Risks related to slow-moving inventory and inventory write-downs
First written in FY2021. 12 of 15 entries say "Worsened", first in FY2022-Q3. Latest entry: FY2026.
A&D HOLON Holdings moved to the "Worse" side of this theme in 2022, 1 year before the typical company in this theme (2023).
The whole theme swung hardest in 2018: 3 of 7 companies on the "Worse" side.
7 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「These inventory amounts are stated after deducting valuation losses of ¥1,826 million for the previous consolidated fiscal year and ¥1,895 million for the current consolidated fiscal year, respectively.」
Total inventories increased from ¥20,003 million to ¥20,776 million, while valuation losses also increased from ¥1,826 million to ¥1,895 million. Uncertainty related to slow-moving inventory and valuation is increasing. - 2026-05-13WorsenedEarnings
「This was due to a ¥3,624 million increase in current assets, mainly notes and accounts receivable, contract assets, and merchandise and finished goods.」
Merchandise and finished goods increased from ¥9,758 million to ¥11,153 million, and total inventories also increased from the end of the previous fiscal year. - FY2026-H1WorsenedAnnual report
「This was mainly due to income tax payments of ¥1,295 million and an increase in inventories of ¥1,956 million, while trade receivables declined by ¥3,199 million and interim net income before income taxes and other adjustments was ¥2,774 million.」
Inventories increased by ¥1,956 million during the interim period. The inventory balance also increased from the end of the previous fiscal year, mainly in merchandise, finished goods and work in progress, expanding exposure to slow-moving inventory and valuation issues. - FY2025WorsenedAnnual report
「These inventory amounts are stated after deducting valuation losses of ¥1,555 million for the previous consolidated fiscal year and ¥1,826 million for the current consolidated fiscal year, respectively.」
Although the inventory balance itself declined slightly from ¥20,112 million to ¥20,003 million, valuation losses increased from ¥1,555 million to ¥1,826 million, indicating heightened risks related to slow-moving inventory and valuation. - FY2025-H1WorsenedAnnual report
「This was due mainly to income taxes paid of ¥1,705 million and an increase in inventories of ¥1,195 million, while trade receivables decreased by ¥4,052 million and interim pretax income was ¥3,179 million, among other factors.」
Inventories increased by ¥1,195 million during the interim period. The inventory balance also increased from the end of the previous fiscal year, and exposure to slow-moving inventory and valuation issues is expanding again. - FY2024MitigatedAnnual report
「These inventories are stated after deducting valuation losses of ¥1,713 million in the previous consolidated fiscal year and ¥1,555 million in the current consolidated fiscal year.」
Inventories decreased from ¥20,266 million to ¥20,112 million, while valuation losses decreased from ¥1,713 million to ¥1,555 million. Although accumulation and valuation risks remain, both the balance and valuation losses declined from the previous fiscal year. - FY2024-Q3WorsenedAnnual report
「Merchandise and finished goods 8,941 9,666 Work in process 5,047 5,685 Raw materials and supplies 6,278 6,046」
Merchandise and finished goods and work in process increased from the end of the fiscal year, bringing total inventories to approximately ¥21,397 million from ¥20,266 million. Exposure to inventory accumulation and valuation risk has increased again. - FY2024-Q2Slower Growth in InventoriesAnnual report
「This was due mainly to a ¥1,592 million increase in current assets, resulting from increases in cash and deposits and merchandise and finished goods, among other factors.」
Although inventories such as merchandise and finished goods increased from the end of the fiscal year, the increase in inventories reflected in operating cash flow was ¥319 million, a smaller increase than the ¥2,358 million recorded in the same period of the previous year. - FY2024-Q1WorsenedAnnual report
「Merchandise and finished goods 8,941 10,066 Work in process 5,047 5,729 Raw materials and supplies 6,278 6,253」
Total inventories of merchandise and finished goods, work in process, raw materials and other items increased by ¥1,782 million, from ¥20,266 million at the end of the previous fiscal year to ¥22,048 million. No new valuation loss was disclosed. - FY2023-Q3WorsenedAnnual report
「Total assets at the end of the third quarter of the current consolidated fiscal year were ¥68,125 million, an increase of ¥8,886 million from the end of the previous consolidated fiscal year. This was mainly due to an ¥8,099 million increase in current assets, resulting from an increase in inventories caused by longer transportation times stemming from the weaker yen and supply-chain disruptions, among other factors.」
Inventories increased against a backdrop of longer transportation times caused by the weaker yen and supply-chain disruptions, driving an ¥8,099 million increase in current assets. Exposure to inventory accumulation and valuation risk has increased further. - FY2023-Q2WorsenedAnnual report
「This was due mainly to an increase of ¥2,358 million in inventories accumulated in preparation for future sales growth and income taxes paid of ¥796 million, while pretax income was ¥2,227 million, trade receivables decreased by ¥1,462 million, and depreciation and amortization was ¥821 million, among other factors.」
Inventories increased in preparation for future sales growth and against a backdrop of longer transportation times, with the increase for the cumulative second quarter amounting to ¥2,358 million. Exposure to accumulation and valuation risk has increased. - FY2023-Q1WorsenedAnnual report
「This was mainly due to a ¥4,747 million increase in current assets, resulting from an increase in inventories caused by longer transportation times stemming from the weaker yen and supply-chain disruptions, among other factors.」
Inventories increased against a backdrop of longer transportation times caused by the weaker yen and supply-chain disruptions, increasing exposure to accumulation and valuation risk. - FY2022WorsenedAnnual report
「Total inventories were ¥16,582 million. These amounts are stated after deducting valuation losses of ¥1,497 million in the previous consolidated fiscal year and ¥1,542 million in the current consolidated fiscal year.」
The inventory balance increased from ¥12,448 million to ¥16,582 million, while valuation losses increased from ¥1,497 million to ¥1,542 million. Uncertainty in valuations related to advance component purchases and expected future sales and usage has increased. - FY2022-Q3WorsenedAnnual report
「To address tight supplies of components, the Company placed advance orders for materials. As a result, cash and deposits decreased by ¥1,343 million, while work in process increased by ¥1,942 million and raw materials and supplies increased by ¥1,343 million.」
In response to tight component supplies, the Company placed advance orders for materials, increasing work in process by ¥1,942 million and raw materials and supplies by ¥1,343 million. Exposure to inventory accumulation and valuation risk has increased. - FY2021First statedAnnual report
「The amount of these inventories is stated after deducting a valuation loss of ¥1,497 million, most of which relates to inventories held by the Company.」
A valuation loss of ¥1,497 million has been deducted from inventories of ¥12,448 million. The Company has described for the first time the uncertainty of valuation based on slow-moving inventory, expected future sales and quantities expected to be discarded as a significant accounting estimate.