Higher Borrowing Dependence and Rising Interest Rate Risk
First written in FY2023. 6 of 9 entries say "Worsened", first in FY2024-Q2. Latest entry: 2026-08-12.
Kibun Foods moved to the "Worse" side of this theme in 2023, 2 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 "Worsened".
- 2026-08-12WorsenedEarnings
「This was mainly due to an increase of ¥1,467 million in short-term borrowings to finance working capital.」
Short-term borrowings increased to finance working capital, while the equity ratio declined from 32.0% at the end of the previous consolidated fiscal year to 31.3%. - FY2026MitigatedAnnual report
「The Group's reliance on borrowings, defined as the ratio of the total amount of long-term borrowings, short-term borrowings and bonds to total assets, was 31.1% in the fiscal year ending March 2026. Although the strengthening of its financial position, a key theme of “Medium-Term Management Plan 2026,” is steadily progressing,」
Reliance on borrowings declined from 35.2% in the fiscal year ended March 2024 to 31.1% in the fiscal year ending March 2026, while the equity ratio reached 32.0%. The company continues to use interest rate swaps and other measures. - 2026-05-15WorsenedRevision of earnings forecasts
「This was mainly due to a ¥1,024 million decrease in notes and accounts payable and a ¥349 million decrease in other accounts payable, despite an ¥808 million increase in short-term borrowings.」
Short-term borrowings increased by ¥808 million from the end of the previous consolidated fiscal year. The equity ratio rose to 32.0%, from 28.7% at the end of the previous consolidated fiscal year, indicating conflicting movements in financial indicators. - FY2026-H1WorsenedAnnual report
「Current liabilities increased by ¥3,231 million from the end of the previous fiscal year to ¥29,320 million. This was mainly due to a ¥3,623 million increase in short-term borrowings to secure working capital. As a result, the equity ratio was 25.5%, compared with 28.7% at the end of the previous fiscal year.」
Short-term borrowings increased by ¥3,623 million to secure working capital, and the equity ratio declined from 28.7% to 25.5%. Borrowing exposure and financial capacity had deteriorated as of the interim period. - FY2025-H1WorsenedAnnual report
「Current liabilities increased by ¥1,487 million from the end of the previous fiscal year to ¥27,944 million. This was mainly due to a ¥1,759 million increase in short-term borrowings to secure working capital.」
Short-term borrowings increased by ¥1,759 million to secure working capital, while the equity ratio declined from 26.4% at the end of the previous fiscal year to 25.9%. Borrowing exposure had deteriorated as of the interim period. - FY2024MitigatedAnnual report
「The Group's reliance on borrowings, defined as the ratio of the total amount of long-term borrowings, short-term borrowings and bonds to total assets, was 35.2% in the fiscal year ended March 2024.」
Reliance on borrowings declined from 41.2% in the fiscal year ended March 2023 to 35.2%, while the equity ratio rose from 21.2% to 26.4%. The company uses interest rate swaps and other measures to address interest rate risk. - FY2024-Q3WorsenedAnnual report
「This was mainly due to a ¥3,659 million increase in notes and accounts payable resulting from increased procurement of key raw materials and other items, a ¥4,325 million increase in short-term borrowings to secure working capital, and a ¥1,185 million increase in accrued expenses included in “Other.”」
Short-term borrowings increased by ¥4,325 million as a result of procurement of key raw materials and working capital financing, expanding borrowing exposure. Meanwhile, the equity ratio rose to 21.6% from 21.2% at the end of the previous fiscal year. - FY2024-Q2WorsenedAnnual report
「Current liabilities increased by ¥4,129 million from the end of the previous fiscal year to ¥29,510 million. This was mainly due to a ¥1,979 million increase in notes and accounts payable resulting from increased procurement of key raw materials and other items, and a ¥1,617 million increase in short-term borrowings to secure working capital. As a result, the equity ratio was 19.2%, compared with 21.2% at the end of the previous fiscal year.」
Short-term borrowings increased by ¥1,617 million to secure working capital, while the equity ratio declined from 21.2% to 19.2%. The company also states that there were no material changes from the previous fiscal year in the business risks section. - FY2023First statedAnnual report
「The Group's reliance on borrowings, defined as the ratio of long-term borrowings, short-term borrowings and bonds to total assets, was 41.2% in the fiscal year ended March 2023. Accordingly, if interest rates rise unexpectedly in the future, the Group may be unable to raise sufficient funds on its desired terms, potentially affecting its results.」
The company reported a borrowing reliance ratio of 41.2% for the fiscal year ended March 2023 and identified deterioration in financing terms and higher interest expense when interest rates rise as risks. It uses a mix of variable- and fixed-rate borrowing and interest rate swaps.