Lengthening of the Accounts Receivable Collection Period and Deterioration in Operating Cash Flow Associated with the Introduction of Shopping Credit with a Collection Guarantee
First written in FY2019. 7 of 12 entries say "Mitigated", first in FY2021-Q2. Latest entry: FY2026-H1.
Yamano Holdings moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2022: 9 of 32 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「This was mainly attributable to interim pretax income of ¥67 million, a ¥234 million decrease in accounts receivable, a ¥78 million decrease in inventories, a ¥396 million decrease in advances received, depreciation of ¥40 million, amortization of goodwill of ¥43 million, and income taxes paid of ¥113 million.」
Accounts receivable decreased by ¥234 million, and cash flow from operating activities generated ¥45 million. The impact of the increase in accounts receivable due to the lengthening collection period associated with shopping credit has decreased. - FY2025MitigatedAnnual report
「Cash provided by operating activities was ¥384 million (compared with cash provided of ¥209 million in the previous fiscal year). This was mainly attributable to a ¥417 million decrease in accounts receivable.」
Accounts receivable decreased by ¥417 million, and cash flow from operating activities increased from cash provided of ¥209 million in the previous fiscal year to ¥384 million. The impact of the lengthening collection period associated with shopping credit has decreased. - FY2025-H1MitigatedAnnual report
「Cash provided by operating activities was ¥129 million (compared with cash provided of ¥199 million in the same period of the previous year). This was mainly attributable to a pretax interim loss of ¥17 million, a ¥439 million decrease in accounts receivable, a ¥193 million decrease in accounts payable, and an ¥89 million decrease in advances received.」
Trade receivables decreased by ¥439 million, and cash flow from operating activities generated ¥129 million. Although cash provided decreased year on year, the impact of the increase in accounts receivable associated with the lengthening collection period was lower. - FY2024-Q2MitigatedAnnual report
「Cash provided by operating activities was ¥199 million (compared with cash used of ¥120 million in the same quarter of the previous year). This was mainly attributable to pretax income of ¥10 million, a ¥352 million increase in accounts payable, a ¥53 million increase in inventories, and a ¥105 million decrease in advances received.」
Cash flow from operating activities shifted from cash used of ¥120 million in the same period of the previous year to cash provided of ¥199 million, improving the working capital burden from the previous year. - FY2024-Q1MitigatedAnnual report
「The objective is to prepare for a lengthening collection period for trade receivables by promoting the expanded use of shopping credit with collection guarantees in the kimono and jewelry business, while stabilizing cash flow over the medium to long term and strengthening the financial base.」
To prepare for a lengthening collection period for trade receivables, the Company established a funding facility to support the expanded use of shopping credit and took measures to stabilize cash flow over the medium to long term and strengthen its financial base. - FY2023MitigatedAnnual report
「Cash used in operating activities was ¥108 million (compared with cash used of ¥1,264 million in the previous fiscal year). This was mainly attributable to pretax income of ¥148 million, a ¥94 million increase in accounts receivable due to the promotion of shopping credit with collection guarantees, a ¥127 million decrease in advances received as delivery of ordered products was accelerated, a ¥119 million decrease in accounts payable, and a ¥16 million decrease in other items.」
Although accounts receivable continued to increase, cash used in operating activities decreased from ¥1,264 million in the previous fiscal year to ¥108 million. - FY2022WorsenedAnnual report
「Cash used in operating activities was ¥1,264 million (compared with cash provided of ¥940 million in the previous fiscal year). This was mainly attributable to pretax income of ¥121 million, a ¥76 million decrease in accounts payable, a ¥716 million decrease in accrued expenses, a ¥476 million decrease in other items, and a ¥150 million increase in accounts receivable.」
Accounts receivable increased by ¥150 million, and cash flow from operating activities deteriorated from cash provided of ¥940 million in the previous fiscal year to cash used of ¥1,264 million. - FY2021-Q2MitigatedAnnual report
「Cash used in operating activities was ¥45 million (compared with cash used of ¥649 million in the same quarter of the previous year).」
Cash used in operating activities decreased from ¥649 million in the same quarter of the previous year to ¥45 million, while the increase in accounts receivable was limited to ¥22 million. The burden on operating cash flow from the lengthening collection period associated with the introduction of shopping credit was lower than in the same quarter of the previous fiscal year. - FY2020WorsenedAnnual report
「Cash used in operating activities was ¥875 million, compared with ¥153 million in the previous fiscal year. This was mainly due to pretax net income of ¥104 million, a ¥550 million increase in trade receivables resulting from the longer collection period associated with promoting collection-guaranteed shopping credit, a ¥220 million decrease in trade payables because the end of the previous consolidated fiscal year fell on a holiday, and a ¥209 million decrease in advances received due to efforts to accelerate the delivery of ordered products in the traditional apparel and jewelry business.」
Due to a lengthening collection period for trade receivables, accounts receivable increased by ¥550 million, and cash outflows from operating activities increased from ¥153 million to ¥875 million. - FY2020-Q3WorsenedAnnual report
「The impact of increased use of collection-guaranteed shopping credit included a ¥346 million decrease in cash and deposits and a ¥453 million increase in notes and accounts receivable.」
The increase in accounts receivable accompanying increased use of shopping credit amounted to ¥453 million, indicating a greater working capital burden due to longer collection periods. - FY2020-Q2WorsenedAnnual report
「Cash used in operating activities was ¥649 million, compared with ¥150 million in the same quarter of the previous year. This was mainly due to pretax quarterly net income of ¥100 million, a ¥181 million increase in trade receivables resulting from the longer collection period associated with promoting collection-guaranteed shopping credit, a ¥251 million decrease in trade payables because the end of the previous consolidated fiscal year fell on a holiday, and a ¥292 million decrease in advances received due to efforts to accelerate the delivery of ordered products in the traditional apparel and jewelry business.」
The longer collection period for accounts receivable accompanying the promotion of collection-guaranteed shopping credit resulted in a ¥181 million increase in trade receivables, while cash used in operating activities increased from ¥150 million in the same period of the previous year to ¥649 million. - FY2019MaterialisedAnnual report
「The increase in trade receivables resulted from longer collection periods for accounts receivable following the introduction of collection-guaranteed shopping credit. Until the collection of these receivables has run its course and stabilized, operating cash flow is expected to remain negative for the time being due to the increase in trade receivables.」
The longer collection period for accounts receivable following the introduction of shopping credit appeared as a ¥153 million operating cash outflow associated with the increase in trade receivables, and the company indicated that negative cash flow is expected to continue for the time being.