A Wide Range of Inventory to Support Immediate Delivery and the Risk of Excess Inventory
First written in FY2017. 2 of 5 entries say "Restated". Latest entry: FY2025.
Naito & moved to the "Worse" side of this theme in 2023, 1 year after 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".
- FY2025WorsenedAnnual report
「Changes in product market conditions may result in excess inventory, potentially restricting cash flow and affecting the Company's operating results and financial position through the recognition of inventory valuation losses. In addition, if the Company is unable to take appropriate measures, such as passing on increases in product procurement prices and expenses including transportation costs resulting from rising prices, to its selling prices, its operating results and financial position may be affected.」
In addition to the existing risks of excess inventory and valuation losses associated with a wide range of inventories, the Company newly specified the risk of being unable to pass increases in procurement prices and transportation costs on to selling prices. - FY2023ReframedAnnual report
「To establish a system for immediate delivery in response to customers' diverse product needs, the Company maintains a wide range of inventories, particularly of cutting tools. Changes in market conditions may result in excess inventory, restrict cash flow and affect the Company's operating results and financial position through the recognition of inventory valuation losses.」
The risks associated with immediate delivery and a wide range of inventories remain, but the description of customer needs changed from the previous "small quantities at high frequency" to "diverse product needs." - FY2019RestatedAnnual report
「To establish a system for immediate delivery in response to customers' demand for small quantities at high frequency, the Company maintains a wide range of inventories, particularly of cutting tools. Changes in market conditions may result in excess inventory, restrict cash flow and affect the Company's operating results and financial position through the recognition of inventory valuation losses.」
The Company continues to indicate the risks of excess inventory, restricted cash flow and inventory valuation losses associated with the wide range of inventories supporting immediate delivery. - FY2018RestatedAnnual report
「To establish a system for immediate delivery in response to customers' demand for small quantities at high frequency, the Company maintains a wide range of inventories, particularly of cutting tools. Changes in market conditions may result in excess inventory, restrict cash flow and affect the Company's operating results and financial position through the recognition of inventory valuation losses.」
The Company continues to disclose the risks of excess inventory, restricted cash flow and inventory valuation losses associated with the wide range of inventories supporting immediate delivery. - FY2017First statedAnnual report
「To establish a system for immediate delivery in response to customers' demand for small quantities at high frequency, the Company maintains a wide range of inventories, particularly of cutting tools. Changes in market conditions may result in excess inventory, restrict cash flow and affect the Company's operating results and financial position through the recognition of inventory valuation losses.」
The Company indicates that the wide range of inventories supporting immediate delivery for small-quantity, high-frequency demand may lead to excess inventory and inventory valuation losses.