Inventory Risks from Demand Forecast Errors and Product Obsolescence
First written in FY2016. 15 of 31 entries say "Worsened", first in FY2022-Q2. Latest entry: 2026-11-05.
Nintendo moved to the "Worse" side of this theme in 2018, 5 years before the typical company in this theme (2023).
The whole theme swung hardest in 2026: 24 of 44 companies on the "Worse" side.
15 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「During the consolidated fiscal year, the Group reported inventories of ¥539,804 million on its consolidated balance sheet, including a raw-materials write-down of ¥17,237 million and a finished-goods write-down of ¥23,118 million.」
Inventories increased from ¥486.428 billion at the end of the previous fiscal year to ¥539.804 billion, with a raw-materials write-down of ¥17.237 billion and a finished-goods write-down of ¥23.118 billion recorded. Both the inventory balance and write-downs remain high. - FY2026-H1WorsenedAnnual report
「Inventories 486,428 492,696」
Inventories increased from ¥486.428 billion at the end of the previous consolidated fiscal year to ¥492.696 billion at the end of the interim consolidated accounting period, and the inventory balance remains high. - FY2025WorsenedAnnual report
「During the consolidated fiscal year, the Group reported inventories of ¥486,428 million on its consolidated balance sheet, including a raw-materials write-down of ¥12,221 million and a finished-goods write-down of ¥15,760 million.」
Inventories increased substantially from ¥155,987 million at the end of the previous fiscal year to ¥486,428 million, and write-downs were recorded for both raw materials and finished goods. Demand forecasting errors and obsolescence risks have become more pronounced in both the balance and write-downs. - FY2025-H1WorsenedAnnual report
「Although profit before income taxes for the interim period was ¥147.0 billion, cash flows from operating activities decreased ¥12.6 billion (compared with an increase of ¥216.9 billion in the same period of the previous year), mainly due to an increase in inventories and income tax payments.」
Inventories increased from ¥155.987 billion at the end of the previous consolidated fiscal year to ¥264.155 billion at the end of the interim consolidated accounting period, contributing to the ¥12.6 billion decrease in cash flows from operating activities. The impact of inventory risk on the balance sheet and cash flows has expanded. - FY2024Decrease in inventory balance and increase in write-downsAnnual report
「During the consolidated fiscal year, the Group reported inventories of ¥155,987 million on its consolidated balance sheet. Of this amount, finished goods accounted for ¥89,638 million, including a finished-goods write-down of ¥20,289 million.」
Although the inventory balance decreased from ¥258,628 million in the previous fiscal year to ¥155,987 million, the finished-goods write-down was ¥20,289 million. Inventory build-up eased, but write-downs continued to be recorded. - FY2024-Q3MitigatedAnnual report
「Inventories 258,628 173,556」
Inventories decreased from ¥258.628 billion at the end of March 2023 to ¥173.556 billion at the end of December 2023. The inventory build-up that had previously materialized eased during the quarter. - FY2024-Q2WorsenedAnnual report
「Inventories 258,628 317,285」
Inventories increased from ¥258.628 billion at the end of March 2023 to ¥317.285 billion at the end of September 2023. The inventory balance continues to expand, and demand forecasting and finished-goods obsolescence risks have materialized as an increase in the asset balance. - FY2024-Q1WorsenedAnnual report
「Inventories 258,628 262,754」
Inventories increased from ¥258.628 billion at the end of March 2023 to ¥262.754 billion at the end of June 2023, and the inventory balance continues to expand. - FY2023WorsenedAnnual report
「During the consolidated fiscal year, the Group reported inventories of ¥258,628 million on its consolidated balance sheet. Of this amount, finished goods accounted for ¥182,837 million, including a finished-goods write-down of ¥16,909 million.」
Inventories increased from ¥204,183 million at the end of the previous fiscal year to ¥258,628 million, while the finished-goods write-down was ¥16,909 million. Demand forecasting and obsolescence risks continue to materialize through increases in both the inventory balance and write-downs. - FY2023-Q3MitigatedAnnual report
「Inventories 204,183 203,828」
Inventories decreased slightly from ¥204.183 billion at the end of the previous consolidated fiscal year to ¥203.828 billion at the end of the third quarter. They also decreased from ¥295.347 billion at the end of the previous quarter, indicating that inventory build-up eased during the quarter. - FY2023-Q2WorsenedAnnual report
「Inventories 204,183 295,347」
Inventories increased from ¥204.183 billion at the end of the previous consolidated fiscal year to ¥295.347 billion at the end of the second quarter. The inventory balance continues to expand. - FY2023-Q1WorsenedAnnual report
「Inventories 204,183 256,241」
Inventories increased from ¥204.183 billion at the end of the previous consolidated fiscal year to ¥256.241 billion at the end of the first quarter, indicating that inventory risk has materialized as an increase in the balance. - FY2022WorsenedAnnual report
「During the consolidated fiscal year, the Group reported inventories of ¥204,183 million on its consolidated balance sheet. Of this amount, finished goods accounted for ¥96,301 million, including a finished-goods write-down of ¥14,256 million.」
Inventories increased from ¥86,817 million at the end of the previous fiscal year to ¥204,183 million, while the finished-goods write-down was ¥14,256 million. Inventory risk has materialized as increases in both the balance and write-downs. - FY2022-Q3MitigatedAnnual report
「Inventories 86,817 169,256」
Inventories increased from ¥86.817 billion at the end of the previous consolidated fiscal year to ¥169.256 billion, while decreasing from the previous quarter-end level. Inventory build-up has eased from the previous quarter, but remains above the level at the end of the same period of the previous year. - FY2022-Q2WorsenedAnnual report
