Interest Rate Rise Risk Under Reliance on Interest-Bearing Debt
First written in FY2016. 3 of 5 entries say "Restated". Latest entry: FY2024.
Tear moved to the "Worse" side of this theme in 2024, 3 years after the typical company in this theme (2021).
The whole theme swung hardest in 2020: 63 of 142 companies on the "Worse" side.
89 other companies' latest entry also says "Worsened".
- FY2024WorsenedAnnual report
「The Group finances construction of its funeral halls, security deposits and funds for M&A transactions through borrowings from financial institutions. Accordingly, if its borrowing costs fluctuate due to financial institutions’ lending policies or rising market interest rates, this could affect the Group’s operating results and financial position. In addition, some borrowings are subject to financial covenants, and any breach of these covenants could also affect the Group’s operating results and financial position.」
Expanded the scope of the disclosure from conventional funeral hall investment to include risks associated with borrowings, including M&A funding and financial covenants. - FY2019RestatedAnnual report
「The Group finances construction costs for facilities, security deposits and other expenses through borrowings from financial institutions. Accordingly, if interest rates rise, this could affect the Group's operating performance and financial condition.」
The risk of interest rate increases associated with financing facility investment and other expenses through borrowings continues to be disclosed. - FY2018RestatedAnnual report
「The Group finances construction costs for facilities, security deposits and other expenses through borrowings from financial institutions. Accordingly, if interest rates rise, this could affect the Group's operating performance and financial condition.」
The risk of interest rate increases associated with financing facility investment and other expenses through borrowings continues to be disclosed. - FY2017RestatedAnnual report
「The Group finances construction costs for facilities, security deposits and other expenses through borrowings from financial institutions. Accordingly, if interest rates rise, this could affect the Group's operating performance and financial condition.」
The risk of interest rate increases associated with facility investment dependent on borrowings continues to be disclosed. - FY2016First statedAnnual report
「The ratio of interest-bearing debt to total assets is relatively high. Accordingly, if interest rates rise while reliance on interest-bearing debt remains high, this could affect the Company's operating performance.」
The risk of interest rate increases associated with financing funds for opening new facilities through borrowings was disclosed for the first time.