Diversifying Funding Sources and Strengthening Financial Position
First written in FY2016. 14 of 32 entries say "Advanced", first in FY2018-Q2. Latest entry: 2026-11-10.
Shinden Hightex moved to the "Worse" side of this theme in 2026.
The whole theme swung hardest in 2026: 2 of 12 companies on the "Worse" side.
2 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.」
Interest-bearing debt increased 93.7% from the end of the previous fiscal year to ¥11.563 billion, and the interest-bearing debt ratio rose from 35.9% to 52.2%. The company is increasingly relying on borrowings to meet working capital needs. - FY2026-H1WorsenedAnnual report
「The main factors were increases of ¥523 million (8.8%) in interest-bearing debt and ¥422 million (17.1%) in accounts payable.」
During the interim period, interest-bearing debt increased by 8.8% from the end of the previous fiscal year due to an increase in short-term borrowings and other factors. The equity ratio declined to 42.4%, while the interest-bearing debt-to-net assets ratio increased to 0.9x. - FY2025AdvancedAnnual 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.」
Cash flows from operating activities increased to ¥3.068 billion. The company implemented a net decrease of ¥1.391 billion in short-term borrowings and repaid ¥690 million in long-term borrowings. The balance of interest-bearing debt decreased from ¥8.090 billion to ¥5.968 billion, and the interest-bearing debt ratio declined from 43.5% to 35.9%. - FY2025-H1WorsenedAnnual report
「Interest-bearing debt increased by ¥244 million (3.0%), while accounts payable decreased by ¥471 million (16.7%).」
Interest-bearing debt increased by 3.0% from the end of the previous fiscal year, and the interest-bearing debt-to-net assets ratio also increased by 0.1 percentage points to 1.2x. Meanwhile, total liabilities decreased due to the decline in accounts payable. - 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.」
The company increased borrowings to secure working capital, raising the balance of interest-bearing debt to ¥8.090 billion and the interest-bearing debt ratio from 37.7% to 43.5%. - FY2024-Q3WorsenedAnnual report
「The current ratio decreased by 19.2 percentage points from the end of the previous consolidated fiscal year to 163.0%, mainly due to increases in accounts payable and short-term borrowings. The equity ratio decreased by 3.1 percentage points to 38.0%, mainly due to increases in accounts payable and interest-bearing debt. The interest-bearing debt-to-net assets ratio was 1.1x, up 0.2x from the end of the previous consolidated fiscal year.」
The current ratio and equity ratio declined, while the interest-bearing debt-to-net assets ratio increased, due to increases in accounts payable, short-term borrowings, and interest-bearing debt. - FY2024-Q2WorsenedAnnual report
「Liabilities totaled ¥12.355 billion, an increase of ¥2.441 billion (24.6%) from the end of the previous consolidated fiscal year. The main factors were increases of ¥1.789 billion (75.7%) in accounts payable and ¥995 million (15.7%) in interest-bearing debt.」
Accounts payable and interest-bearing debt increased, reducing the equity ratio to 35.0% and raising the interest-bearing debt-to-net assets ratio to 1.1x. - FY2024-Q1WorsenedAnnual report
「The current ratio decreased by 32.3 percentage points from the end of the previous consolidated fiscal year to 149.9%, mainly due to increases in accounts payable and short-term borrowings. The equity ratio decreased by 9.2 percentage points to 31.9%, mainly due to a decrease in net assets from lower retained earnings. The interest-bearing debt-to-net assets ratio was 1.3x, up 0.4x from the end of the previous consolidated fiscal year.」
The current ratio and equity ratio declined, while the interest-bearing debt-to-net assets ratio increased, due to increases in accounts payable and short-term borrowings and a decrease in retained earnings. - FY2023AdvancedAnnual report
「For the fiscal year ended March 2023, operating cash flow was positive due to an increase in retained earnings and a decrease in trade receivables, among other factors. As borrowings were repaid using cash and deposits, interest-bearing debt decreased substantially.」
The balance of interest-bearing debt decreased from ¥11.438 billion to ¥6.354 billion, and the interest-bearing debt ratio declined from 54.8% to 37.7%. The equity ratio was 41.1%, indicating quantitative progress in strengthening the financial position. - FY2023-Q3AdvancedAnnual 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.」
The current ratio and equity ratio improved, and the interest-bearing debt-to-net assets ratio also declined, due to a decrease in short-term borrowings and an increase in retained earnings, among other factors. - FY2023-Q2Coexistence of increased borrowings and higher repayment and financial burdensAnnual report
「Liabilities totaled ¥17.098 billion, an increase of ¥2.600 billion (17.9%) from the end of the previous consolidated fiscal year. The main factor was a ¥2.227 billion (19.5%) increase in interest-bearing debt.」
Although there was a net increase of ¥440 million in short-term borrowings and proceeds of ¥405 million from long-term borrowings, interest-bearing debt increased by 19.5%, while the current ratio and equity ratio also declined. - FY2023-Q1Increase in interest-bearing debt associated with securing inventoryAnnual report
「Liabilities totaled ¥15.944 billion, an increase of ¥1.446 billion (10.0%) from the end of the previous consolidated fiscal year. The main factors were a ¥171 million (93.0%) decrease in income taxes payable, and increases of ¥953 million (37.4%) in accounts payable and ¥622 million (5.4%) in interest-bearing debt.」
