Risk of rising working capital needs and worsening financing conditions
First written in FY2016. 22 of 45 entries say "Worsened", first in FY2020-Q2. Latest entry: 2026-11-10.
Shinden Hightex moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2022: 7 of 14 companies on the "Worse" side.
7 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「For the fiscal year ending March 2026, increases in inventories, advances paid, and trade receivables resulted in significantly negative cash flows from operating activities, leading to an increase in interest-bearing debt to secure the shortfall in funds.」
Operating cash flow turned from an increase of ¥3,068 million in the previous year to a decrease of ¥4,293 million, while increases in inventories, advances paid and trade receivables were funded through short-term borrowings and other sources. - FY2026-H1WorsenedAnnual report
「Cash flow from operating activities decreased by ¥712 million. The main factors were the recognition of ¥273 million in interim profit before income taxes and a ¥485 million increase in trade payables, offset by a ¥1,308 million increase in inventories.」
Operating cash flow was negative at ¥712,898,000 due to an increase in inventories, and interest-bearing debt also increased, increasing working capital requirements and the financing burden. - FY2025MitigatedAnnual report
「For the fiscal year ended March 2025, a substantial decrease in inventories resulted in a significant increase in cash flows from operating activities, which were used to repay interest-bearing debt.」
Operating cash flow increased from ¥1,033 million to ¥3,068 million, while inventories decreased by ¥2,683 million. The interest-bearing debt ratio fell from 43.5% to 35.9%, improving indicators related to working capital and the financing burden. - FY2025-H1WorsenedAnnual report
「Cash flow from operating activities decreased by ¥716 million.」
Operating cash flow was negative at ¥716 million, as increases in trade receivables and decreases in trade payables increased the working capital burden. Short-term borrowings also continued to increase. - FY2024WorsenedAnnual report
「For the fiscal year ended March 2024, trade receivables increased, but cash and deposits also increased as the company increased borrowings to secure working capital.」
Borrowings were increased to secure working capital, with interest-bearing debt rising from ¥6,354 million to ¥8,090 million and the interest-bearing debt ratio rising from 37.7% to 43.5%. - FY2024-Q3WorsenedAnnual report
「Liabilities totaled ¥11,604 million, an increase of ¥1,689 million (17.0%) from the end of the previous consolidated fiscal year. The main factors were increases of ¥1,367 million (21.5%) in interest-bearing debt and ¥680 million (28.8%) in accounts payable.」
Interest-bearing debt and accounts payable increased, increasing working capital requirements and the financing burden. The current ratio and equity ratio fell to 163.0% and 38.0%, respectively. - FY2024-Q2WorsenedAnnual report
「Cash flow from operating activities decreased by ¥639 million. The main factors were recognition of a ¥700 million increase in the allowance for doubtful accounts and a ¥1,713 million increase in trade payables, offset by increases of ¥807 million in trade receivables, ¥1,932 million in inventories and ¥530 million in fixed trade receivables.」
Operating cash flow was negative due to increases in trade receivables, inventories and fixed trade receivables, increasing working capital requirements. Interest-bearing debt also rose 15.7% from the end of the previous fiscal year. - FY2024-Q1WorsenedAnnual report
「The main factors were increases of ¥1,848 million (28.8%) in notes and accounts receivable and contract assets, ¥903 million (21.6%) in cash and deposits, and ¥807 million (15.4%) in merchandise.」
In addition to increases in trade receivables, merchandise and cash, interest-bearing debt also increased by ¥2,089 million, or 32.9%. Working capital requirements and the financing burden increased. - FY2023MitigatedAnnual report
「As a result of repaying borrowings using cash and deposits as well, interest-bearing debt declined substantially.」
Interest-bearing debt decreased 44.4% from ¥11,438 million to ¥6,354 million, and the interest-bearing debt-to-net assets ratio fell from 1.8 times to 0.9 times. The current ratio was 182.2% and the equity ratio was 41.1%. - FY2023-Q3MitigatedAnnual report
「The current ratio increased by 17.3 percentage points from the end of the previous consolidated fiscal year to 169.6%, mainly due to a decrease in short-term borrowings. The equity ratio increased by 6.1 percentage points to 36.7%, mainly due to an increase in net assets from higher retained earnings. The interest-bearing debt-to-net assets ratio was 1.2x, down 0.6 percentage points from the end of the previous consolidated fiscal year.」
Liquidity and the equity ratio improved due to decreases in short-term borrowings and interest-bearing debt, among other factors, and risk indicators related to financing and financial burden improved. - FY2023-Q2WorsenedAnnual report
