Reducing Working Capital Tied Up Through Early Monetization of Accounts Receivable
First written in FY2019. 2 of 17 entries say "Advanced", first in FY2020. Latest entry: FY2026.
The whole theme swung hardest in 2018: 2 of 6 companies on the "Worse" side.
0 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Cash flows from operating activities for the fiscal year were an inflow of ¥5,705 million, as inflows from profit before income taxes and increases in trade payables exceeded outflows from increases in trade receivables and other factors. Inflows increased by ¥1,725 million from the previous fiscal year.」
Regarding working capital reduction through the accelerated financing of trade receivables and other measures, cash flow from operating activities improved from an outflow of ¥3.980 billion in the previous period to an inflow of ¥5.705 billion, and short-term borrowings also decreased. However, trade receivables themselves increased. - 2026-05-14AdvancedEarnings presentation
「Improved CCC (105 days at 25/3-end ⇒ 97 days at 26/3-end)」
CCC improved from 105 days to 97 days in connection with the early conversion of accounts receivable into cash and the reduction of working capital. As trade receivables and inventories increased, this represents progress in asset efficiency rather than the elimination of the working capital burden. - FY2025-H1Continued partial reversal of the working capital reduction effectAnnual report
「At the end of the interim consolidated accounting period, total assets increased by ¥320.4 million from the end of the previous fiscal year to ¥8.2088 billion. This was mainly due to a ¥588.3 million increase in trade receivables and a ¥227.2 million decrease in consumption tax receivables, among other factors.” Cash flow from operating activities for the interim consolidated accounting period was an outflow of ¥4.190 billion, as outflows from increases in trade receivables, among other factors, exceeded inflows from increases in trade payables and decreases in consumption tax receivables, among other factors. The outflow decreased by ¥858 million from the previous interim consolidated accounting period.」
In contrast to the direction of accelerated financing of trade receivables and working capital reduction indicated for the previous period, trade receivables increased and cash flow from operating activities remained an outflow. However, the size of the outflow narrowed from the same period of the previous year. - FY2024MitigatedAnnual report
「Cash flows from operating activities for the fiscal year were an inflow of ¥5,740 million, as inflows mainly from decreases in trade receivables and inventories exceeded outflows mainly from an increase in consumption tax receivables.」
Regarding working capital reduction through the accelerated financing of trade receivables and the contraction of the volume business, trade receivables and inventories decreased and operating activities generated ¥5.740 billion. Short-term borrowings also decreased by ¥2.869 billion from the end of the previous fiscal year. - FY2024-Q3Coexistence of lower trade receivables and higher borrowingsAnnual report
「Total assets at the end of the nine-month period increased by ¥1,204 million from the end of the previous fiscal year to ¥79,806 million. This was mainly due to an increase of ¥3,774 million in consumption tax receivables, decreases of ¥1,132 million in trade receivables and ¥1,054 million in cash and deposits. Liabilities at the end of the nine-month period decreased by ¥139 million from the end of the previous fiscal year to ¥44,209 million. This was mainly due to decreases of ¥3,194 million in trade payables and ¥779 million in accrued corporate taxes, and an increase of ¥3,543 million in short-term borrowings.」
Although trade receivables decreased, short-term borrowings increased, and the figures do not indicate that the working capital reduction attributed to the accelerated financing of trade receivables and the contraction of the volume business proceeded across the board. - FY2024-Q2Continued working capital burdenAnnual report
「Cash flow from operating activities for the six months ended the second quarter was an outflow of ¥5.049 billion, as outflows from increases in trade receivables, among other factors, exceeded inflows from profit before income taxes and increases in trade payables, among other factors. The outflow decreased by ¥760.9 million from the six months ended the second quarter of the previous fiscal year.」
Although the outflow from operating activities narrowed from the same period of the previous year, cash flow from operating activities was an outflow of ¥5.049 billion due to increases in trade receivables, among other factors. With trade receivables, merchandise and short-term borrowings also increasing, the working capital burden continues. - FY2024-Q1Continued expansion of the working capital burdenAnnual report
「At the end of the first quarter, total assets increased by ¥451.8 million from the end of the previous fiscal year to ¥8.312 billion. This was mainly due to a ¥214.6 million increase in trade receivables and a ¥275.7 million increase in merchandise, among other factors. Liabilities increased by ¥391.7 million from the end of the previous fiscal year to ¥4.8265 billion. This was mainly due to a ¥134.3 million increase in trade payables and a ¥238.1 million increase in short-term borrowings, among other factors.」
Although the company had targeted working capital reduction through the accelerated financing of trade receivables and the contraction of the volume business, trade receivables, merchandise and short-term borrowings increased, and the funding burden and external financing continued to expand. - FY2023-Q3Continued expansion of the working capital burdenAnnual report
「At the end of the third quarter, total assets increased by ¥2.0085 billion from the end of the previous fiscal year to ¥9.2894 billion. This was mainly due to a ¥973.1 million increase in trade receivables, a ¥704.6 million increase in merchandise and a ¥452.3 million increase in consumption tax receivables, among other factors. Liabilities increased by ¥1.7356 billion from the end of the previous fiscal year to ¥5.9481 billion. This was mainly due to a ¥1.7986 billion increase in short-term borrowings, among other factors.」
