Reliance on Interest-Bearing Debt, Cash Flow Concerns and Uncertainties Regarding the Going Concern Assumption
First written in FY2020. 10 of 23 entries say "Mitigated", first in FY2022-Q3. Latest entry: FY2027-H1.
Y's table moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
4 other companies' latest entry also says "Other".
- FY2027-H1Interest-bearing debt increased, while reliance on debt declinedAnnual report
「At the end of the interim consolidated accounting period, interest-bearing debt stood at ¥1,920 million, representing 31.8% of total liabilities and net assets.」
Interest-bearing debt increased from ¥1,656 million at the end of the previous fiscal year to ¥1,920 million, while its proportion of total liabilities and net assets declined from 33% to 31.8%. The Company also obtained a new ¥300 million loan. - FY2026Variable interest rates and interest-rate increase risk explicitly identifiedAnnual report
「High dependence on interest-bearing debt (interest-bearing debt of ¥1,656 million as of the end of February 2026, representing 33% of total liabilities and net assets)・Some interest-bearing debt carries variable interest rates・Interest rates are trending higher」
Although interest-bearing debt declined from the end of the previous fiscal year and the risk table classifies the likelihood of occurrence as low, the Company expressly identified the risk of higher interest expense due to variable-rate borrowings and rising market interest rates. - 2026-04-22MitigatedFinancial Results Presentation
「短期借入金の減少：返済実施による。長期借入金の減少：返済実施による」
短期借入金と長期借入金が返済により減少し、有利子負債残高は前期末の1,705百万円から1,619百万円となった。 - FY2026-H1MitigatedAnnual report
「As of the end of the current interim consolidated fiscal period, interest-bearing debt stood at ¥1,670 million, representing 32.8% of total liabilities and net assets.」
Interest-bearing debt declined from ¥1,705 million at the end of the previous fiscal year to ¥1,670 million, while its share of total liabilities and net assets declined from 35% to 32.8%. - FY2025MitigatedAnnual report
「・High dependence on interest-bearing debt (interest-bearing debt of ¥1,705 million as of the end of February 2025, representing 35% of total liabilities and net assets)」
Interest-bearing debt declined from ¥1,928 million at the end of the previous fiscal year to ¥1,705 million, while dependence on debt declined from approximately 41% to 35%. The risk table also classifies the likelihood of occurrence as low. - FY2025-H1MitigatedAnnual report
「As of the end of the current interim consolidated fiscal period, interest-bearing debt stood at ¥1,858 million, representing 37.6% of total liabilities and net assets.」
Interest-bearing debt declined from ¥1,928 million and dependence on debt from 41% at the end of the previous consolidated fiscal year to ¥1,858 million and 37.6%, respectively. - FY2025-Q1MitigatedAnnual report
「As of the end of the first quarter of the current consolidated fiscal year, interest-bearing debt stood at ¥1,866 million, representing 37.9% of total liabilities and net assets.」
Interest-bearing debt declined from ¥1,928 million at the end of the previous fiscal year to ¥1,866 million, while dependence on debt declined from approximately 41% to 37.9%. - FY2024MitigatedAnnual report
「At the end of the current consolidated fiscal year, interest-bearing debt amounted to ¥1,928 million, representing 41% of total liabilities and net assets.」
Interest-bearing debt declined from ¥2,449 million at the end of the previous fiscal year to ¥1,928 million, while dependence on debt declined from approximately 49% to 41%. Borrowing terms have also been extended through a syndicated loan. - FY2024-Q3MitigatedAnnual report
「In October 2023, the Company entered into borrowing agreements with financial institutions and extended the borrowing terms. As a result, the risk of a cash-flow squeeze if support could not be obtained from financial institutions, which was listed under “6. Cash-flow risks, ① High dependence on interest-bearing debt” in the securities report for the previous fiscal year, has been eliminated. / As of the end of the third quarter of the current consolidated fiscal year, interest-bearing debt stood at ¥1,996 million, representing 41.8% of total liabilities and net assets.」
The Company states that extending the borrowing terms eliminated the risk of a cash-flow squeeze if support could not be obtained from financial institutions. Interest-bearing debt and dependence on debt also declined from the previous quarter, but material uncertainties related to the going-concern assumption remain. - FY2024-Q2RestatedAnnual report
