Credit risk associated with the allowance for doubtful accounts and the balance of non-performing receivables
First written in FY2017-Q2. 12 of 34 entries say "Worsened", first in FY2021-Q2. Latest entry: 2026-07-31.
NEC Capital Solutions Limited moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 6 of 17 companies on the "Worse" side.
9 other companies' latest entry also says "Worsened".
- 2026-07-31WorsenedFinancial results presentation
「一般引当の増加等により、与信関連費用は前年同期比3億円増加」
営業資産の拡大に伴い、与信関連費用が前年同期比で増加したと開示した。一方で、成長投資とリスク管理の両立も併記している。 - FY2026WorsenedAnnual report
「Allowance for doubtful accounts ¥12,726 million ¥14,040 million」
The balance of the allowance for doubtful accounts increased from ¥12,726 million in the previous fiscal year to ¥14,040 million, and the provision for allowance for doubtful accounts also amounted to ¥2,196 million. - FY2026-H1WorsenedAnnual report
「Provision for allowance for doubtful accounts ¥111 million ¥439 million」
The provision for allowance for doubtful accounts increased from ¥111 million in the same period of the previous year to ¥439 million. Restructured loans also increased from ¥1,243 million to ¥3,543 million. - FY2025MitigatedAnnual report
「The company records an allowance for doubtful accounts based on information available as of the end of the fiscal year. However, because collection of its trade receivables takes place over the medium to long term, unforeseen events such as customer delinquencies or bankruptcies may occur due to changes in economic or other events or circumstances, or deterioration in customers’ operating results or financial position, potentially requiring additional provisions to be recorded in the following fiscal year.」
The balance of the allowance for doubtful accounts decreased from ¥13,318 million in the previous fiscal year to ¥12,726 million, and the provision for allowance for doubtful accounts also decreased, while the possibility of additional provisioning continues to be explicitly stated. - FY2025-H1MitigatedAnnual report
「Provision for allowance for doubtful accounts ¥1,455 million ¥111 million」
The provision for allowance for doubtful accounts decreased from ¥1,455 million in the same period of the previous year to ¥111 million, reducing the downward pressure on profit from credit costs. - FY2024WorsenedAnnual report
「Allowance for doubtful accounts ¥11,851 million ¥13,318 million」
The balance of the allowance for doubtful accounts increased from ¥11,851 million in the previous fiscal year to ¥13,318 million. Although credit-related costs decreased, the company also disclosed that collection of trade receivables could take the medium to long term and that additional provisioning may be required. - FY2024-Q3ReframedAnnual report
「Allowance for doubtful accounts △ ¥9,839 million △ ¥8,590 million … Allowance for doubtful accounts △ ¥2,011 million △ ¥3,991 million」
On the balance sheet, the allowance for doubtful accounts decreased from ¥9,839 million to ¥8,590 million under current assets, while increasing from ¥2,011 million to ¥3,991 million under investments and other assets, indicating a change in the composition of the allowance. - FY2024-Q2WorsenedAnnual report
「Bankrupt, reorganization and similar claims ¥164 million ¥1,572 million Doubtful claims ¥1,680 million ¥2,943 million Claims past due three months or more — — Restructured loans ¥2,176 million ¥1,539 million」
The provision for allowance for doubtful accounts decreased slightly from ¥1,502 million in the same period of the previous year to ¥1,455 million, while bankrupt and reorganization claims and similar claims increased from ¥164 million to ¥1,572 million, and doubtful claims increased from ¥1,680 million to ¥2,943 million. - FY2024-Q1MitigatedAnnual report
「Selling, general and administrative expenses decreased year on year as credit-related costs declined.」
Credit-related costs declined overall, contributing to the decrease in selling, general and administrative expenses. In the leasing business, however, a provision for allowance for doubtful accounts was recorded, while a reversal of the allowance for doubtful accounts was recorded in the finance business. - FY2023MitigatedAnnual report
「Selling, general and administrative expenses also decreased as credit-related costs improved, resulting in operating income and ordinary income exceeding the previous fiscal year’s figures.」
The provision for allowance for doubtful accounts decreased from ¥3,259 million in the previous fiscal year to ¥2,103 million, making the improvement in credit-related costs a factor boosting profit. - FY2023-Q3MitigatedAnnual report
「Selling, general and administrative expenses also decreased as credit-related costs improved, resulting in operating income, ordinary income, and net income attributable to owners of the parent all exceeding the corresponding figures for the same period of the previous year.」
