Improving Cash Flow Through Procurement Optimization and Inventory Reduction
First written in FY2020-Q1. 6 of 19 entries say "Advanced", first in FY2021-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2022: 2 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Cash provided by operating activities was ¥1,798 million, compared with ¥1,062 million provided in the previous fiscal year. Cash decreased mainly due to a ¥205 million increase in trade receivables, while depreciation and amortization of ¥489 million, a ¥484 million decrease in inventories, a ¥615 million increase in trade payables and a ¥516 million increase in advances received increased cash, among other factors.」
Inventories decreased by ¥484 million, and cash flow from operating activities increased from ¥1,062 million to ¥1,798 million. This describes progress in inventory reduction and cash generation. - 2026-07-14AdvancedRevision of earnings forecasts
「Cash provided by operating activities was ¥1,798 million, compared with ¥1,062 million provided in the previous fiscal year. Cash decreased mainly due to a ¥205 million increase in trade receivables, while depreciation and amortization of ¥489 million, a ¥484 million decrease in inventories, a ¥615 million increase in trade payables and a ¥516 million increase in advances received increased cash, among other factors.」
The decrease in inventories amounted to ¥484 million, and cash flow from operating activities increased from ¥1,062 million in the previous fiscal year to ¥1,798 million. The full-year results show inventory reduction and improved operating cash flow. - FY2026-H1AdvancedAnnual report
「Funds generated by operating activities were ¥111 million, compared with ¥241 million used in the same period of the previous year. This was mainly attributable to a ¥93 million decrease in advances received and a ¥149 million increase in trade receivables and contract assets, while inventories decreased by ¥177 million, among other factors.」
Inventories decreased by ¥177 million, and cash flow from operating activities turned from an outflow of ¥241 million in the same period of the previous year to an inflow of ¥111 million. This indicates inventory reduction and improved operating cash flow. - FY2025AdvancedAnnual report
「Funds generated by operating activities were ¥1,062 million, compared with ¥734 million generated in the previous fiscal year. The decrease in funds was mainly attributable to a ¥162 million decrease in the allowance for doubtful accounts and a ¥412 million decrease in trade payables, while funds increased due to depreciation of ¥499 million, a ¥723 million decrease in trade receivables and a ¥391 million decrease in inventories, among other factors.」
Inventories decreased by ¥391 million, and cash flow from operating activities increased from ¥734 million to ¥1,062 million. This demonstrates concrete progress in inventory reduction and cash generation. - FY2025-H1Operating cash flow negative despite a decrease in inventoriesAnnual report
「Funds used in operating activities were ¥241 million, compared with ¥92 million generated in the same period of the previous year. This was mainly attributable to a ¥239 million decrease in inventories, while trade payables decreased by ¥68 million and trade receivables increased by ¥624 million, among other factors.」
Inventories decreased by ¥239 million, but cash flow from operating activities amounted to an outflow of ¥241 million due to the ¥624 million increase in trade receivables and other factors. Inventories declined, but cash flow improvement was uneven. - FY2024AdvancedAnnual report
「Funds generated by operating activities were ¥734 million, compared with ¥873 million generated in the previous fiscal year. The decrease in funds was mainly attributable to gains on sales of property, plant and equipment of ¥273 million and other factors, while funds increased due to profit before income taxes of ¥190 million, depreciation of ¥533 million, a decrease in inventories of ¥386 million and an increase in the provision for losses on guarantees of ¥290 million, among other factors.」
Inventories decreased by ¥386 million, and cash flow from operating activities amounted to ¥734 million generated. This demonstrates progress in inventory reduction and cash generation, reversing the previous trend of increasing inventories. - FY2024-Q3Continued increase in inventoriesAnnual report
「Merchandise and finished goods 4,181,618 4,251,896」
Merchandise and finished goods increased from ¥4,181.618 billion at the end of the previous consolidated fiscal year to ¥4,251.896 billion, and inventories continued to increase while the company pursued optimisation of purchasing and inventory. - FY2024-Q2Operating cash flow generated despite an increase in inventoriesAnnual report
「Funds generated by operating activities were ¥92 million, compared with ¥66 million used in the same period of the previous year. This was mainly attributable to increases of ¥519 million in inventories and ¥205 million in trade receivables, while advances received increased by ¥713 million, among other factors.」