「As of the end of the second quarter of the current consolidated fiscal year, interest-bearing debt stood at ¥2,271 million, representing 45.3% of total liabilities and net assets.」
Interest-bearing debt stood at ¥2,271 million and dependence on debt was 45.3%, with no material structural change from the previous quarter. Short-term repayment deadlines under borrowing agreements, cash-flow concerns and material uncertainties related to the going-concern assumption continue. - FY2024-Q1MitigatedAnnual report
「As of the end of the first quarter of the current consolidated fiscal year, interest-bearing debt stood at ¥2,286 million, representing 45.2% of total liabilities and net assets.」
Interest-bearing debt and dependence on debt declined from ¥2,449 million and approximately 49% at the end of the previous fiscal year, respectively. However, cash-flow concerns and material uncertainties related to the going-concern assumption continue. - FY2023MitigatedAnnual report
「High dependence on interest-bearing debt (interest-bearing debt of ¥2,449 million as of the end of February 2023, representing approximately 49% of total liabilities and net assets)」
Interest-bearing debt declined from ¥2,980 million at the end of the previous fiscal year to ¥2,449 million, while dependence on debt declined from approximately 61% to approximately 49%. However, the Company's financial position remains weak, and uncertainties related to cash flow and the going-concern assumption continue. - FY2023-Q3RestatedAnnual report
「In addition, interest-bearing debt amounted to ¥2,933 million, representing 57.3% of total liabilities and net assets. Although the Company had negative net worth at the end of the third quarter of the current consolidated fiscal year, it will work to eliminate this through the measures described in “(4).”」
Interest-bearing debt stood at ¥2,933 million, dependence on debt was 57.3%, and negative net worth continues. Although debt and dependence on debt declined slightly from the previous quarter, material financial concerns remain. - FY2023-Q2RestatedAnnual report
「As stated in “(1) Operating Results,” the Company recorded an operating loss. In addition, interest-bearing debt amounted to ¥2,948 million, representing 58% of total liabilities and net assets. Although the Company had negative net worth at the end of the second quarter of the current consolidated fiscal year, it will work to eliminate this through the measures described in “(5).”」
Interest-bearing debt stood at ¥2,948 million, dependence on debt was 58%, and negative net worth and an operating loss continue. Although debt declined slightly from the end of the previous fiscal year, material financial concerns remain. - FY2023-Q1Dependence on debt will decline, but negative net worth and material uncertainties continueAnnual report
「As stated in “(1) Operating Results,” the Company recorded an operating loss. In addition, interest-bearing debt amounted to ¥2,964 million, representing 58% of total liabilities and net assets. Although the Company had negative net worth at the end of the first quarter of the current consolidated fiscal year, it will work to eliminate this through the measures described in “(4).”」
While interest-bearing debt and dependence on debt declined slightly from ¥2,980 million and approximately 61% at the end of the previous fiscal year, respectively, negative net worth, an operating loss, cash-flow concerns and material uncertainties related to the going-concern assumption continue. - FY2022WorsenedAnnual report
「Our group funds much of the cash required for its business operations through interest-bearing debt. As of the end of February 2022, interest-bearing debt stood at ¥2,980 million, representing approximately 61% of total liabilities and net assets.」
Interest-bearing debt stood at ¥2,980 million, representing approximately 61% of total liabilities and net assets, and dependence on debt increased from the previous disclosure. Net assets also remained negative at ¥94 million, with negative net worth continuing. - FY2022-Q3MitigatedAnnual report
「As a result, interest-bearing debt rose to ¥2,996 million due to an increase in borrowings, representing approximately 56% of total liabilities and net assets. Negative net worth had been eliminated as of the end of the current third-quarter consolidated cumulative period. However, the outlook for the environment surrounding our group remains uncertain, and we will continue working to strengthen equity capital and reduce interest-bearing debt.」
Although dependence on interest-bearing debt and cash-flow concerns remain, net assets amounted to ¥28 million, eliminating the negative net worth. Financial risk has been reduced in part, but material uncertainties continue. - FY2022-Q1WorsenedAnnual report