「Although profit before income taxes for the quarter was ¥239.5 billion, cash flows from operating activities increased ¥3.1 billion (compared with an increase of ¥244.0 billion in the same period of the previous year) due to factors including an increase in inventories and income tax payments.」
Inventories increased from ¥86.817 billion at the end of the previous consolidated fiscal year to ¥270.131 billion, limiting the increase in cash flows from operating activities to ¥3.1 billion. The impact of inventory risk on both the balance sheet and cash flows has become more significant. - FY2022-Q1MaterialisedAnnual report
「Inventories 86,817 157,707」
Inventories increased from ¥86.817 billion at the end of the previous consolidated fiscal year to ¥157.707 billion. The adoption of the revenue recognition accounting standard resulted in a ¥42.690 billion increase in inventories. - FY2021Increase in write-downs and slight decrease in inventory balanceAnnual report
「During the consolidated fiscal year, the Group reported inventories of ¥86,817 million on its consolidated balance sheet. Of this amount, finished goods accounted for ¥70,544 million, including a finished-goods write-down of ¥12,762 million.」
Although the inventory balance decreased from ¥88,994 million in the previous fiscal year to ¥86,817 million, the inventory write-down for the period was ¥4.364 billion and the finished-goods write-down was ¥12.762 billion. - FY2021-Q3MitigatedAnnual report
「Inventories 88,994 82,229」
Inventories decreased from ¥88.994 billion at the end of the previous consolidated fiscal year to ¥82.229 billion, also contracting from the level reported at the end of the previous quarter. Inventory build-up eased during the quarter. - FY2021-Q2MaterialisedAnnual report
「Although profit before income taxes for the quarter was ¥299.9 billion, cash flows from operating activities increased ¥244.0 billion (compared with an increase of ¥3.9 billion in the same period of the previous year) due to factors including increases in trade payables and other items, offset by factors including increases in inventories, as well as income tax payments.」
Inventories increased from ¥88.994 billion at the end of March 2020 to ¥140.691 billion at the end of September 2020 and were explicitly cited as a factor reducing cash flows from operating activities. - FY2020MitigatedAnnual report
「The main factor was a ¥102.6 billion increase in inventories from the previous fiscal year, primarily due to an increase in finished-goods inventories and other factors.」
Inventories for the period totaled ¥88.994 billion, down from ¥135.470 billion in the previous fiscal year. The inventory write-down also decreased from ¥10.414 billion to ¥3.927 billion, indicating that the manifestation of inventory build-up and obsolescence has eased. - FY2020-Q3MitigatedAnnual report
「Inventories 135,470 100,151」
Inventories decreased from ¥217.103 billion at the end of the previous consolidated fiscal year to ¥100.151 billion. They also decreased from ¥217.103 billion at the end of the second quarter cited in the previous filing, indicating that inventory build-up has eased. However, there is no statement that the risk has disappeared. - FY2020-Q2MaterialisedAnnual report
「Although cash and deposits decreased, total assets increased ¥86.7 billion from the end of the previous consolidated fiscal year to ¥1.777 trillion, mainly due to increases in inventories and investment securities.」
Inventories increased from ¥135.470 billion at the end of the previous consolidated fiscal year to ¥217.103 billion, indicating that demand forecasting and inventory risks materialized as asset growth. The increase in inventories was also cited as a factor reducing cash flows from operating activities. - FY2019MaterialisedAnnual report
「The inventory write-down was ¥10,414 million.」
An inventory write-down of ¥10.414 billion was recorded, indicating that demand forecasting and inventory obsolescence risks have materialized as losses. Inventories at period-end totaled ¥135.470 billion. - FY2019-Q2MaterialisedAnnual report
「Although profit before income taxes for the quarter was ¥91.5 billion, cash flows from operating activities decreased ¥116.4 billion (compared with an increase of ¥42.4 billion in the same period of the previous year) due to adjustments for the impact of increased inventories and other factors, as well as income tax payments.」
The increase in inventories was reflected as an actual factor reducing cash flows from operating activities, which decreased ¥116.4 billion. Inventories increased from ¥141.795 billion at the end of the previous fiscal year to ¥326.066 billion, while finished-goods inventories increased from ¥129.483 billion to ¥300.886 billion. - FY2018MaterialisedAnnual report
「The main factor was a ¥102.6 billion increase in inventories from the previous fiscal year, primarily due to an increase in finished-goods inventories and other factors.」
Inventories increased ¥102.6 billion year on year to ¥141.795 billion at period-end. In addition, the inventory write-down for the period was ¥4.832 billion, indicating that demand forecasting and inventory obsolescence risks have materialized as actual inventory growth and write-downs. - FY2017RestatedAnnual report
「Because accurate sales forecasts are difficult, there is a risk of holding excess inventory. In addition, obsolescence of inventories held may adversely affect operating results and financial condition.」
The potential impact of demand forecast errors, excess inventory and product obsolescence is reiterated. - FY2016First statedAnnual report
「Because accurate sales forecasts are difficult, there is a risk of holding excess inventory. In addition, obsolescence of inventories held may adversely affect operating results and financial condition.」
The inventory valuation loss for the current fiscal year was ¥4.981 billion, resulting in a loss associated with inventory valuation.