Reliance on Borrowings and Interest-Rate and Financial-Covenant Risks
First written in FY2016. 19 of 31 entries say "Mitigated", first in FY2018. Latest entry: 2026-09-17.
Pharmarise Holdings moved to the "Worse" side of this theme in 2025, 4 years after the typical company in this theme (2021).
The whole theme swung hardest in 2020: 63 of 142 companies on the "Worse" side.
83 other companies' latest entry also says "Mitigated".
- 2026-09-17MitigatedEarnings
「Long-term borrowings 9,810 9,167」
Long-term borrowings decreased by ¥642 million from the end of the previous consolidated fiscal year. - FY2026WorsenedAnnual report
「Interest-bearing debt (¥ millions) 12,750 14,280 15,153 Total assets (¥ millions) 29,486 31,924 32,680 Interest-bearing debt as a percentage of total assets (%) 43.2 44.7 46.4」
Interest-bearing debt increased to ¥15,153 million, and its ratio to total assets rose to 46.4%, increasing exposure to reliance on borrowings. - FY2026-H1WorsenedAnnual report
「Borrowing amount ¥1,500 million Repayment date 30 November 2032 Collateral Unsecured」
After the filing, the company drew down ¥1,500 million in borrowings subject to financial covenants. The borrowings are also subject to covenants requiring the maintenance of net assets, ordinary profit for 2 consecutive fiscal years, and a net leverage ratio of no more than 3.3x (4.5x for the fiscal years ending May 2026 and May 2027). - FY2025WorsenedAnnual report
「Interest-bearing debt (¥ millions) 14,280 Total assets (¥ millions) 31,924 Interest-bearing debt as a percentage of total assets (%) 44.7」
Interest-bearing debt increased from ¥12,750 million in the previous fiscal year to ¥14,280 million, while its ratio to total assets rose from 43.2% to 44.7%. Long-term borrowings also increased to ¥11,053 million. - FY2025-H1WorsenedAnnual report
「Liabilities totaled ¥23,294 million, an increase of ¥1,250 million from the end of the previous fiscal year. The main factors were a decrease in trade payables to ¥5,393 million, down ¥297 million from the end of the previous fiscal year, offset by an increase in long-term borrowings to ¥11,415 million, up ¥1,761 million.」
Long-term borrowings increased by ¥1,761 million from the end of the previous fiscal year, and liabilities also increased by ¥1,250 million. Exposure to reliance on borrowings and interest expense has increased. - FY2024WorsenedAnnual report
「Interest-bearing debt (¥ millions) 9,914 9,140 12,750 Interest-bearing debt as a percentage of total assets (%) 41.8 39.0 43.2」
Interest-bearing debt increased to ¥12,750 million, and its ratio to total assets rose to 43.2%, due to borrowings associated with the acquisition of GOOD AID and other businesses. Financial covenants continue to be disclosed. - FY2024-Q3WorsenedAnnual report
「Liabilities totaled ¥18,470 million, an increase of ¥2,037 million from the end of the previous consolidated fiscal year. The main factors were decreases in other current liabilities to ¥990 million, down ¥701 million from the end of the previous consolidated fiscal year, and bonds due within one year, which were fully redeemed and converted, down ¥1,482 million, offset by increases in long-term borrowings to ¥8,300 million, up ¥3,083 million, and trade payables to ¥4,917 million, up ¥664 million.」
While bonds were redeemed and converted, long-term borrowings increased by ¥3,083 million, and liabilities increased by ¥2,037 million from the end of the previous fiscal year. This indicates increased exposure to reliance on borrowings. - FY2024-Q2MitigatedAnnual report
「Liabilities totaled ¥14,574 million, a decrease of ¥1,858 million from the end of the previous consolidated fiscal year. The main factors were an increase in trade payables to ¥4,417 million, up ¥165 million from the end of the previous consolidated fiscal year, offset by decreases in long-term borrowings to ¥4,905 million, down ¥311 million, the current portion of long-term borrowings to ¥1,738 million, down ¥269 million, and bonds due within one year, which were fully redeemed and converted, down ¥1,482 million.」
Long-term borrowings, the current portion of long-term borrowings and bonds decreased, resulting in a decline in liabilities from the end of the previous fiscal year. Exposure to reliance on borrowings has decreased. - FY2024-Q1MitigatedAnnual report