「As a result, interest-bearing debt rose to ¥3,029 million due to an increase in borrowings, and the group was in a state of negative net worth after recording a quarterly net loss attributable to owners of the parent. However, we will work to eliminate the negative net worth by implementing the measures described in (4).」
Interest-bearing debt increased to ¥3,029 million, and negative net worth continued. The disclosure describes a worsening financial situation, with concerns regarding liquidity and the going-concern assumption deepening. - FY2021WorsenedAnnual report
「Our group finances much of the funds required for business operations through interest-bearing debt. As of the end of February 2021, interest-bearing debt stood at ¥1,646 million, representing approximately 37% of total liabilities and net assets.」
The disclosure continued to identify dependence on interest-bearing debt and explicitly noted negative net worth of negative ¥978 million, together with material uncertainty regarding liquidity and the going-concern assumption. - FY2021-Q3WorsenedAnnual report
「Our group finances much of the funds required for business operations through interest-bearing debt. As of the end of November 2020, interest-bearing debt stood at ¥1,661 million, representing 34% of total liabilities and net assets. We will continue to seek new financial institutions, diversify our funding sources, strengthen equity capital and reduce interest-bearing debt. However, if market interest rates rise due to changes in financial conditions or we are unable to obtain financing on terms acceptable to us, this could affect our group’s financial position, operating results and liquidity.」
Dependence on liabilities was quantified again, with interest-bearing debt of ¥1,661 million, while negative net worth, liquidity concerns and significant uncertainty related to the going-concern assumption continued. - FY2021-Q2WorsenedAnnual report
「Requests from local governments to shorten operating hours have been lifted, and domestic economic activity has begun to recover gradually. However, as the recovery in dining demand is expected to take some time, concerns have arisen regarding cash management for payments of operating liabilities and repayment of borrowings. In addition, as the group was in a state of negative net worth at the end of the current second-quarter consolidated accounting period, circumstances exist that raise significant doubt about the going-concern assumption.」
Negative net worth continued, with total net assets reaching negative ¥495 million. Liquidity concerns and significant doubt about the going-concern assumption continued. - FY2021-Q1WorsenedAnnual report
「Our group finances much of the funds required for business operations through interest-bearing debt. As of the end of May 2020, interest-bearing debt stood at ¥1,708 million, representing 40% of total liabilities and net assets. Going forward, we will seek new financial institutions, diversify our funding sources, strengthen equity capital and reduce interest-bearing debt. However, if market interest rates rise due to changes in financial conditions or we are unable to obtain financing on terms acceptable to us, this could affect our group’s financial position, operating results and liquidity.」
Interest-bearing debt increased from ¥1,409 million at the end of the previous consolidated fiscal year to ¥1,708 million, further specifying the risks associated with dependence on liabilities and financing terms. Net assets were negative ¥89 million at the end of the first quarter, resulting in negative net worth. - FY2020First statedAnnual report
「Although interest-bearing debt stood at a substantial ¥1,409 million at the end of the current consolidated fiscal year, net assets were ¥523 million, indicating a high degree of dependence on liabilities. Following the lifting of the state of emergency, various requests for voluntary restrictions have been scaled back gradually. However, as the recovery in dining demand is expected to take some time, concerns have arisen regarding cash management for payments of operating liabilities and repayment of borrowings, and circumstances exist that raise significant doubt about the going-concern assumption.」
The financial structure of ¥1,409 million in interest-bearing debt and ¥523 million in net assets was disclosed, together with the first explicit identification of liquidity concerns regarding operating liabilities and repayment of borrowings, resulting from the decline in dining demand, and significant doubt about the going-concern assumption.