Inventory Valuation Risk Associated with Make-to-Stock Production
First written in FY2016. 21 of 25 entries say "Restated". Latest entry: FY2026.
Sigma Koki moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2026: 22 of 40 companies on the "Worse" side.
15 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「However, if a matter arises due to sudden changes in environmental standards, the business environment or other factors that causes shortages of such inventories and prevents timely responses to customer demand, or materially affects the valuation of such inventories or otherwise, it could materially affect the performance and financial position of the Group.」
In addition to the existing inventory valuation risk, the Company has explicitly identified the risk of being unable to respond to customer demand in a timely manner because of shortages, thereby broadening the scope of inventory-related risks. - FY2026-H1RestatedAnnual report
「There were no newly arising business or other risks during the interim consolidated accounting period. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was identified regarding inventory valuation risk associated with make-to-stock production. - FY2023RestatedAnnual report
「However, if a matter arises due to sudden changes in environmental standards, the business environment or other factors that materially affect the valuation of such inventories or otherwise, it could materially affect the performance and financial position of the Group.」
The Company continues to disclose the risks of holding inventory under make-to-stock production and of inventory valuation being affected by sudden changes in environmental standards or the business environment. Although the inventory balance increased, no impairment loss was recognized during the year. - FY2023-Q3RestatedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was identified regarding inventory valuation risk associated with make-to-stock production. - FY2023-Q2RestatedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was identified regarding inventory valuation risk associated with make-to-stock production. - FY2023-Q1RestatedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
It was stated that there had been no new occurrence or material change regarding inventory valuation risk associated with make-to-stock production. - FY2022Greater specificity in inventory valuation estimatesAnnual report
「Regarding write-downs based on declining profitability, at the end of each consolidated fiscal year, when the estimated net realizable value, based mainly on historical selling prices and order conditions over a certain period, falls below book value, we primarily write down the book value at the Company to that estimated net realizable value.」
The Company disclosed specific inventory valuation estimation methods using net realizable value, turnover and holding periods, and sales plans, as well as the possibility of additional losses if assumptions change. - FY2022-Q1RestatedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding inventory valuation risk associated with make-to-stock production. - FY2021RestatedAnnual report
「We sell a wide variety of standardized products through catalogs and maintain substantial inventories because we carry out planned production based on demand forecasts for optical basic equipment products, automated application products, and optical elements and thin-film products to ensure timely delivery in line with customer orders. However, if an event occurs as a result of sudden changes in environmental standards, the business environment or other factors that has a material impact on the valuation of these inventories, it could have a material impact on the Sigma Koki Group's operating results and financial position.」
The Company reaffirmed the risk of holding substantial inventories from planned production and the risk to inventory valuation from sudden changes in the environment and business environment. - FY2021-Q3RestatedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding inventory valuation risk associated with make-to-stock production. - FY2021-Q2RestatedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding inventory valuation risk associated with make-to-stock production. - FY2021-Q1RestatedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding inventory valuation risk associated with make-to-stock production. - FY2020-Q3RestatedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding inventory valuation risk associated with make-to-stock production. - FY2019MaterialisedAnnual report
「As a result of increases in material costs and outsourced processing costs associated with increased orders for made-to-order products with a high proportion of externally sourced materials and highly complex projects with demanding specifications, as well as the recognition of inventory valuation losses on slow-moving inventory, the cost of sales ratio increased 2.2 percentage points from the previous consolidated fiscal year to 59.4%.」
The disclosure stated that inventory valuation losses on slow-moving inventory had actually been recognized in connection with the inventory valuation risk associated with planned production and inventory holdings. - FY2019-Q3RestatedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding inventory valuation risk associated with make-to-stock production. - FY2019-Q2RestatedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding inventory valuation risk associated with make-to-stock production. - FY2019-Q1RestatedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding inventory valuation risk associated with make-to-stock production. - FY2018RestatedAnnual report
「We sell a wide variety of standardized products through catalogs and maintain substantial inventories because we carry out planned production based on demand forecasts for optical basic equipment products, automated application products, and optical elements and thin-film products to ensure timely delivery in line with customer orders. However, sudden changes in environmental standards, the business environment and other factors could have a material impact on inventory valuation and other matters.」
The Company reiterated the risk of holding substantial inventories from planned production and the risk to inventory valuation from sudden changes in environmental standards and the business environment. - FY2018-Q3RestatedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding inventory valuation risk associated with make-to-stock production. - FY2018-Q2RestatedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding inventory valuation risk associated with make-to-stock production. - FY2018-Q1RestatedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding inventory valuation risk associated with make-to-stock production. - FY2017-Q3RestatedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding inventory valuation risk associated with make-to-stock production. - FY2017-Q2RestatedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding inventory valuation risk associated with make-to-stock production. - FY2017-Q1RestatedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding inventory valuation risk associated with make-to-stock production. - FY2016First statedAnnual report
「We sell a wide variety of standardized products through catalogs and maintain substantial inventories because we produce optical basic equipment products, automated application products, and optical elements and thin-film products to ensure timely delivery in line with customer orders. Consequently, sudden changes in environmental standards, the business environment and other factors could have a material impact on inventory valuation and other matters.」
Inventory holdings arising from catalog sales and make-to-stock production are identified as factors that may be affected by changes in environmental standards and the business environment.