「Cash flow from operating activities decreased by ¥1,282 million. The main factors were the recognition of ¥497 million in profit before income taxes and ¥1,752 million in foreign exchange gains or losses, offset by increases of ¥2,931 million in trade receivables and ¥669 million in inventories.」
Operating cash flow was negative at ¥1,282 million due to increases in trade receivables and inventories, while interest-bearing debt also rose 19.5%. The current ratio and equity ratio fell to 146.9% and 27.6%, respectively. - FY2023-Q1WorsenedAnnual report
「The main factors were a ¥722 million (11.4%) decrease in cash and deposits, offset by increases of ¥1,219 million (22.7%) in merchandise and ¥696 million (8.4%) in notes and accounts receivable and contract assets.」
The working capital burden increased due to higher inventory and trade receivables and lower cash, while the current ratio fell to 145.5% as accounts payable and short-term borrowings increased. - FY2022Improved operating cash flow alongside increases in inventory and interest-bearing debtAnnual report
「Funds generated from operating activities during the consolidated fiscal year amounted to ¥747 million, compared with a decrease of ¥602 million in the same period of the previous year. The main factors were the recognition of ¥1,076 million in profit before income taxes and the ¥653 million decrease in trade receivables, despite a ¥1,092 million increase in inventories.」
Operating cash flow improved from negative to positive, and trade receivables also declined, while inventories increased and the balance of interest-bearing debt rose 3.0% from the end of the previous fiscal year. - FY2022-Q3WorsenedAnnual report
「The main factors were decreases of ¥739 million (11.8%) in cash and deposits and ¥774 million (8.7%) in notes and accounts receivable and contract assets, offset by a ¥2,603 million (61.1%) increase in merchandise.」
The merchandise balance increased 61.1% from the end of the previous consolidated fiscal year, increasing the working capital and inventory burden. While the current ratio also fell to 149.2%, the equity ratio rose to 29.2%, resulting in mixed movements in financial indicators. - FY2022-Q2MitigatedAnnual report
「The current ratio fell 2.5 percentage points from the end of the previous consolidated fiscal year to 150.6%, mainly due to an increase in accounts payable and other factors. The equity ratio rose 1.4 percentage points to 29.7%, mainly due to a decrease in interest-bearing debt and other factors. The interest-bearing debt-to-net assets ratio was 1.7 times, down 0.2 points from the end of the previous consolidated fiscal year.」
Although the current ratio declined, the equity ratio rose to 29.7% as interest-bearing debt decreased, and the interest-bearing debt-to-net assets ratio also fell to 1.7 times. - FY2022-Q1MitigatedAnnual report
「The current ratio rose 3.9 percentage points from the end of the previous consolidated fiscal year to 157.0%, mainly due to a decrease in short-term borrowings and other factors. The equity ratio rose 2.5 percentage points to 30.8%, mainly due to an increase in net assets resulting from higher retained earnings and other factors. The interest-bearing debt-to-net assets ratio was 1.6 times, remaining at approximately the same level as at the end of the previous consolidated fiscal year.」
The current ratio and equity ratio improved due to a decrease in short-term borrowings and other factors, and indicators related to working capital and financial burden improved from the end of the previous fiscal year. - FY2021WorsenedAnnual report
「For the fiscal year ended March 2021, trade receivables increased and operating cash flow was negative, so the company raised funds through borrowings, resulting in an increase in interest-bearing debt.」
Cash flow from operating activities was negative at ¥602 million, while interest-bearing debt increased 12.0% from the end of the previous fiscal year. The current ratio fell to 153.1%. - FY2021-Q3MitigatedAnnual report
「The current ratio fell 6.9 percentage points from the end of the previous consolidated fiscal year to 164.7%, mainly due to an increase in accounts payable and other factors. The equity ratio rose 1.8 percentage points to 31.1%, mainly due to a decrease in interest-bearing debt and other factors. The interest-bearing debt-to-net assets ratio was 1.5 times, down 0.4 points from the end of the previous consolidated fiscal year.」
The equity ratio rose to 31.1% as interest-bearing debt declined, while the interest-bearing debt-to-net assets ratio also fell to 1.5 times. Although the current ratio declined, financial burden indicators improved. - FY2021-Q2WorsenedAnnual report
「The current ratio declined by 18.2 points from the end of the previous consolidated fiscal year to 153.4% due to an increase in short-term borrowings and other factors. The equity ratio declined by 3.2 points to 26.1% due to an increase in interest-bearing debt and other factors. The interest-bearing debt-to-net assets ratio was 2.1x, up 0.2 points from the end of the previous consolidated fiscal year.」
