Bad Debt Risk from Economic Deterioration and Increased Personal Bankruptcies
First written in FY2017. 9 of 19 entries say "Mitigated", first in FY2021-Q2. Latest entry: 2026-07-31.
Orient 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 2022: 6 of 17 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- 2026-07-31MitigatedEarnings
「Credit-related costs are trending downward as tighter credit standards and a strengthened collection structure have had the desired effect.」
Tighter credit standards and a stronger collection structure at the overseas subsidiaries have resulted in a downward trend in credit-related costs. - FY2026MitigatedAnnual report
「In Japan during the current consolidated fiscal year, delinquent receivables did not increase significantly despite continued price increases, against a backdrop of improvements in employment and income conditions. The company assumes that these conditions will not change rapidly in the following consolidated fiscal year, and has calculated the allowance for doubtful accounts on the assumption that the expected loss rate will not increase significantly.」
Domestic delinquent receivables did not increase significantly despite rising prices, and the allowance for doubtful accounts declined from ¥135,216 million in the previous year to ¥134,747 million. - 2026-05-15MitigatedEarnings
「Credit-related costs are trending downward as tighter credit standards and a strengthened collection structure have had the desired effect.」
Tighter credit standards and a stronger collection structure in the overseas business resulted in a downward trend in credit-related costs. - FY2026-H1MitigatedAnnual report
「In the overseas business, transaction value at the 3 overseas subsidiaries combined declined year on year as the company tightened credit standards to contain credit loss-related expenses. The company will continue working to build a portfolio of high-quality receivables by strengthening its collection systems and tightening credit standards, while pursuing stable growth through a thorough strengthening of its governance framework.」
The company states that credit loss-related expenses at its overseas subsidiaries declined as it tightened credit standards and strengthened collection systems in the overseas business. - FY2024-Q3WorsenedAnnual report
「Delinquent receivables increased in every country, and the company is focusing on rebuilding its business foundations, including strengthening its credit and collection systems to contain credit loss-related expenses. Selling, general and administrative expenses increased by ¥5.3 billion year on year to ¥146.3 billion, mainly due to an increase in the provision for doubtful accounts accompanying the rise in delinquent receivables in Japan and overseas.」
Delinquent receivables increased in Japan and overseas, particularly in overseas markets, and the resulting increase in the provision for doubtful accounts raised selling, general and administrative expenses by ¥5.3 billion year on year. - FY2024-Q2MaterialisedAnnual report
「Selling, general and administrative expenses increased by ¥4.9 billion year on year to ¥98.1 billion, mainly due to an increase in the provision for doubtful accounts accompanying the rise in delinquent receivables in Japan and overseas.」
The increase in delinquent receivables in Japan and overseas led to a higher provision for doubtful accounts, raising selling, general and administrative expenses by ¥4.9 billion year on year. - FY2024-Q1MaterialisedAnnual report
「Selling, general and administrative expenses increased by ¥3.3 billion year on year to ¥49.4 billion, mainly due to an increase in the provision for doubtful accounts accompanying the rise in delinquent receivables in Japan and overseas.」
The increase in delinquent receivables in Japan and overseas and the resulting increase in the provision for doubtful accounts actually occurred, raising selling, general and administrative expenses by ¥3.3 billion year on year. - FY2023Higher provision for doubtful accounts, no significant increase in delinquenciesAnnual report
「The company expects delinquencies to increase as personal consumption recovers following the reclassification of COVID-19 under the Infectious Diseases Control Act and other factors. However, in the current fiscal year, consumer spending increased only moderately due partly to the impact of higher prices, and delinquent receivables did not increase significantly. Personal consumption is also expected to recover moderately in the next fiscal year, and the allowance for doubtful accounts has been calculated on the assumption that the expected loss rate will not increase significantly.」
Although delinquent receivables did not increase significantly, the provision for doubtful accounts increased, and the allowance for the following fiscal year was calculated on the assumption of a moderate recovery in personal consumption. - FY2023-Q3WorsenedAnnual report