Cash flow from operating activities turned positive at ¥92 million, but inventories increased by ¥519 million, indicating that challenges remain in optimising inventory. - FY2023-Q3Increase in merchandise and finished goods and inventory optimization challengeAnnual report
「The main factors were an increase of ¥418 million in merchandise and finished goods, while notes and accounts receivable and contract assets decreased by ¥666 million and buildings and structures decreased by ¥128 million.」
Although the company has set out to optimise purchasing and inventory, merchandise and finished goods increased by ¥418 million from the end of the previous consolidated fiscal year. - FY2023-Q2Increase in inventories and negative operating cash flowAnnual report
「Cash used in operating activities was ¥66 million, compared with ¥57 million used in the same period of the previous year, mainly because inventories increased by ¥382 million and trade payables decreased by ¥376 million, despite a ¥259 million decrease in trade receivables.」
Although the company has set procurement and inventory optimization as a goal, inventories increased by ¥382 million and cash flow from operating activities was an outflow of ¥66 million. - FY2023-Q1Increase in product inventoryAnnual report
「The main factor was an increase of ¥306 million in merchandise and finished goods, among other factors.」
Although the company has set procurement and inventory optimization as a goal, merchandise and finished goods at the end of the first quarter increased by ¥306 million from the end of the previous consolidated fiscal year. - FY2022Operating cash flow remained positive, but declined from the previous year; inventories decreasedAnnual report
「Cash generated from operating activities was ¥678 million, compared with ¥3,028 million in the same period of the previous year, mainly due to depreciation and amortization of ¥671 million and a ¥412 million decrease in inventories.」
Inventories decreased by ¥412 million and cash generated from operating activities was ¥678 million, but this was down from ¥3,028 million in the previous year. - FY2022-Q2Positive operating cash flow and decrease in inventoriesAnnual report
「Cash used in operating activities was ¥57 million, compared with cash generated of ¥1,603 million in the same period of the previous year, mainly because inventories increased by ¥346 million, despite a ¥196 million decrease in trade receivables.」
Although the company has set procurement and inventory optimization as a goal, inventories increased by ¥346 million in the quarter and operating cash flow was an outflow of ¥57 million. - FY2022-Q1RestatedAnnual report
「The company will also thoroughly optimize procurement and inventory levels to improve cash flow.」
The company continues to pursue cash flow improvement by optimizing procurement and inventory levels. - FY2021-Q2AdvancedAnnual report
「Cash generated from operating activities was ¥1,603 million, compared with ¥67 million in the same period of the previous year, mainly because trade receivables decreased by ¥1,283 million and inventories decreased by ¥589 million.」
Cash flow from operating activities increased from ¥67 million in the same period of the previous year to ¥1,603 million, due to declines in trade receivables and inventories. This represents measurable progress in improving cash flow through procurement and inventory optimization. - FY2021-Q1RestatedAnnual report
「The company will thoroughly optimize procurement and inventory levels and shorten the cash conversion cycle to improve cash flow.」
The company continues to pursue cash flow improvement by optimizing procurement and inventory levels and shortening the cash conversion cycle. - FY2020-Q3RestatedAnnual report
「For procurement at each operating company, the company will closely monitor operations to ensure a strong cost focus and procurement at appropriate times and in appropriate quantities in line with revenue. For inventory, it will strengthen efforts to reduce inventory through rigorous inventory management and improve cash flow.」
The company continues to pursue cash flow improvement by optimizing procurement timing and quantities and reducing inventory. - FY2020-Q2RestatedAnnual report
「For procurement at each operating company, the company will closely monitor operations to ensure a strong cost focus and procurement at appropriate times and in appropriate quantities in line with revenue. For inventory, it will strengthen efforts to reduce inventory through rigorous inventory management and improve cash flow.」
The company continues to pursue cash flow improvement by optimizing procurement timing and quantities and reducing inventory. - FY2020-Q1First statedAnnual report
「For procurement at each operating company, the company will closely monitor operations to ensure a strong cost focus and procurement at appropriate times and in appropriate quantities in line with revenue. For inventory, it will strengthen efforts to reduce inventory through rigorous inventory management and improve cash flow.」
The company newly sets out the optimization of procurement timing and quantities in line with revenue and inventory reductions through stronger inventory management as measures to improve its financial position.