Changes in Interest Rates and Asset Values, and Liquidity Risk
First written in FY2016. 6 of 12 entries say "Restated". Latest entry: FY2026.
PS Construction moved to the "Worse" side of this theme in 2026, the same year as the typical company in this theme.
The whole theme swung hardest in 2026: 7 of 17 companies on the "Worse" side.
15 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「As construction projects in the group's principal business have become larger and longer, the collection period for construction payments has lengthened, resulting in a significant increase in funds advanced. Because the group obtains working capital mainly from financial institutions, if borrowing costs rise more than anticipated due to changes in the economic environment or other factors, this may affect the group's performance.」
The company continues to disclose the increase in funds advanced associated with large, long-term construction projects and the risk of rising interest rates on borrowings. - FY2025RestatedAnnual report
「As construction projects in the group's principal business have become larger and longer, the collection period for construction payments has lengthened, resulting in a significant increase in funds advanced. Because the group obtains working capital mainly from financial institutions, if borrowing costs rise more than anticipated due to changes in the economic environment or other factors, this may affect the group's performance.」
The company continues to disclose the increase in funds advanced associated with large, long-term construction projects and the risk of rising interest rates on borrowings. - FY2024RestatedAnnual report
「Borrowings have increased because the collection period for construction payments has lengthened as civil engineering projects undertaken by the group have become larger and longer. Accordingly, if borrowing costs rise more than anticipated due to changes in the economic environment or other factors, this may affect the group's performance.」
The company continues to disclose the increase in borrowings and the risk of rising interest rates associated with large, long-term construction projects. Long-term borrowings increased from ¥3.4 billion at the end of the previous fiscal year to ¥9.06 billion. - FY2023WorsenedAnnual report
「Borrowings have increased because the collection period for construction payments has lengthened as civil engineering projects undertaken by the group have become larger and longer. Accordingly, if borrowing costs rise more than anticipated due to changes in the economic environment or other factors, this may affect the group's performance.」
The lengthening collection period and increase in borrowings associated with large, long-term construction projects have been explicitly disclosed, indicating greater exposure to interest rate fluctuation risk. - FY2022RestatedAnnual report
「The long-term borrowings recorded in the current consolidated fiscal year carry variable interest rates and were arranged without derivative transactions.」
The company continues to disclose that it does not use derivatives to manage the interest rate fluctuation risk of long-term borrowings, based on its judgment that low interest rates will continue. - FY2021New long-term borrowings raised without using interest rate swapsAnnual report
「The long-term borrowings refinanced during the current consolidated fiscal year were arranged without derivative transactions, based on the judgment that low interest rates would be maintained over the medium term given recent financial conditions.」
In addition to fixing interest rates through the previously used interest rate swaps, the company disclosed that it would not use derivatives for long-term borrowings after refinancing, based on its judgment that low interest rates would continue. - FY2018RestatedAnnual report
「Borrowings are obtained primarily to finance operating transactions. As they carry variable interest rates, they are exposed to interest rate fluctuation risk. For certain long-term borrowings, however, the company uses derivative transactions involving interest rate swaps as hedging instruments under individual contracts to avoid interest rate fluctuation risk and fix interest expense.」
The company continues to state its policy of recognizing financial risks, including interest rate, foreign exchange, credit and liquidity risks, and managing them through interest rate swaps, cash-flow planning and other measures. - FY2017RestatedAnnual report
「Borrowings are obtained primarily to finance operating transactions. As they carry variable interest rates, they are exposed to interest rate fluctuation risk. For certain long-term borrowings, however, the company uses derivative transactions involving interest rate swaps as hedging instruments under individual contracts to avoid interest rate fluctuation risk and fix interest expense.」
The company continues to state its policy of recognizing financial risks, including interest rate, asset value and liquidity risks, and managing them through interest rate swaps, cash-flow planning and other measures. - FY2016First statedAnnual report
「Borrowings are obtained primarily to finance operating transactions. As they carry variable interest rates, they are exposed to interest rate fluctuation risk.」
The company recognizes interest rate fluctuation, asset value fluctuation and liquidity risks, including the risk of being unable to make payments when due, and manages them through cash-flow planning and interest rate swaps.