「In credit-related expenses, although the provision for loan losses increased, the provision for interest refund losses decreased due to the decline in interest refunds and other factors. As a result, credit-related expenses decreased by ¥2.6 billion year on year.」
Expenses related to refunds of excess interest payments declined, while the provision for doubtful accounts increased, and credit risk-related provisions continued to rise. - FY2023-Q2WorsenedAnnual report
「In credit-related expenses, although the provision for loan losses increased, the provision for interest refund losses decreased due to the decline in interest refunds and other factors. As a result, credit-related expenses decreased by ¥2.9 billion year on year.」
Expenses related to refunds of excess interest payments declined, while the provision for doubtful accounts increased, and provisions related to credit risk continued to rise. - FY2023-Q1WorsenedAnnual report
「In credit-related expenses, although the provision for loan losses increased, the provision for interest refund losses decreased due to the decline in interest refunds and other factors. As a result, credit-related expenses decreased by ¥700 million year on year.」
While the provision for losses on interest refunds declined, the provision for doubtful accounts increased, resulting in a reported increase in some credit risk-related expenses. - FY2022-Q3MitigatedAnnual report
「In credit-related expenses, although the provision for loan losses decreased as newly delinquent loans remained low amid continued subdued consumer spending, the provision for interest refund losses increased with the increase in interest refunds. As a result, credit-related expenses increased year on year.」
Delinquent receivables remained low despite subdued consumer spending, and the provision for doubtful accounts declined. This was distinguished from the increase in provisions related to refunds of excess interest payments. - FY2022-Q1MitigatedAnnual report
「The provision for doubtful accounts declined year on year, partly because delinquent receivables remained low amid lower consumer spending and other factors.」
Delinquent receivables remained low, and the provision for doubtful accounts declined year on year. Meanwhile, the company continues to monitor the impact of COVID-19. - FY2021MitigatedAnnual report
「In the fiscal year ended March 2021, delinquent receivables did not increase, partly because consumer spending remained low throughout the year.」
Delinquent receivables did not increase despite the pandemic, and the allowance for doubtful accounts declined year on year. - FY2021-Q3MitigatedAnnual report
「Credit loss-related expenses declined year on year, partly because delinquent receivables decreased amid lower consumer spending. The company will continue to monitor the impact of COVID-19 on credit loss-related expenses.」
Credit loss-related expenses declined year on year, partly because delinquent receivables decreased. Meanwhile, the company continues to monitor the impact of COVID-19. - FY2021-Q2MitigatedAnnual report
「Credit loss-related expenses were lower year on year, partly because delinquent receivables declined amid lower consumer spending and increased income resulting from special benefit payments and other factors. The company will continue to monitor the impact of COVID-19 on credit loss-related expenses.」
Credit loss-related expenses declined year on year, partly because delinquent receivables decreased, while the company continues to monitor the impact of COVID-19. - FY2021-Q1RestatedAnnual report
「The impact of COVID-19 on credit loss-related expenses is limited at present, but the company will continue to monitor developments closely.」
Although the impact of COVID-19 on credit loss-related expenses is currently limited, the company continues to monitor developments. - FY2020MaterialisedAnnual report
「In light of the worsening impact of COVID-19 in Japan and overseas, the company has made additional provisions for doubtful accounts by estimating future losses based on current conditions. If the impact of COVID-19 worsens further, it may become necessary to increase the allowance for doubtful accounts.」
The risk had previously assumed economic deterioration and rising personal bankruptcies, but additional provisions for doubtful accounts were actually recognized in response to COVID-19. - FY2017First statedAnnual report
「To cover bad debt losses on installment receivables and other assets, the company recognizes the estimated uncollectible amount for general receivables based on historical bad debt rates, and for specific receivables such as receivables at risk of default, after considering recoverability on an individual basis. However, economic trends, an increase in personal bankruptcy filings and other unforeseen factors may make it necessary to increase the allowance for doubtful accounts.」
The company identifies the risk of additional provisions for doubtful accounts due to economic trends and an increase in personal bankruptcy filings as a separate risk.