Credit Risk Associated with Long-Term, Generally Unsecured Credit Extension
First written in FY2016. 9 of 17 entries say "Materialised", first in FY2020-Q3. Latest entry: FY2026.
Tokyo Century moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
The whole theme swung hardest in 2019: 6 of 14 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The allowance for doubtful accounts recorded on the consolidated balance sheet at the end of the consolidated fiscal year was ¥11,705 million, compared with ¥6,469 million at the end of the previous consolidated fiscal year.」
Regarding credit risk, the allowance for doubtful accounts increased from ¥6,469 million in the previous fiscal year to ¥11,705 million. - 2026-05-11WorsenedEarnings
「Downside risks to the economy also remain, including continued inflation, serious labor shortages and volatile foreign exchange markets, and we expect conditions to remain uncertain going forward.」
Identifies inflation, labor shortages, foreign exchange markets and changes in customers' credit conditions as downside risks to the earnings forecast. - FY2024-Q1MaterialisedAnnual report
「Selling, general and administrative expenses increased by ¥4,600 million, or 14.5%, year on year to ¥36,000 million. The main factor was higher credit loss expenses on aircraft-related receivables.」
Higher credit loss expenses on aircraft-related receivables were actually recorded as the factor behind the ¥4,600 million, or 14.5%, year-on-year increase in selling, general and administrative expenses. - FY2023MaterialisedAnnual report
「The company determined that the loans and loan guarantees were unlikely to be recovered and recorded the full amount of ¥28,954 million as an extraordinary loss.」
Credit risk materialized as the expected non-recovery of loans and loan guarantees to a Russian-registered airline, and a credit loss of ¥28,954 million was recorded. - FY2023-Q3MaterialisedAnnual report
「In light of these circumstances, the company determined that the loans and loan guarantees were unlikely to be recovered and recorded the full amount of ¥28,222 million as an extraordinary loss.」
Regarding credit risk, loans and loan guarantees to 1 Russian-registered airline were deemed unrecoverable, and ¥28,222 million was actually recorded as a credit loss. - FY2022-Q3MitigatedAnnual report
「Selling, general and administrative expenses decreased by ¥2,900 million, or 3.3%, year on year to ¥84,500 million. The main factors were a decline in credit loss expenses on aircraft-related and other receivables, resulting in a reversal gain, and reductions in operating costs, including personnel expenses, in the car rental business.」
Credit loss expenses on aircraft-related and other receivables declined and resulted in a reversal gain, with a reduction in the cost burden associated with credit risk also confirmed for the cumulative third quarter period. - FY2022-Q2MitigatedAnnual report
「Selling, general and administrative expenses decreased by ¥4,300 million, or 7.2%, year on year to ¥55,500 million. The main factors were a decline in credit loss expenses on aircraft-related and other receivables, resulting in a reversal gain, and reductions in operating costs, including personnel expenses, in the car rental business.」
Credit loss expenses on aircraft-related and other receivables declined and resulted in a reversal gain, reducing the cost burden associated with credit risk from the previous corresponding period. - FY2022-Q1MitigatedAnnual report
「Selling, general and administrative expenses decreased by ¥4,800 million, or 15.0%, year on year to ¥27,400 million. The main factors were a decline in credit loss expenses on aircraft-related and other receivables, resulting in a reversal gain, and reductions in operating costs, including personnel expenses, in the car rental business.」
Credit loss expenses on aircraft-related and other receivables declined and resulted in a reversal gain, reducing the impact of credit risk on performance from the previous corresponding period. - FY2021MaterialisedAnnual report
「Selling, general and administrative expenses increased by ¥4,244 million, or 3.5%, year on year to ¥123,827 million. The main factors were higher credit loss expenses, primarily on ship- and aircraft-related receivables, and an increase associated with the consolidation of Aviation Capital Group LLC as a subsidiary.」
Regarding credit risk, higher credit loss expenses, primarily on ship- and aircraft-related receivables, were actually recorded as a factor behind the increase in full-year selling, general and administrative expenses. - FY2021-Q3MaterialisedAnnual report
「Selling, general and administrative expenses increased by ¥2,734 million, or 3.2%, year on year to ¥87,463 million. The main factors were higher credit loss expenses on aircraft-related receivables and an increase associated with the consolidation of ACG subsidiaries.」
Higher credit loss expenses on aircraft-related receivables were also actually recorded as a factor behind the increase in selling, general and administrative expenses during the cumulative third quarter period. - FY2021-Q2MaterialisedAnnual report
「Selling, general and administrative expenses increased by ¥4,732 million, or 8.6%, year on year to ¥59,743 million. The main factors were higher credit loss expenses on aircraft-related receivables and an increase associated with the consolidation of ACG subsidiaries.」
Higher credit loss expenses on aircraft-related receivables were actually recorded as a factor behind the increase in selling, general and administrative expenses, and the impact of credit risk has continued. - FY2021-Q1MaterialisedAnnual report
「Selling, general and administrative expenses increased by ¥4.993 billion, or 18.4%, year on year, to ¥32.169 billion. The main factors were higher allowance expenses for aircraft-related receivables, as well as an increase associated with the consolidation of ACG as a subsidiary.」
Higher credit loss expenses on aircraft-related receivables were recorded as an actual factor behind the increase in selling, general and administrative expenses, with the impact of credit risk reflected in quarterly results. - FY2020MaterialisedAnnual report
「During the consolidated fiscal year, credit loss expenses were recorded on receivables from customers, including those in the transportation industry, affected by the spread of COVID-19.」
Regarding credit risk, the company states that credit loss expenses were actually recorded on receivables from customers affected by COVID-19. - FY2020-Q3MaterialisedAnnual report
「Profit from equity-method investments in the aircraft-related business declined due to the recognition of an impairment loss following the bankruptcy of a major business partner.」
The bankruptcy of a credit customer actually occurred, affecting performance through the recognition of an impairment loss and a decline in profit from equity-method investments in the aircraft-related business. - FY2018RestatedAnnual report
「Although the Group seeks to minimize credit risk by carefully managing credit, assessing properties, and controlling credit risk in its operating-asset portfolio, depending on future economic trends, deterioration in customers’ credit conditions may result in new non-performing receivables and affect the Group’s performance.」
The company has reconfirmed the risk of non-performing receivables arising from deteriorating credit conditions and its response through credit management, property assessments, and portfolio management. - FY2017RestatedAnnual report
「Lease transactions and similar activities involve extending generally unsecured credit to customers for a relatively long period, averaging approximately 5 years, and expected profitability is secured only after all lease payments and other amounts have been collected from customers.」
The company has reiterated the credit risk associated with long-term, generally unsecured credit extension and its response through credit and portfolio management. - FY2016First statedAnnual report
「Lease transactions and similar activities involve extending generally unsecured credit to customers for a relatively long period, averaging approximately 5 years, and expected profitability is secured only after all lease payments and other amounts have been collected from customers.」
The company identifies the deterioration of corporate credit conditions due to economic trends and the potential emergence of new non-performing receivables.