Risk of customer default and breach of contract
First written in FY2017. 9 of 16 entries say "Worsened", first in FY2021-Q1. Latest entry: FY2026-H1.
Marubeni 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 2023: 8 of 30 companies on the "Worse" side.
9 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「Provision for doubtful accounts △ 4,998 △ 1,867」
The provision for doubtful accounts decreased from ¥4.998 billion in the same period of the previous year to ¥1.867 billion, reducing the interim-period loss burden associated with credit risk. - FY2025WorsenedAnnual report
「Provision for the current period 19,941」
The provision for doubtful accounts relating to trade receivables and loans for the current fiscal year was ¥19.941 billion, up from ¥13.555 billion in the previous fiscal year. Meanwhile, the provision balance at the end of the fiscal year was ¥51.176 billion. - FY2025-H1MitigatedAnnual report
「The provision for doubtful accounts was ¥4,998 million.」
The provision for doubtful accounts for the current interim consolidated accounting period was ¥4.998 billion, down from ¥6.537 billion in the same period of the previous year. The interim-period results for losses associated with credit risk have been updated. - FY2024WorsenedAnnual report
「The provision for doubtful accounts was ¥8,288 million.」
The provision for doubtful accounts for the current fiscal year was ¥8.288 billion, up from ¥5.981 billion in the previous fiscal year. The balance of provisions for doubtful accounts relating to trade receivables and loans was ¥53.853 billion. - FY2024-Q3WorsenedAnnual report
「Provision for doubtful accounts △ 3,762 △ 7,961」
For the nine months ended the third quarter, the provision for doubtful accounts increased from ¥3.762 billion in the same period of the previous year to ¥7.961 billion, indicating a higher loss burden associated with counterparty credit risk. - FY2024-Q2WorsenedAnnual report
「The provision for doubtful accounts increased by ¥2.2 billion, or 51.6%, year on year, to ¥6.5 billion.」
The provision for doubtful accounts increased from ¥4.2 billion in the same period of the previous year to ¥6.5 billion, indicating a higher loss burden associated with counterparty credit risk. - FY2024-Q1WorsenedAnnual report
「Provision for doubtful accounts △ 3,366」
The provision for doubtful accounts increased from ¥2,004 million in the same period of the previous year to ¥3,366 million, indicating a higher loss burden associated with counterparty credit risk. - FY2023RestatedAnnual report
「To prevent the credit risk described above, our basic credit management policy is to establish a “credit limit,” the maximum amount of credit extended to a single counterparty, after assessing the counterparty’s credit standing, the profitability and strategic fit of the transaction, and other factors, and to operate within that limit.」
The Company reconfirmed its basic credit management policy of setting credit limits for counterparty credit risk and operating within those limits. - FY2023-Q3MaterialisedAnnual report
「Lifestyle: quarterly profit decreased by ¥0.8 billion year on year to ¥3.4 billion. This decrease was attributable to bad debt expenses on transactions involving apparel and other products, as well as one-time losses related to the planning, manufacturing and sale of apparel and other products, despite higher profit in the tire and rubber materials business.」
With respect to credit risk related to counterparty defaults, bad debt expenses on transactions involving apparel and other products actually arose as a factor reducing profit in the Lifestyle business. - FY2023-Q2WorsenedAnnual report
「The provision for doubtful accounts increased by ¥3.4 billion, or 390.5%, year on year, to ¥4.2 billion.」
The provision for doubtful accounts related to counterparty credit risk increased 390.5% year on year to ¥4.2 billion, continuing to rise from the previous first quarter. - FY2023-Q1WorsenedAnnual report
「The provision for doubtful accounts increased by ¥1.1 billion, or 116.2%, year on year, to ¥2.0 billion.」
The provision for doubtful accounts related to counterparty credit risk increased 116.2% year on year to ¥2.0 billion. - FY2022-Q2MitigatedAnnual report
「The provision for doubtful accounts decreased by ¥2.1 billion, or 70.6%, year on year, to ¥0.9 billion.」
The provision for doubtful accounts related to credit risk decreased 70.6% year on year to ¥0.9 billion. - FY2022-Q1MitigatedAnnual report
「The provision for doubtful accounts decreased by ¥1.1 billion, or 54.1%, year on year, to ¥0.9 billion.」
The provision for doubtful accounts related to credit risk decreased 54.1% year on year to ¥0.9 billion. - FY2021-Q3WorsenedAnnual report
「The provision for doubtful accounts increased by ¥0.3 billion, or 8.2%, year on year, to ¥3.3 billion.」
The provision for doubtful accounts related to counterparty credit risk increased 8.2% year on year to ¥3.3 billion for the nine months ended the third quarter. - FY2021-Q1WorsenedAnnual report
「The provision for doubtful accounts increased by ¥1.2 billion, or 145.3%, year on year, to ¥2.0 billion.」
The provision for doubtful accounts related to counterparty defaults increased 145.3% year on year, indicating a higher loss burden associated with credit risk. - FY2017First statedAnnual report
「The Company and its consolidated subsidiaries extend credit to counterparties in the form of trade receivables, advance payments, loans, guarantees and other arrangements. In addition, as part of their business activities, they enter into contracts with counterparties, including product supply agreements, construction contracts and service agreements. If they incur credit exposure, or credit risk, due to counterparty default or breach of contract, this could adversely affect the operating results and financial position of the Company and its consolidated subsidiaries.」
The Company disclosed credit provided through trade receivables, advance payments, loans and guarantees, as well as credit risk arising from counterparty default and breach of contract, as a separate risk.