「Current portion of long-term borrowings 2,008 1,826 Long-term borrowings 5,216 5,327」
While the current portion of long-term borrowings decreased, long-term borrowings increased. Interest-bearing debt, including bonds, declined slightly from ¥8,706 million at the end of the previous fiscal year to ¥8,635 million. - FY2023MitigatedAnnual report
「Interest-bearing debt (¥ million) 10,712 9,914 9,140 Interest-bearing debt as a percentage of total assets (%) 43.3 41.8 39.0」
Interest-bearing debt totaled ¥9,140 million, and its ratio to total assets was 39.0%, down from ¥9,914 million and 41.8%, respectively, in the previous fiscal year. - FY2023-Q3MitigatedAnnual report
「Liabilities amounted to ¥16,101 million, a decrease of ¥945 million from ¥17,047 million at the end of the previous consolidated fiscal year. The main factor was an increase in trade payables, offset by decreases in income taxes payable and long-term borrowings.」
Total liabilities and long-term borrowings decreased from the end of the previous consolidated fiscal year, reducing exposure to borrowing dependence. - FY2023-Q2MitigatedAnnual report
「Liabilities amounted to ¥16,614 million, a decrease of ¥433 million from ¥17,047 million at the end of the previous consolidated fiscal year. The main factor was a decrease in the current portion of long-term borrowings and long-term borrowings.」
Total liabilities, the current portion of long-term borrowings and long-term borrowings decreased from the end of the previous year, indicating lower exposure to borrowing dependence. - FY2023-Q1MitigatedAnnual report
「Liabilities amounted to ¥16,468 million, a decrease of ¥579 million from ¥17,047 million at the end of the previous consolidated fiscal year. The main factors were increases in trade payables and the provision for bonuses, offset by decreases in income taxes payable, other current liabilities and long-term borrowings.」
Total liabilities decreased by ¥579 million from the end of the previous year, and long-term borrowings also decreased, reducing exposure to borrowing dependence. - FY2022MitigatedAnnual report
「Interest-bearing debt (¥ million) 11,260 10,712 9,914 Interest-bearing debt as a percentage of total assets (%) 44.7 43.3 41.8」
Interest-bearing debt was ¥9,914 million, representing 41.8% of total assets, down from ¥10,712 million and 43.3% in the previous period. - FY2022-Q3MitigatedAnnual report
「Liabilities amounted to ¥17,194 million, a decrease of ¥1,198 million from ¥18,392 million at the end of the previous consolidated fiscal year. The main factors were an increase in trade payables, offset by decreases in long-term borrowings, income taxes payable and other current liabilities.」
Total liabilities decreased by ¥1,198 million from the end of the previous consolidated fiscal year, and long-term borrowings also decreased from ¥5,950 million to ¥5,413 million, indicating lower exposure to borrowing dependence. - FY2022-Q2MitigatedAnnual report
「Liabilities amounted to ¥16,693 million, a decrease of ¥1,699 million from ¥18,392 million at the end of the previous consolidated fiscal year. The main factors were decreases in trade payables and long-term borrowings.」
Total liabilities decreased by ¥1,699 million from the end of the previous consolidated fiscal year, and long-term borrowings also decreased, indicating lower exposure to borrowing dependence. - FY2022-Q1MitigatedAnnual report
「Liabilities amounted to ¥17,317 million, a decrease of ¥1,075 million from ¥18,392 million at the end of the previous consolidated fiscal year. The main factors were increases in trade payables and the provision for bonuses, offset by decreases in income taxes payable, other current liabilities and long-term borrowings.」
Total liabilities decreased by ¥1,075 million from the end of the previous consolidated fiscal year, and long-term borrowings also decreased. - FY2021MitigatedAnnual report
「Interest-bearing debt (¥ million) 10,712 Interest-bearing debt as a percentage of total assets (%) 43.3」
Interest-bearing debt decreased from ¥11,260 million to ¥10,712 million, and its proportion of total assets decreased from 44.7% to 43.3%. - FY2021-Q3MitigatedAnnual report
