Deterioration in Operating Cash Flow Due to Increased Inventories
First written in FY2022-Q2. 6 of 14 entries say "Worsened", first in FY2023-Q2. Latest entry: 2026-09-14.
Meiho Enterprise moved to the "Worse" side of this theme in 2022, 3 years after the typical company in this theme (2019).
The whole theme swung hardest in 2022: 5 of 26 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2026-H1MitigatedAnnual report
「Net cash used in operating activities was ¥941 million, compared with ¥1.078 billion used in the previous interim consolidated period. This was mainly due to pretax interim income of ¥1.203 billion, a ¥1.326 billion increase in inventories, and a ¥336 million decrease in trade payables, among other factors.」
Inventories increased by ¥1.326 billion, and the burden on operating cash flow continued, but net cash used in operating activities narrowed from ¥1.078 billion in the same period of the previous year to ¥941 million. - FY2025MitigatedAnnual report
「Net cash provided by operating activities was ¥2.894 billion, compared with ¥4.555 billion used in the previous consolidated fiscal year. This was mainly because pretax income increased cash flow by ¥2.759 billion, sales of inventories increased it by ¥373 million, and deposits received on real estate sales contracts increased advances received by ¥303 million, while payments of corporate income taxes reduced it by ¥821 million, among other factors.」
Sales of inventories and other factors turned operating cash flow from net cash used of ¥4.555 billion in the previous fiscal year to net cash provided of ¥2.894 billion. The funding burden from inventory growth eased on an operating cash flow basis in the current fiscal year. - FY2025-H1WorsenedAnnual report
「Net cash used in operating activities was ¥1.078 billion, compared with ¥783 million used in the previous interim consolidated period. This was mainly due to pretax interim income of ¥719 million, a ¥1.492 billion increase in changes in inventories, and a ¥210 million decrease in changes in trade payables, among other factors.」
The increase in inventories and other factors caused net cash used in operating activities to rise from ¥783 million in the same period of the previous year to ¥1.078 billion. - FY2024Outflows from inventory acquisitions continued but narrowedAnnual report
「Net cash used in operating activities was ¥4.555 billion, compared with ¥5.67 billion used in the previous consolidated fiscal year. This was mainly because pretax income increased cash flow by ¥1.895 billion, while the acquisition of inventories reduced it by ¥5.812 billion, among other factors.」
The funding burden on operating cash flow from inventory acquisitions continued, but net cash used in operating activities narrowed from ¥5.67 billion in the previous fiscal year to ¥4.555 billion. - FY2024-Q3Continued increase in inventoriesAnnual report
「This was due to a ¥1.284 billion increase in inventories from the acquisition of new land for development projects and investment properties under construction, among other factors.」
The acquisition of new development land and properties under construction increased inventories by ¥1.284 billion, further expanding the inventory exposure that could create a funding burden. - FY2024-Q2Inventory growth continued, but operating cash outflows narrowedAnnual report
「Net cash used in operating activities was ¥783 million, compared with ¥6.111 billion used in the same period of the previous year. This was mainly due to a ¥1.455 billion increase in changes in inventories and a ¥267 million decrease in changes in advances received, among other factors.」
Inventories increased by ¥1.455 billion, resulting in net cash used in operating activities. However, the outflow narrowed from ¥6.111 billion in the same period of the previous year to ¥783 million. - FY2024-Q1Inventory growth continuedAnnual report
「This was due to a ¥1.481 billion increase in inventories from the acquisition of new land for development projects and investment properties under construction, among other factors.」
The acquisition of new development land and properties under construction increased inventories by ¥1.481 billion, expanding the inventory exposure that could create a funding burden on operating cash flow. - FY2023WorsenedAnnual report
「Net cash used in operating activities was ¥5.67 billion, compared with ¥1.888 billion used in the previous consolidated fiscal year. This was mainly because pretax income increased cash flow by ¥986 million and the receipt of deposits on purchase and sale agreements related to property sales increased it by ¥339 million, while the acquisition of inventories reduced it by ¥6.96 billion, among other factors.」
The funding burden on operating cash flow from inventory acquisitions was ¥6.96 billion, and net cash used in operating activities increased from ¥1.888 billion in the previous fiscal year to ¥5.67 billion. - FY2023-Q2WorsenedAnnual report
「Net cash used in operating activities was ¥6.111 billion, compared with ¥2.65 billion used in the same period of the previous year. This was mainly due to an increase of ¥117 million in changes in advances received from the receipt of deposits on purchase and sale agreements related to property sales, and an increase of ¥3.447 billion in changes in inventories, among other factors.」
The increase in inventories caused net cash used in operating activities to rise from ¥2.65 billion in the same period of the previous year to ¥6.111 billion. - FY2022MaterialisedAnnual report
「Net cash used in operating activities was ¥1.888 billion, compared with net cash provided of ¥1.454 billion in the previous consolidated fiscal year. This was mainly because pretax income increased cash flow by ¥928 million, while cash flow decreased by ¥127 million due to payments of advances related to the acquisition of land for development projects and by ¥2.597 billion due to the acquisition of inventories, among other factors.」
The acquisition of inventories reduced operating cash flow by ¥2.597 billion, resulting in net cash used in operating activities of ¥1.888 billion. - FY2022-Q2First statedAnnual report
「Net cash used in operating activities was ¥2.65 billion, compared with net cash provided of ¥1 million in the same period of the previous year. Although advances received increased by ¥100 million due to the receipt of deposits on purchase and sale agreements related to property sales, operating cash flow decreased by ¥2.5 billion due to an increase in inventories, among other factors.」
The increase in inventories reduced operating cash flow by ¥2.5 billion, resulting in net cash used in operating activities of ¥2.65 billion. The funding burden associated with increases in development land and real estate under development for sale has become apparent in the results.