The company explained that selling, general and administrative expenses decreased as credit-related costs, which had reduced profit through the previous quarter, improved. - FY2023-Q2WorsenedAnnual report
「Selling, general and administrative expenses increased due to higher credit-related expenses, but higher gross profit and non-operating income resulted in operating profit, ordinary profit and quarterly net profit attributable to owners of the parent all exceeding the results for the same period of the previous year. Allowance for doubtful accounts ¥510 million ¥1,502 million」
The allowance for doubtful accounts increased from ¥510 million in the same period of the previous year to ¥1,502 million. Bankruptcy and reorganization claims and other categories also increased from ¥199 million to ¥1,298 million, explicitly indicating an increase in credit-related expenses. - FY2023-Q1WorsenedAnnual report
「In terms of operating performance, revenue and gross profit both increased year on year, as growth centered on the investment business more than offset the decline in revenue from the leasing business, which had recorded the sale of a large leasing asset in the same period of the previous year. Selling, general and administrative expenses increased due to higher credit-related expenses, but higher gross profit and non-operating income resulted in operating profit, ordinary profit and quarterly net profit attributable to owners of the parent all exceeding the results for the same period of the previous year.」
Credit-related expenses increased, and the finance business recorded an operating loss of ¥16 million due to the recognition of an allowance for doubtful accounts. The downward impact of credit costs on profit was again explicitly stated. - FY2022-Q3RestatedAnnual report
「Revenue from the finance business decreased 15.2% year on year to ¥374 million, due mainly to lower interest income, while operating profit decreased by ¥1,199 million year on year to ¥43 million, due mainly to the recognition of an allowance for doubtful accounts.」
In the finance business, the allowance for doubtful accounts continued to be recognized, and the impact of credit costs continued to weigh on operating profit. - FY2022-Q2WorsenedAnnual report
「(2) Delinquent claims Previous consolidated fiscal year ( 31 March 2021 ) Second quarter of the current consolidated fiscal year ( 30 September 2021 ) ¥642 million ¥2,496 million」
The balance of delinquent claims increased from ¥642 million at the end of the previous fiscal year to ¥2,496 million. Meanwhile, the allowance for doubtful accounts decreased from ¥954 million in the same period of the previous year to ¥510 million. - FY2022-Q1MitigatedAnnual report
「In addition, as credit costs recognized in the previous fiscal year in light of the impact of COVID-19 improved in the current fiscal year, operating profit, ordinary profit and quarterly net profit attributable to owners of the parent all significantly exceeded the results for the same period of the previous year.」
Credit costs recognized in the previous fiscal year in light of the impact of COVID-19 improved in the current fiscal year, and the decrease in the allowance for doubtful accounts in the finance business also contributed to higher operating profit. - FY2021WorsenedAnnual report
「However, the assumptions used in the estimates involve uncertainty, and if the future spread of COVID-19 or its impact on the economic environment changes significantly, concerns over the collectibility of the operating receivables held may increase and additional allowances may be required in the consolidated financial statements for the following fiscal year.」
The deterioration in customers' financial condition due to COVID-19 and the possibility of additional allowances were identified as significant estimates for the year. The allowance for doubtful accounts was approximately ¥10.6 billion, and credit-related expenses weighed on full-year profit. - FY2021-Q3RestatedAnnual report
「Revenue from the finance business decreased 13.7% year on year to ¥438 million, due mainly to lower interest income, while operating profit decreased by ¥1,312 million year on year to ¥146 million, due mainly to the recognition of an allowance for doubtful accounts.」
In the finance business, the allowance for doubtful accounts continued to be recognized, and the impact of credit costs continued to weigh on operating profit. - FY2021-Q2WorsenedAnnual report
「Selling, general and administrative expenses also increased due to the recognition of credit costs resulting from the spread of COVID-19, among other factors, and operating profit, ordinary profit and quarterly net profit attributable to owners of the parent all fell below the same period of the previous year.」
