Stagnant Inventory and Stockout Risk
First written in FY2018. 7 of 13 entries say "Worsened", first in FY2022. Latest entry: 2026-08-04.
Mtg moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 15 of 42 companies on the "Worse" side.
13 other companies' latest entry also says "Worsened".
- 2026-08-04WorsenedResults
「商品及び製品の増加14,228百万円」
商品及び製品残高が前年度末の19,141百万円から33,370百万円へ増加し、在庫負担がさらに拡大した。 - FY2026-H1WorsenedAnnual report
「This was mainly attributable to increases of ¥2,454 million in notes and accounts receivable, ¥6,339 million in merchandise and finished goods, and ¥3,078 million in construction in progress, despite a decrease of ¥2,352 million in cash and deposits.」
Merchandise and finished goods increased by ¥6,339 million from the end of the previous fiscal year, bringing the balance from ¥19,141 million to ¥25,481 million. The burden on operating cash flow from the increase in inventory also expanded. - FY2025WorsenedAnnual report
「Merchandise and finished goods 13,465 19,141」
The balance of merchandise and finished goods increased from ¥13,465 million at the end of the previous fiscal year to ¥19,141 million, and the company recognized an inventory valuation loss of ¥379 million in the current fiscal year. Inventory management is treated as a key audit matter. - FY2024WorsenedAnnual report
「This was mainly attributable to a decrease of ¥3,176 million in cash and deposits and increases of ¥1,014 million in notes and accounts receivable, ¥2,854 million in merchandise and finished goods, and ¥1,327 million in tools, fixtures and equipment, net.」
Merchandise and finished goods increased by ¥2,854 million, from ¥10,611 million at the end of the previous fiscal year to ¥13,465 million, and the impact of the increase in inventories on operating cash flow was ¥3,039 million. - FY2023WorsenedAnnual report
「This was mainly attributable to increases of ¥1,178 million in notes and accounts receivable and ¥956 million in merchandise and finished goods, and a decrease of ¥670 million in raw materials and supplies,」
Merchandise and finished goods increased by ¥956 million, from ¥9,654 million at the end of the previous fiscal year to ¥10,611 million, and the inventory balance continued to increase. - FY2023-Q3WorsenedAnnual report
「This was mainly attributable to increases of ¥801 million in notes and accounts receivable and ¥1,785 million in merchandise and finished goods.」
Merchandise and finished goods increased by ¥1,785 million from the end of the previous consolidated fiscal year, bringing the inventory balance from ¥9,654 million to ¥11,440 million. - FY2022WorsenedAnnual report
「This was mainly attributable to increases of ¥877 million in cash and deposits, ¥543 million in notes and accounts receivable, ¥1,643 million in merchandise and finished goods, and ¥703 million in investment securities, and a decrease of ¥402 million in raw materials and supplies.」
Merchandise and finished goods increased by ¥1,643 million, and operating activities also recorded a ¥1,212 million decrease in funds due to the increase in inventories. - FY2021Change in inventory valuation criteria and discontinuation of additional write-downsAnnual report
「In light of the recent inventory holdings, the stabilization of sales performance based on the recovery in business performance and other conditions, we judged that applying the same assumptions from the current fiscal year onward could result in excessive write-downs. Accordingly, from the beginning of the current consolidated fiscal year, we have not used assumptions based on the most recent sales performance. As a result, we discontinued the additional reduction of carrying amounts.」
In light of the recovery in business performance and the stabilization of sales performance, the company discontinued additional write-downs. The impact of the change in valuation criteria on operating profit and other items was ¥1,357 million, and the inventory valuation loss became a reversal gain of ¥3,193 million. - FY2021-Q3Increase in the impact of the change in the inventory valuation methodAnnual report
「As a result, compared with the previous method, cost of sales for the cumulative third quarter of the current consolidated fiscal year decreased by ¥1,086 million, while operating profit, ordinary profit and profit before income taxes for the quarter each increased by ¥1,086 million.」
The company continued to apply the method for estimating the holding period that it changed from the first quarter, and the impact on profit for the cumulative third quarter was ¥1,086 million. - FY2021-Q2Increase in the impact of the change in the inventory valuation methodAnnual report
「As a result, compared with the previous method, cost of sales for the cumulative second quarter of the current consolidated fiscal year decreased by ¥915 million, while operating profit, ordinary profit and profit before income taxes for the quarter each increased by ¥915 million.」
The company continued to apply the method for estimating the holding period that it changed from the first quarter and disclosed an impact of ¥915 million on profit for the cumulative second quarter. - FY2021-Q1Change in the inventory valuation methodAnnual report
「As a result, compared with the previous method, cost of sales for the cumulative first quarter of the current consolidated fiscal year decreased by ¥637 million, while operating profit, ordinary profit and profit before income taxes for the quarter each increased by ¥637 million.」
The company changed its method for estimating the holding period of inventory to an accounting estimate that more appropriately reflects the fact that profitability has declined. It disclosed that the impact of the change on profit was ¥637 million. - FY2020MitigatedAnnual report
「In addition, operating profit was ¥1,219 million, due mainly to the reduction of slow-moving inventory and the effects of company-wide expense reductions, compared with an operating loss of ¥14,421 million in the previous consolidated fiscal year.」
The company reduced slow-moving inventory, and the inventory valuation loss of ¥7,044 million in the previous fiscal year became a reversal gain of ¥2,042 million. It states that its response to inventory risk also contributed to improved performance. - FY2018First statedAnnual report
「We seek to minimize inventory risk by monitoring inventory levels, adjusting production and order quantities each month, and developing additional sales initiatives for products expected to become slow-moving.」
The company identifies lost sales opportunities from stockouts caused by inaccurate demand forecasts and slow-moving inventory as risks, and addresses them through monthly production and order adjustments and additional sales initiatives.