The current ratio and equity ratio declined as short-term borrowings and interest-bearing debt increased, while the interest-bearing debt-to-net assets ratio rose. - FY2021-Q1Increase in Interest-Bearing Debt and Decline in Equity RatioAnnual report
「Liabilities were ¥13.770 billion, an increase of ¥915 million, or 7.1%, from the end of the previous consolidated fiscal year. The primary factors were a ¥72 million, or 60.5%, decrease in income taxes payable and other liabilities, and increases of ¥584 million, or 5.9%, in interest-bearing debt and ¥392 million, or 17.1%, in accounts payable. The current ratio declined by 9.7 points to 161.9% due to an increase in short-term borrowings and other factors. The equity ratio declined by 1.3 points to 28.0% due to an increase in interest-bearing debt and other factors.」
Liabilities increased due to increases in interest-bearing debt and accounts payable, while the current ratio and equity ratio declined. Meanwhile, the interest-bearing debt-to-net assets ratio was 2.0x, almost unchanged from the end of the previous fiscal year. - FY2020Operating cash flow deterioration and improved financial metrics coexistAnnual report
「The Group will continue to strengthen its equity capital and build good relationships with financial institutions. However, if financing conditions deteriorate or interest rates fluctuate significantly, the Group’s performance and other aspects may be affected.」
Cash flow from operating activities turned from an increase of ¥5.994 billion to a decrease of ¥467 million, while interest-bearing debt declined due to loan repayments and the equity ratio rose from 25.3% to 29.3%. - FY2020-Q3RestatedAnnual report
「The current ratio declined by 9.8 points from the end of the previous consolidated fiscal year to 160.9%, due to an increase in short-term borrowings and other factors. The equity ratio declined by 0.4 points to 24.9%, due to an increase in interest-bearing debt and other factors. The interest-bearing debt-to-net assets ratio was 2.4x, up 0.4 points from the end of the previous consolidated fiscal year.」
The current ratio and equity ratio have continued to decline, while the interest-bearing debt-to-net assets ratio has risen, due to increases in short-term borrowings and interest-bearing debt. - FY2020-Q2WorsenedAnnual report
「Cash flow from operating activities decreased by ¥2.237 billion. The primary factors were a ¥636 million decrease in inventories, a ¥1.984 billion decrease in trade payables and a ¥1.197 billion increase in trade receivables.」
Although inventories declined, cash flow from operating activities was negative ¥2.237 billion due to the decrease in trade payables and the increase in trade receivables. Interest-bearing debt also increased 21.8%, raising the interest-bearing debt-to-net assets ratio to 2.4x. - FY2020-Q1Inventory decline and increase in trade receivables coexistAnnual report
「The primary factors were increases of ¥865 million, or 12.4%, in cash and deposits and ¥448 million, or 6.7%, in notes and accounts receivable, offset by decreases of ¥1.083 billion, or 18.7%, in merchandise and ¥314 million, or 33.4%, in other current assets.」
Although the working capital burden was partly reduced by the decline in merchandise inventories, notes and accounts receivable increased, resulting in mixed working capital trends. - FY2019MitigatedAnnual report
「For the fiscal year ended March 2019, cash flows from operating activities were positive due to a decrease in trade receivables and an increase in trade payables, and interest-bearing debt decreased.」
Cash flow from operating activities turned from a decrease of ¥6.511 billion in the previous fiscal year to an increase of ¥5.994 billion, while the interest-bearing debt ratio also declined to 50.6%. - FY2019-Q3Collection of receivables and increase in cash coexist with an increase in accounts payableAnnual report
「The primary factors were a ¥2.862 billion, or 27.1%, decrease in notes and accounts receivable, and increases of ¥2.876 billion, or 65.0%, in cash and deposits, ¥345 million, or 46.5%, in other current assets, and ¥344 million, or 6.1%, in merchandise.」
Although trade receivables declined and cash increased, merchandise and accounts payable also increased, and the current ratio fell to 167.6%. Working capital and financial metrics moved in opposite directions. - FY2019-Q2Improved working capital balance and lower current ratio coexistAnnual report
「Cash flow from operating activities increased by ¥4.583 billion. The primary factors were a ¥305 million increase in advances paid, a ¥2.556 billion decrease in trade receivables and a ¥2.356 billion increase in trade payables.」
Cash flow from operating activities increased by ¥4.583 billion due to the decline in trade receivables and the increase in trade payables. Interest-bearing debt also declined by ¥1.476 billion, while the current ratio fell to 166.0% due to the increase in accounts payable. - FY2019-Q1MitigatedAnnual report
