Optimal Capital Structure Based on the Balance Between Shareholders’ Equity and Debt
First written in FY2020. 2 of 17 entries say "Advanced", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2020: 3 of 27 companies on the "Worse" side.
7 other companies' latest entry also says "Other".
- FY2026Financial targets reset under the Third Medium-Term Management PlanAnnual report
「The D/E ratio, one of the key indicators of financial soundness, is 0.7x for the fiscal year ending June 2026, and will in principle be managed at no more than 1x. The second indicator, the equity ratio, is 48.5% for the fiscal year ending June 2026, with a target of at least 50%.」
The Third Medium-Term Management Plan sets a D/E ratio of no more than 1x and an equity ratio of at least 50% as management targets for financial soundness. - FY2026-H1Increase in Liabilities and Decline in the Equity RatioAnnual report
「Total liabilities at the end of the interim consolidated accounting period stood at ¥19,637 million, an increase of ¥4,133 million from the end of the previous consolidated fiscal year. This was mainly due to increases in accounts payable and short-term borrowings caused by seasonal factors. The equity ratio declined from 48.8% at the end of the previous consolidated fiscal year to 43.6%, mainly because total assets increased as a result of seasonal increases in accounts receivable and other items.」
Total liabilities increased by ¥4,133 million due to seasonal increases in accounts payable and short-term borrowings, while the equity ratio declined from 48.8% to 43.6%. - FY2025AdvancedAnnual report
「The equity ratio rose 2.6 percentage points from 46.2% to 48.8%.」
The equity ratio increased, and the Company proceeded with repayments of long-term borrowings. Under its policy of seeking an optimal capital structure based on fixed interest rates for long-term funding and financial indicators, the Company is showing a numerical improvement in its financial balance. - FY2024Shift in the funding structure from short-term borrowings toward long-term borrowingsAnnual report
「Cash used in financing activities was ¥1,648 million, compared with ¥4,054 million raised in the previous consolidated fiscal year. This mainly reflected ¥5,800 million in proceeds from long-term borrowings, offset by a net decrease of ¥4,000 million in short-term borrowings and ¥2,904 million in repayments of long-term borrowings.」
The funding structure is shifting from short-term to long-term funding, driven by ¥5,800 million raised through long-term borrowings and a ¥4,000 million net decrease in short-term borrowings. - FY2024-Q3Increase in fixed liabilities due to the transfer of borrowingsAnnual report
「Fixed liabilities stood at ¥8,988 million, an increase of ¥2,860 million from the end of the previous consolidated fiscal year. This was mainly due to the transfer of short-term borrowings, included in the current liabilities noted above, to long-term borrowings.」
Fixed liabilities increased by ¥2,860 million from the end of the previous fiscal year, mainly because short-term borrowings related to construction of the second head-office plant were transferred to long-term borrowings. - FY2024-Q2Fixed liabilities increase due to reclassification as long-term borrowingsAnnual report
「Fixed liabilities at the end of the second quarter of the current consolidated fiscal year totaled ¥7,919 million, an increase of ¥1,791 million from the end of the previous consolidated fiscal year. This was mainly due to the reclassification of short-term borrowings listed under current liabilities above as long-term borrowings.」
Fixed liabilities increased by ¥1,791 million from the end of the previous fiscal year, mainly because short-term borrowings raised to fund construction of the second head-office plant were transferred to long-term borrowings. The longer-term funding of investments is reflected in the capital structure. - FY2024-Q1Equity ratio declines as factory construction-related borrowings are reclassified as long-termAnnual report
「The equity ratio fell from 44.3% at the end of the previous consolidated fiscal year to 41.4%, as total assets increased due to seasonal factors.」
While borrowings related to the head office's Second Factory were reclassified from short-term to long-term, the equity ratio declined from 44.3% at the end of the previous fiscal year to 41.4%. - FY2023Equity ratio declines and borrowings and lease liabilities increase due to factory constructionAnnual report
「Fixed liabilities at the end of the current consolidated fiscal year totaled ¥6,128 million, an increase of ¥3,059 million from the end of the previous consolidated fiscal year. This was mainly due to increases of ¥1,638 million in long-term borrowings and ¥1,354 million in lease liabilities. The equity ratio declined from 54.8% to 44.3% because total assets increased in connection with construction of the head office's Second Factory.」
Fixed liabilities increased by ¥3,059 million in connection with construction investment in the head office's Second Factory, accompanied by increases in long-term borrowings and lease liabilities. The equity ratio declined from 54.8% to 44.3%. - FY2023-Q3Equity ratio declines and borrowings increase due to factory constructionAnnual report
