued. - FY2025-H1MitigatedAnnual report
「Through more sophisticated inventory simulation analysis, the number of physical inventory items increased 9% from the end of the same quarter of the previous year, with almost no increase in the inventory value on the balance sheet.」
By enhancing inventory simulation analysis, the company increased the number of physical inventory items by 9% from the end of the same quarter of the previous year with almost no increase in inventory value, thereby improving inventory-holding efficiency. Inventories stood at ¥11,313 million. - FY2024MitigatedAnnual report
「In the consolidated balance sheet for the fiscal year ended March 2024, inventories were ¥10,831 million, equivalent to 11.3% of total assets. In cooperation with suppliers, we also disclose some information on suppliers' inventory and have introduced a system that allows customers to place orders with confidence even when we have no inventory, thereby improving convenience while limiting inventory risk.」
Inventories declined from the previous fiscal year to ¥10,831 million, equivalent to 11.3% of total assets. The company continued measures to limit its own inventory risk by using virtual inventory based on disclosure of suppliers' inventory. - FY2024-Q2Increase in InventoryAnnual report
「Inventories 11,007,670 11,184,529」
Inventories increased from ¥11,007 million at the end of the previous consolidated fiscal year to ¥11,184 million. Although no inventory write-down was reported, the amount of inventory held subject to write-down risk increased. - FY2023MitigatedAnnual report
「In the consolidated balance sheet for the fiscal year ended March 2023, inventories were ¥11,007 million, equivalent to 11.3% of total assets. We also disclose some information on suppliers' inventory and have introduced a system that allows customers to place orders with confidence even when we have no inventory, thereby improving convenience while limiting inventory risk.」
Inventories were ¥11,007 million, equivalent to 11.3% of total assets. As a measure to address inventory risk, the company explicitly stated that it uses virtual inventory based on disclosure of suppliers' inventory. - FY2023-Q3MitigatedAnnual report
「As inventory of some infection-control products whose profitability had deteriorated amid supply-demand disruption caused by the COVID-19 pandemic was normalized, the gross margin exceeded that of the same quarter of the previous year by 2.1 percentage points and broadly recovered to pre-pandemic levels.」
Inventory of some infection-control products whose profitability had deteriorated was normalized, and the gross margin rose 2.1 percentage points year on year, broadly recovering to pre-pandemic levels. Inventories themselves increased to ¥11,122 million. - FY2023-Q2MitigatedAnnual report
「While a write-down of just under ¥400 million was recorded at the end of the same quarter of the previous year on inventory whose profitability had deteriorated, the turnover and clearance of the affected inventory helped restore profitability. The gross margin exceeded that of the same quarter of the previous year by 2.7 percentage points and returned to pre-pandemic levels.」
The inventory subject to the write-down recorded in the previous year turned over and was cleared, with the gross margin rising 2.7 percentage points year on year and returning to pre-pandemic levels. - FY2023-Q1MitigatedAnnual report
「As inventory whose profitability had deteriorated in the previous fiscal year was cleared, the gross margin exceeded that of the same quarter of the previous year by 0.8 percentage points and returned to pre-pandemic levels.」
As inventory whose profitability had deteriorated in the previous fiscal year was cleared, the gross margin rose 0.8 percentage points year on year and returned to pre-pandemic levels. The impact of deteriorating profitability from inventory write-downs eased. - FY2022-Q3MitigatedAnnual report
「Although the decline in profitability, including this factor, caused the gross margin for the third quarter to fall 2.6 percentage points below the same quarter of the previous year to 29.2%, the gross margin for the third-quarter consolidated accounting period returned to the 30% range as inventories subject to write-downs were reduced or eliminated, and profitability is on a recovery trend.」
Although the impact of inventory write-downs associated with falling prices for infection-control products remained, the gross margin returned to the 30% range in the third quarter as inventories subject to write-downs were reduced or eliminated, and profitability was described as being on a recovery trend. - FY2022-Q2MaterialisedAnnual report
「As for profitability, shortages of some infection-control products had caused retail prices to surge along with our procurement prices compared with the previous year, but retail prices fell rapidly during the second quarter. During the COVID-19 pandemic, our group has prioritized the stable supply of medical products and supplies and has secured several months of safety stock for these product categories. As a result, profitability deteriorated for some procured inventory, including products whose inventory value exceeded their selling price, pushing down the overall gross margin. Accordingly, at the end of the second quarter we recorded a write-down of just under ¥400 million on products whose inventory value exceeded their selling price. As a result, the gross margin temporarily fell to 28.7%, down 2.4 percentage points year on year. However, our procurement prices have also declined in parallel with retail prices, so the impact is temporary and profitability is expected to normalize as inventory turns over.」
The sharp decline in retail prices for infection-control products led to a write-down of just under ¥400 million on products whose inventory value exceeded their selling price, reducing the gross margin by 2.4 percentage points to 28.7%. The company expects the impact to be temporary and profitability to normalize as inventory turns over, as procurement prices have also declined. - FY2022-Q1WorsenedAnnual report
「This was mainly attributable to an increase of ¥1,006 million in inventories, decreases of ¥2,696 million in notes and accounts receivable, ¥2,500 million in securities due to redemption, and ¥1,260 million in cash and deposits, among other factors.」
Inventories increased by ¥1,006 million from the end of the previous consolidated fiscal year to ¥9,980 million. The amount of inventory held to support same-day shipment increased further. - FY2021WorsenedAnnual report
「In the consolidated balance sheet for the fiscal year ended March 2021, our group reported ¥8,974 million in inventories, equivalent to 9.5% of total assets.」
Inventories increased from ¥7,056 million in the previous fiscal year to ¥8,974 million, while the ratio to total assets rose to 9.5%. The inventory level supporting the high same-day shipment rate and the associated write-down risk both increased. - FY2021-Q3WorsenedAnnual report
「This was mainly attributable to increases of ¥2,736 million in cash and deposits and ¥1,815 million in electronically recorded monetary claims, an increase of ¥1,500 million in securities due to mature within one year as a result of a reclassification from fixed assets, and an increase of ¥1,107 million in inventories, among other factors.」
Inventories increased by ¥1,107 million from the end of the previous consolidated fiscal year to ¥8,164 million. The amount of inventory held for same-day shipment increased further. - FY2021-Q2WorsenedAnnual report
「This was mainly attributable to decreases in notes and accounts receivable and electronically recorded monetary claims, increases in cash and deposits, an increase of ¥2,500 million in securities nearing maturity due to a reclassification from fixed assets, and an increase of ¥872 million in inventories, among other factors.」
Inventories increased by ¥872 million from the end of the previous consolidated fiscal year, from ¥7,056 million to ¥7,928 million. No inventory write-down was reported. - FY2020First statedAnnual report
「In the consolidated balance sheet for the fiscal year ended March 2020, our group reported ¥7,056 million in inventories, equivalent to 8.7% of total assets.」
The company disclosed for the first time, as a separate item, the structure of holding forecast inventory for same-day shipment and the risk of inventory write-downs if sales differ from expectations.