Although the company had targeted working capital reduction through the accelerated financing of trade receivables and the contraction of the volume business, trade receivables, merchandise and short-term borrowings increased, and the funding burden and external financing continued to expand. - FY2023-Q2Increase in working capital requirementsAnnual report
「Cash flow from operating activities for the six months ended the second quarter was an outflow of ¥12.658 billion, as outflows from increases in trade receivables and inventories, among other factors, exceeded inflows from increases in trade payables, among other factors. The outflow increased by ¥11.029 billion from the six months ended the second quarter of the previous fiscal year.」
Although the company had targeted working capital reduction through the accelerated financing of trade receivables and the contraction of the volume business, cash flow from operating activities was an outflow of ¥12.658 billion due to increases in trade receivables and inventories, increasing the funding burden. - FY2023-Q1Continued expansion in working capital needsAnnual report
「At the end of the first quarter, total assets increased by ¥1.144 billion from the end of the previous fiscal year to ¥8.425 billion. This was mainly due to a ¥496 million increase in trade receivables and a ¥616.5 million increase in merchandise, among other factors. Liabilities increased by ¥993.2 million from the end of the previous fiscal year to ¥5.2057 billion. This was mainly due to a ¥230.1 million increase in trade payables and a ¥748.2 million increase in short-term borrowings, among other factors.」
Although the company had targeted working capital reduction, trade receivables, merchandise and short-term borrowings increased, and the funding burden and external financing continued to expand. - FY2022-Q3Continued funding burden from lower cash and higher inventoryAnnual report
「Total assets at the end of the nine-month period decreased by ¥12,543 million from the end of the previous fiscal year to ¥72,059 million. This was mainly due to a decrease of ¥16,120 million in cash and deposits and an increase of ¥4,184 million in merchandise.」
Although the company had targeted working capital reduction, cash and deposits decreased by ¥16.120 billion and merchandise increased by ¥4.184 billion, indicating that the funding burden continued. - FY2022-Q2Continued working capital needsAnnual report
「This was mainly due to a ¥16.505 billion decrease in cash and deposits and a ¥2.662 billion increase in trade receivables, among other factors.” Cash flow from operating activities for the six months ended the second quarter was an outflow of ¥1.628 billion, as outflows from increases in trade receivables and inventories exceeded inflows from decreases in consumption tax receivables, among other factors.」
Although the company had targeted working capital reduction through the accelerated financing of trade receivables and the contraction of the volume business, cash flow from operating activities was an outflow during the quarter due to increases in trade receivables and inventories. - FY2022-Q1Partial reversal of the working capital reduction effectAnnual report
「This was mainly due to a ¥2.961 billion decrease in consumption tax receivables, a ¥1.727 billion decrease in trade receivables, a ¥2.214 billion increase in merchandise and a ¥952 million increase in cash and deposits.」
Trade receivables decreased by ¥1.727 billion, indicating continued movement toward working capital reduction from the end of the previous period, while merchandise increased by ¥2.214 billion. The figures do not indicate that the working capital reduction attributed to the contraction of the volume business and the accelerated financing of trade receivables proceeded across the board. - FY2021-Q3Continued expansion in working capital needsAnnual report
「Total assets at the end of the nine-month period increased by ¥3,326 million from the end of the previous fiscal year to ¥76,985 million. This was mainly due to an increase of ¥9,150 million in trade receivables, a decrease of ¥3,216 million in merchandise and a decrease of ¥2,191 million in cash and deposits. Liabilities increased by ¥4,100 million from the end of the previous fiscal year to ¥35,730 million. This was mainly due to an increase of ¥4,373 million in short-term borrowings.」
Trade receivables and short-term borrowings increased, and funding needs in the opposite direction to the working capital reduction attributed to the contraction of the volume business and the accelerated financing of trade receivables described for the previous period have continued. - FY2021-Q2Reversal of the working capital reduction effectAnnual report
「This was mainly due to a ¥5.526 billion increase in trade receivables, a ¥448 million increase in investment securities, a ¥2.052 billion decrease in consumption tax receivables and a ¥434 million decrease in cash and deposits.」
During the quarter, trade receivables increased by ¥5.526 billion, while cash flow from operating activities was an outflow of ¥3.971 billion. Funding needs have emerged in the opposite direction to the working capital reduction attributed to the contraction of the volume business and the accelerated financing of trade receivables described for the previous period. - FY2020AdvancedAnnual report
「At the same time, the company has reduced its volume business in the device business, enabling it to reduce working capital and monetize trade receivables earlier, while maintaining its equity ratio above a certain level.」
The company explained that it reduced its volume business and accelerated the financing of trade receivables, resulting in lower trade receivables, reduced borrowings and an equity ratio of 57.0%. - FY2019First statedAnnual report
「At the same time, the company expects to reduce working capital by reviewing its volume business in the device business and monetizing trade receivables earlier, thereby maintaining an equity ratio above a certain level and ensuring financial soundness.」
The company first identified specific measures to reduce working capital by reviewing its volume business and monetizing trade receivables earlier, while maintaining an equity ratio above a certain level and financial soundness.