「Net assets at the end of the third quarter of the current consolidated fiscal year totaled ¥13,691 million, a decrease of ¥171 million from the end of the previous consolidated fiscal year, mainly because dividend payments offset quarterly net income attributable to owners of the parent. The equity ratio declined from 54.8% at the end of the previous consolidated fiscal year to 44.5% because total assets increased in connection with construction of the head office's Second Factory.」
The equity ratio declined from 54.8% to 44.5% due to an increase in total assets associated with construction of the head office's Second Factory. Short-term and long-term borrowings also increased, reflecting the effects of investment and financing on the capital structure. - FY2023-Q2Equity ratio declines and borrowings increase due to seasonal factorsAnnual report
「Net assets stood at ¥13.846 billion, down ¥16 million from the end of the previous consolidated fiscal year, due to the recognition of quarterly net income attributable to owners of the parent and dividend payments. The equity ratio fell from 54.8% at the end of the previous consolidated fiscal year to 46.4%, as total assets increased mainly due to a seasonal increase in accounts receivable.」
The equity ratio declined from 54.8% to 46.4%, while current liabilities increased by ¥5,180 million due to increases in short-term borrowings and other items caused by seasonal factors. The effects of investment and seasonal working capital are reflected in the capital structure. - FY2023-Q1Equity ratio declines to 51.9%Annual report
「The equity ratio fell from 54.8% at the end of the previous consolidated fiscal year to 51.9%, as total assets increased due to seasonal factors.」
While investments in the head office's Second Factory and other facilities continued, the equity ratio declined to 51.9% from 54.8% at the end of the previous fiscal year due to an increase in total assets and a decrease in net assets caused by seasonal factors. - FY2022Equity ratio declines and borrowings increaseAnnual report
「Fixed liabilities at the end of the current consolidated fiscal year totaled ¥3,068 million, an increase of ¥656 million from the end of the previous consolidated fiscal year. This was mainly due to a ¥782 million increase in long-term borrowings.」
Long-term borrowings increased by ¥782 million in connection with investments in the head office's Second Factory and other facilities, and the equity ratio declined from 61.2% to 54.8%. The policy of maintaining the balance between shareholders' equity and debt at an appropriate level remains in place. - FY2022-Q3Equity ratio recovers to 60.5%Annual report
「Net assets stood at ¥13.828 billion, up ¥242 million from the end of the previous consolidated fiscal year, mainly due to the recognition of quarterly net income attributable to owners of the parent. The equity ratio fell from 61.2% at the end of the previous consolidated fiscal year to 60.5%.」
The equity ratio rose to 60.5% from 53.1% at the end of the second quarter, but remained below the 61.2% recorded at the end of the previous fiscal year. - FY2022-Q2Equity ratio declines to 53.1% at the quarterly reporting dateAnnual report
「The equity ratio declined to 53.1% from 61.2% at the end of the previous consolidated fiscal year because total assets increased, mainly due to a seasonal increase in accounts receivable.」
In connection with managing the optimal capital structure, the equity ratio declined to 53.1% from 61.2% at the end of the previous fiscal year due to a seasonal increase in accounts receivable. - FY2022-Q1Equity ratio falls below the 60% range at the quarterly reporting dateAnnual report
「The equity ratio declined to 59.3% from 61.2% at the end of the previous consolidated fiscal year because total assets increased due to seasonal factors.」
The equity ratio target under the Second Medium-Term Management Plan is in the 60% range, but the ratio was 59.3% at the end of the first quarter because total assets increased due to seasonal factors. - FY2021AdvancedAnnual report
「Through measures including the reduction of interest-bearing debt during the plan period, the equity ratio rose from 43.7% to 61.2%, while the D/E ratio declined from 0.78 to 0.29.」
The reduction of interest-bearing debt and other measures improved the equity ratio and D/E ratio, demonstrating progress in managing the balance between shareholders' equity and debt. - FY2020First statedAnnual report
「Our Group will strengthen its earnings base and invest in production facilities and other assets to achieve sustained growth in corporate value, while maintaining an appropriate balance between shareholders' equity and debt to ensure that these funds can be raised efficiently and stably.」
The company has stated a policy of managing the balance between shareholders' equity and debt and pursuing an optimal capital structure based on financial indicators and other factors, in order to raise funds efficiently and stably for strengthening its earnings base and investing in facilities.