Credit costs amounted to an allowance for doubtful accounts of ¥954 million. Among non-performing loans, delinquent claims amounted to ¥528 million and restructured loans to ¥5,716 million, both increasing from the end of the previous consolidated fiscal year. - FY2021-Q1MaterialisedAnnual report
「Selling, general and administrative expenses also increased due to the recognition of credit costs resulting from the spread of COVID-19, among other factors, and operating profit, ordinary profit and quarterly net profit attributable to owners of the parent all fell below the same period of the previous year.」
With respect to credit risk, credit costs resulting from the spread of COVID-19 were actually recognized, contributing to the increase in selling, general and administrative expenses. - FY2020-Q2ReframedAnnual report
「b. Finance Business Revenue from the finance business increased 8.2% year on year to ¥329 million, but operating profit decreased by ¥559 million year on year to ¥144 million, due mainly to a decrease in the reversal of the allowance for doubtful accounts.」
In the finance business, a decrease in the reversal of the allowance for doubtful accounts put downward pressure on profit. Non-performing loans comprised bankruptcy and reorganization claims of ¥1,396 million, delinquent claims of ¥50 million and restructured loans of ¥270 million. - FY2020-Q1ReframedAnnual report
「b. Finance Business Revenue from the finance business increased 5.0% year on year to ¥163 million, but operating profit decreased by ¥497 million year on year to ¥83 million, due mainly to a decrease in the reversal of the allowance for doubtful accounts.」
In the finance business, a decrease in the reversal of the allowance for doubtful accounts put downward pressure on profit, changing the earnings composition from the previous year's profit growth driven by the reversal. - FY2019ReframedAnnual report
「Profit in the finance business increased due to the recognition of dividend income, interest income and other items, as well as a reversal of the allowance for doubtful accounts.」
A decrease in the reversal of the allowance for doubtful accounts was a factor behind lower profit in the leasing and installment sales business, while a reversal of the allowance for doubtful accounts was a factor behind higher profit in the finance business. - FY2019-Q3RestatedAnnual report
「a. Leasing and Installment Sales Business Revenue from the leasing and installment sales business increased 2.2% year on year to ¥12,494 million, but operating profit decreased by ¥191 million year on year to ¥350 million, due mainly to a decrease in the reversal of the allowance for doubtful accounts. b. Finance Business Revenue from the finance business decreased 4.9% year on year to ¥456 million, as dividend income was recorded in the same period of the previous year, but operating profit increased by ¥67 million year on year to ¥258 million, due mainly to the recognition of a reversal of the allowance for doubtful accounts.」
The business-specific impact of credit costs continued, with a decrease in the reversal of the allowance for doubtful accounts weighing on profit in the leasing and installment sales business, while recognition of a reversal boosted profit in the finance business. - FY2019-Q2RestatedAnnual report
「a. Leasing and Installment Sales Business Revenue from the leasing and installment sales business increased 2.3% year on year to ¥8,328 million, but operating profit decreased by ¥284 million year on year to ¥249 million, due mainly to a decrease in the reversal of the allowance for doubtful accounts. b. Finance Business Revenue from the finance business increased 6.0% year on year to ¥304 million, while operating profit increased by ¥723 million year on year to ¥202 million, due mainly to the recognition of a reversal of the allowance for doubtful accounts.」
The business-specific impact of credit costs continued, with a decrease in the reversal of the allowance for doubtful accounts weighing on profit in the leasing and installment sales business, while recognition of a reversal boosted profit in the finance business. - FY2019-Q1ReframedAnnual report
「a. Leasing and Installment Sales Business Revenue from the leasing and installment sales business increased 2.5% year on year to ¥4,184 million, but operating profit decreased by ¥425 million year on year to ¥121 million, due mainly to a decrease in the reversal of the allowance for doubtful accounts. b. Finance Business Revenue from the finance business was flat year on year at ¥155 million, but operating profit increased by ¥731 million year on year to ¥133 million, due mainly to the recognition of a reversal of the allowance for doubtful accounts.」