「Interest-bearing debt declined by ¥2.393 billion, or 17.9%, income taxes payable and other liabilities by ¥179 million, or 92.5%, and provision for bonuses by ¥37 million, or 54.2%, while accounts payable increased by ¥2.642 billion, or 117.4%.」
Interest-bearing debt declined 17.9% from the end of the previous consolidated fiscal year, and the interest-bearing debt-to-net assets ratio also declined by 0.3 points to 2.1x. Accounts payable increased, but financial metrics improved. - FY2018-Q3Working capital requirements and improved financial metrics coexistAnnual report
「Total assets were ¥24.966 billion, an increase of ¥3.760 billion, or 17.7%, from the end of the previous consolidated fiscal year. The primary factors were a ¥2.081 billion, or 28.3%, decrease in cash and deposits, and increases of ¥3.461 billion, or 82.6%, in merchandise and ¥2.059 billion, or 23.1%, in notes and accounts receivable. Liabilities were ¥19.728 billion, an increase of ¥1.926 billion, or 10.8%, from the end of the previous consolidated fiscal year. The primary factor was a ¥4.249 billion, or 37.0%, increase in interest-bearing debt.」
The increase in merchandise and trade receivables, together with the decrease in cash and the increase in interest-bearing debt, indicated expanding working capital requirements. Meanwhile, the interest-bearing debt-to-net assets ratio was 3.0x, down 0.4 points from the end of the previous consolidated fiscal year. - FY2018-Q2MaterialisedAnnual report
「Cash flow from operating activities decreased by ¥2.934 billion. The primary factors were an ¥1.852 billion increase in trade payables, an increase of ¥3.041 billion in inventories and an increase of ¥2.1 billion in trade receivables.」
Cash flow from operating activities was negative ¥2.934 billion due to increases in inventories and trade receivables, and working capital requirements materialized. Merchandise increased 72.8% from the end of the previous fiscal year, while notes and accounts receivable increased 22.2%. - FY2018-Q1MitigatedAnnual report
「Liabilities totaled ¥18.015 billion, an increase of ¥212 million, or 1.2%, from the end of the previous consolidated fiscal year. The primary factors were a ¥961 million, or 16.9%, increase in accounts payable, a ¥683 million, or 6.0%, decrease in interest-bearing debt and a ¥90 million, or 55.4%, decrease in income taxes payable and other liabilities.」
Interest-bearing debt declined 6.0% from the end of the previous consolidated fiscal year, and the interest-bearing debt-to-net assets ratio also declined by 0.3 points to 3.1x. - FY2017MitigatedAnnual report
「In the fiscal year ended March 2017, cash flow from operating activities was positive due to inventory reductions and an increase in trade payables, and interest-bearing debt declined further.」
Cash flow from operating activities was positive ¥3.318 billion, while the balance of interest-bearing debt declined from ¥12.384 billion to ¥11.489 billion and the interest-bearing debt ratio declined from 63.6% to 54.2%. - FY2017-Q3MitigatedAnnual report
「The primary factors were a ¥863 million, or 7.0%, decrease in interest-bearing debt and a ¥1.956 billion, or 54.7%, increase in accounts payable.」
Interest-bearing debt declined 7.0% from the end of the previous consolidated fiscal year. Meanwhile, the increase in accounts payable resulted in changes in total liabilities and liquidity indicators in opposite directions. The interest-bearing debt-to-net assets ratio was 3.9x, almost unchanged from the end of the previous consolidated fiscal year. - FY2017-Q2MitigatedAnnual report
「The primary factor was a ¥2.006 billion, or 16.2%, decrease in interest-bearing debt.」
Interest-bearing debt at the end of the second quarter of the current consolidated fiscal year declined 16.2% from the end of the previous consolidated fiscal year. However, the interest-bearing debt-to-net assets ratio was 3.7x, almost unchanged from the end of the previous consolidated fiscal year. - FY2017-Q1MitigatedAnnual report
「The primary factor was a ¥1.490 billion, or 12.0%, decrease in interest-bearing debt.」
Interest-bearing debt at the end of the quarter declined 12.0% from the end of the previous consolidated fiscal year, while the interest-bearing debt-to-net assets ratio also declined by 0.3 points to 3.5x. - FY2016First statedAnnual report
「The Group’s collection period for trade receivables is longer than its payment period for trade payables, and trade receivables tend to exceed trade payables. As a result, the Group has a financial structure in which cash flow from operating activities is likely to turn negative when sales increase, requiring a corresponding amount of working capital.」
Cash flow from operating activities was negative ¥5.662 billion in the fiscal year ended March 2015 and positive ¥2.870 billion in the fiscal year ended March 2016. The interest-bearing debt ratio was 63.6%.