Reliance on Inventory Investment and Interest-Bearing Debt
First written in FY2023. 10 of 13 entries say "Worsened", first in FY2024-Q1. Latest entry: FY2026.
Okamura Foods moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 6 of 13 companies on the "Worse" side.
7 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「As of the end of June 2026, inventories excluding supplies stood at ¥29,985 million, equivalent to 49.4% of total assets. As of the end of June 2026, interest-bearing debt stood at ¥30,608 million, with interest-bearing debt representing 50.5% of total assets, a high level.」
Inventories increased from ¥17,378 million at the end of the previous fiscal year to ¥29,985 million, while interest-bearing debt increased from ¥17,288 million to ¥30,608 million. The increase in inventories was ¥11,725 million, short-term borrowings increased by ¥12,596 million, and operating cash flow represented an outflow of ¥8,264 million, indicating a substantial expansion in inventory investment and reliance on borrowing. - FY2026-H1WorsenedAnnual report
「Net cash flow from operating activities was an outflow of ¥14,417 million, an increase in the outflow of ¥13,614 million year on year. This was mainly due to inventories increasing by ¥15,519 million, despite interim net income before income taxes and other adjustments of ¥2,222 million. The main factor was a net increase of ¥18,039 million in short-term borrowings to fund raw material purchases.」
Inventories increased by ¥15,519 million due to higher purchases of fish roe and an increase in work-in-process farmed fish before harvesting, resulting in an operating cash outflow of ¥14,417 million. Short-term borrowings to fund raw material purchases also increased by ¥18,039 million, significantly increasing reliance on borrowings for inventory investment and working capital from the end of the previous fiscal year. - FY2025Debt repayment despite higher inventoryAnnual report
「As of the end of June 2025, inventory excluding supplies stood at ¥17,378 million, equivalent to 42.1% of total assets. As of the end of June 2025, interest-bearing debt stood at ¥17,288 million, while liabilities accounted for 41.9% of total assets, a high level.」
Inventory increased from ¥16,855 million at the end of the previous fiscal year, while interest-bearing debt decreased from ¥18,887 million to ¥17,288 million. Operating cash flow was an inflow of ¥3,536 million, and debt repayment also progressed. - FY2025-H1WorsenedAnnual report
「This was mainly due to a ¥3,041 million increase in inventories. This was mainly due to a ¥4,289 million increase in short-term borrowings for working capital.」
Inventories increased by ¥3,041 million at the interim period-end, while short-term borrowings also increased by ¥4,289 million. Reliance on borrowings to fund inventory and working capital continued to increase. - FY2024WorsenedAnnual report
「As of the end of June 2024, this stood at ¥16,855 million, equivalent to 43.0% of total assets. As of the end of June 2024, interest-bearing debt stood at ¥18,887 million, while liabilities accounted for 63.8% of total assets, a high level.」
Inventory increased from the level at the end of the previous fiscal year, while interest-bearing debt also increased from ¥14,999 million to ¥18,887 million. The company is increasingly financing inventory investment and capital expenditure primarily through borrowings. - FY2024-Q3Down from the previous quarter but still at a high levelAnnual report
「Raw materials and supplies increased by ¥2,511 million, mainly because roe procurement was completed in the domestic processing business, while work in process increased by ¥1,201 million, mainly because farmed fish progressed in their growth at domestic subsidiaries in the aquaculture business. Short-term borrowings increased by ¥6,405 million as working capital, among other factors.」
The increases in inventories and short-term borrowings were smaller than the amounts disclosed for the previous quarter, but raw materials, work in process and other inventories, as well as working-capital borrowings, remained at high levels compared with the end of the previous consolidated fiscal year. - FY2024-Q2WorsenedAnnual report
「The company recorded negative operating cash flow, mainly because inventory increased by ¥5,029 million due to continued increases in raw-material procurement costs, transportation costs and feed costs for the aquaculture business amid the weaker yen and other factors. Short-term borrowings increased by ¥8,614 million as working capital.」
Inventories related to roe procurement and business expansion increased by ¥5,029 million, while short-term borrowings also increased by ¥8,614 million. Dependence on borrowings for inventory investment and working capital expanded further from the previous quarter. - FY2024-Q1WorsenedAnnual report
「Cash and deposits increased by ¥4,484 million, mainly because of the capital increase accompanying the listing on the Tokyo Stock Exchange Standard Market and borrowings for working capital to procure roe from autumn onward in the domestic processing business, as well as the commencement of roe procurement in the domestic processing business from September 2023. Short-term borrowings increased by ¥4,673 million as working capital.」
Inventory and working-capital requirements associated with roe procurement expanded, and short-term borrowings increased by ¥4,673 million. Exposure to inventory investment and dependence on borrowings expanded during the quarter. - FY2023First statedAnnual report
「As of the end of June 2023, this amounted to ¥14,785 million, or 49.1% of total assets. As of the end of June 2023, interest-bearing debt amounted to ¥14,999 million, and liabilities accounted for a high 66.9% of total assets.」
The company indicates a structure in which inventory and capital expenditures are funded through borrowings, and identifies reducing the debt ratio and strengthening shareholders' equity as issues.