A decrease in the reversal of the allowance for doubtful accounts put downward pressure on profit in the leasing and installment sales business, while recognition of a reversal boosted profit in the finance business, resulting in different impacts from credit costs by business. - FY2018-Q3RestatedAnnual report
「① Leasing and Installment Sales Business Revenue from the leasing and installment sales business decreased 2.9% year on year to ¥12,221 million, but operating profit increased by ¥779 million year on year to ¥369 million, due mainly to the recognition of a reversal of the allowance for doubtful accounts. ② Finance Business Revenue from the finance business increased 34.8% year on year to ¥481 million, due mainly to dividend income, interest income and other factors. Operating profit increased by ¥795 million year on year to ¥251 million, despite an increase in the allowance for doubtful accounts and other factors.」
A reversal of the allowance for doubtful accounts was recognized in the leasing and installment sales business, while an allowance for doubtful accounts was recognized in the finance business, continuing the divergence in the impact of credit costs by business. - FY2018-Q2ReframedAnnual report
「① Leasing and Installment Sales Business Revenue from the leasing and installment sales business decreased 2.9% year on year to ¥8,145 million, but operating profit increased by ¥797 million year on year to ¥278 million, due mainly to the recognition of a reversal of the allowance for doubtful accounts. ② Finance Business Revenue from the finance business increased 24.4% year on year to ¥286 million, due mainly to interest income, dividend income and other factors. Operating profit increased by ¥180 million year on year to ¥127 million, despite an increase in the allowance for doubtful accounts and other factors.」
A reversal of the allowance for doubtful accounts was recognized in the leasing and installment sales business, while an allowance for doubtful accounts was recognized in the finance business, continuing the divergence in the impact of credit costs by business. Delinquent claims increased from ¥366 million to ¥949 million, while restructured loans decreased from ¥1,582 million to ¥323 million. - FY2018-Q1ReframedAnnual report
「① Leasing and Installment Sales Business Revenue from the leasing and installment sales business decreased 2.5% year on year to ¥4,083 million, but operating profit increased by ¥17 million year on year to ¥163 million, due mainly to the recognition of a reversal of the allowance for doubtful accounts. ② Finance Business Revenue from the finance business increased 43.6% year on year to ¥155 million, due mainly to dividend income and other factors. Operating profit increased by ¥24 million year on year to ¥59 million, despite an increase in the allowance for doubtful accounts and other factors.」
A reversal of the allowance for doubtful accounts boosted profit in the leasing and installment sales business, while the allowance for doubtful accounts increased in the finance business, resulting in different impacts by business. - FY2017RestatedAnnual report
「Revenue from the leasing and installment sales business increased 1.6% year on year to ¥16,827 million, but operating profit decreased by ¥1,030 million year on year to ¥3,235 million, due mainly to the recognition of an allowance for doubtful accounts.」
The disclosure states that the allowance for doubtful accounts weighed on operating profit in the leasing and installment sales business for the full year as well. - FY2017-Q3RestatedAnnual report
「Revenue from the leasing and installment sales business decreased 1.9% year on year to ¥12,593 million, but operating profit decreased by ¥353 million year on year to ¥2,919 million, due mainly to the recognition of an allowance for doubtful accounts. Revenue from the finance business decreased 2.9% year on year to ¥356 million, but operating profit increased by ¥69 million year on year to ¥171 million, due mainly to the recognition of a reversal of the allowance for doubtful accounts.」
The allowance for doubtful accounts continued to weigh on profit in the leasing and installment sales business, while a reversal of the allowance for doubtful accounts was recognized in the finance business. - FY2017-Q2First statedAnnual report
「Revenue from the leasing and installment sales business increased 1.9% year on year to ¥8,385 million, but operating profit decreased by ¥121 million year on year to ¥1,984 million, due mainly to the recognition of an allowance for doubtful accounts.」
The allowance for doubtful accounts was recognized, putting downward pressure on operating profit in the leasing and installment sales business. The disclosure also reports bankruptcy and reorganization claims of ¥3,014 million, delinquent claims of ¥366 million and restructured loans of ¥983 million.