「Liabilities amounted to ¥18,250 million, a decrease of ¥1,009 million from ¥19,259 million at the end of the previous consolidated fiscal year. The main factors were decreases in trade payables and long-term borrowings.」
Total liabilities and long-term borrowings decreased from the end of the previous consolidated fiscal year, reducing exposure to borrowing dependence compared with the end of the previous year. - FY2021-Q2MitigatedAnnual report
「Liabilities amounted to ¥17,640 million, a decrease of ¥1,619 million from ¥19,259 million at the end of the previous consolidated fiscal year. The main factors were decreases in trade payables and long-term borrowings.」
Total liabilities and long-term borrowings decreased from the end of the previous consolidated fiscal year. - FY2020MitigatedAnnual report
「Interest-bearing debt (¥ million) 10,615 11,186 11,260 Interest-bearing debt as a percentage of total assets (%) 43.7 46.2 44.7」
Interest-bearing debt increased, but its proportion of total assets decreased from 46.2% in the previous period to 44.7%. Financial covenants remain in place. - FY2020-Q3WorsenedAnnual report
「Short-term borrowings － 120 Current portion of bonds 154 166 Current portion of long-term borrowings 2,577 2,692 Bonds 1,637 1,548 Long-term borrowings 6,150 6,048」
Short-term borrowings of ¥120 million, which were not present at the end of the previous consolidated fiscal year, were recognized, and the current portion of long-term borrowings increased from ¥2,577 million to ¥2,692 million. Exposure to the repayment of interest-bearing debt and interest expense has increased. - FY2020-Q2MitigatedAnnual report
「Long-term borrowings 6,150 5,765」
Long-term borrowings decreased from ¥6,150 million at the end of the previous consolidated fiscal year to ¥5,765 million, and total liabilities also decreased from ¥18,597 million to ¥18,500 million. - FY2020-Q1MitigatedAnnual report
「Short-term borrowings － 120 Current portion of long-term borrowings 2,577 2,628 Bonds 1,791 1,791 Long-term borrowings 6,150 5,691」
Interest-bearing debt on the balance sheet decreased from ¥10,518 million at the end of the previous consolidated fiscal year to ¥10,230 million at the end of the first quarter. Meanwhile, short-term borrowings of ¥120 million were newly recognized. - FY2019-Q2WorsenedAnnual report
「The main factors were an increase in bonds issued and long-term borrowings, offset by decreases in trade payables due to payments and the current portion of long-term borrowings due to repayments.」
Interest-bearing debt increased due to the issuance of bonds and long-term borrowings. The main interest-bearing debt on the balance sheet increased from ¥10,615 million at the end of the previous period to approximately ¥11,109 million at the end of the second quarter. - FY2019-Q1MitigatedAnnual report
「Short-term borrowings － 190 Current portion of long-term borrowings 3,244 2,687 Bonds 309 309 Long-term borrowings 6,175 6,065」
Interest-bearing debt on the balance sheet decreased from ¥10,615 million at the end of the previous consolidated fiscal year to ¥9,405 million at the end of the first quarter. - FY2018MitigatedAnnual report
「Interest-bearing debt (¥ million) 10,615 Interest-bearing debt as a percentage of total assets (%) 43.7」
Interest-bearing debt was ¥10,615 million, representing 43.7% of total assets, down from ¥11,041 million and 45.0% in the previous period. Financial covenants continue to be disclosed. - FY2017WorsenedAnnual report
「Interest-bearing debt as a percentage of total assets (%) 42.0 44.2 45.0」
Interest-bearing debt decreased from ¥11,336 million in the previous period to ¥11,041 million, but its proportion of total assets increased from 44.2% to 45.0%. Multiple financial covenants continue to be disclosed. - FY2016First statedAnnual report
「Our group finances most of the capital investment required for store openings through bonds and borrowings. Future interest-rate trends could affect the performance of our group.」
Interest-bearing debt totaled ¥11,336.715 million for the fiscal year ended May 2016, representing 44.2% of total assets. Multiple financial covenants are also disclosed.