Accounts payable and interest-bearing debt increased against a backdrop of inventory and working capital requirements associated with responding to supply shortages. - FY2022Coexistence of improved operating cash flow and increased foreign-currency borrowingsAnnual report
「For the fiscal year ended March 2022, operating cash flow was positive due to an increase in retained earnings and a decrease in trade receivables, among other factors, and the company repaid part of its borrowings. However, the yen's depreciation increased the yen-converted amount of foreign-currency borrowings, resulting in an increase in interest-bearing debt.」
Operating cash flow turned positive and the company also repaid part of its borrowings. However, interest-bearing debt increased because the yen depreciation increased the yen-converted amount of foreign-currency borrowings. - FY2022-Q2AdvancedAnnual report
「The main factors were increases of ¥427 million (15.9%) in accounts payable and ¥178 million (33.0%) in other current liabilities, partly offset by a ¥761 million (6.9%) decrease in interest-bearing debt.」
Interest-bearing debt decreased by 6.9% from the end of the previous consolidated fiscal year, indicating an improvement in financing and financial strength. Outflows for repayment of long-term borrowings were ¥858 million. - FY2022-Q1AdvancedAnnual report
「The main factors were a ¥168 million (31.3%) increase in other current liabilities, partly offset by decreases of ¥1.444 billion (13.0%) in interest-bearing debt and ¥120 million (54.5%) in income taxes payable.」
Interest-bearing debt decreased by 13.0% from the end of the previous consolidated fiscal year, indicating an improvement in financing and financial strength. - FY2021AdvancedAnnual 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.」
The company raised funds through borrowings to meet working capital needs, increasing the balance of interest-bearing debt from ¥9.910 billion at the end of the previous fiscal year to ¥11.102 billion. - FY2021-Q3AdvancedAnnual report
「The main factors were increases of ¥1.024 billion (44.7%) in accounts payable and ¥237 million (54.8%) in other current liabilities, partly offset by a ¥1.445 billion (14.6%) decrease in interest-bearing debt.」
Interest-bearing debt decreased by 14.6% from the end of the previous consolidated fiscal year, indicating a quantitative improvement in financing and financial strength. - FY2021-Q2AdvancedAnnual report
「Cash flows from financing activities resulted in an increase in funds of ¥2.173 billion. The main factors were outflows of ¥1.600 billion for repayment of long-term borrowings and ¥89 million for dividend payments, offset by a net increase of ¥3.228 billion in short-term borrowings and proceeds of ¥640 million from long-term borrowings.」
The company raised funds through a net increase in short-term borrowings and long-term borrowings. Funds from financing activities increased by ¥2.173 billion, and interest-bearing debt also increased by 20.2% from the end of the previous fiscal year. - FY2020Coexistence of lower interest-bearing debt and higher dependence on debtAnnual report
「For the fiscal year ended March 2020, cash flows from operating activities were negative because the decrease in trade payables exceeded the decrease in inventories. However, interest-bearing debt decreased as cash and deposits were used to repay borrowings as part of efforts to improve cash efficiency.」
Cash and deposits were used to repay borrowings, reducing interest-bearing debt, while operating cash flow was negative and the interest-bearing debt ratio increased from 50.6% to 54.5%. - FY2020-Q3Financing through an increase in interest-bearing debtAnnual report
「The main factors were a ¥1.540 billion (36.6%) decrease in accounts payable and a ¥1.969 billion (18.8%) increase in interest-bearing debt.」
Although funds were raised through an increase in interest-bearing debt, the interest-bearing debt-to-net assets ratio rose to 2.4x, up 0.4 percentage points from the end of the previous consolidated fiscal year, indicating a deterioration from the standpoint of financial strength. - FY2020-Q2AdvancedAnnual report
「Cash flows from financing activities resulted in an increase in funds of ¥2.355 billion. The main factors were outflows of ¥1.488 billion for repayment of long-term borrowings and ¥89 million for dividend payments, offset by a net increase of ¥2.690 billion in short-term borrowings and proceeds of ¥1.284 billion from long-term borrowings.」
The company raised funds through a net increase in short-term borrowings and long-term borrowings. At the same time, it repaid long-term borrowings and paid dividends, resulting in a ¥2.355 billion increase in funds from financing activities. - FY2020-Q1AdvancedAnnual report
「The main factors were increases of ¥152 million (22.1%) in other current liabilities, ¥52 million (263.6%) in income taxes payable, and ¥45 million (1.1%) in accounts payable, partly offset by a ¥413 million (3.9%) decrease in interest-bearing debt.」
Interest-bearing debt at the end of the first quarter decreased by ¥413 million, or 3.9%, from the end of the previous consolidated fiscal year, confirming a quantitative improvement in the financial position. - FY2019AdvancedAnnual 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 flows from operating activities increased by ¥5.994 billion, while the balance of interest-bearing debt declined from ¥13.362 billion to ¥10.482 billion and the interest-bearing debt ratio decreased from 61.6% to 50.6%. - FY2019-Q2AdvancedAnnual report
「Cash flows from financing activities resulted in a decrease in funds of ¥2.151 billion. The main factors were proceeds of ¥400 million from long-term borrowings, offset by outflows of ¥2.117 billion for repayment of long-term borrowings, ¥271 million for dividend payments, and a net decrease of ¥120 million in short-term borrowings.」
Funds from financing activities decreased by ¥2.151 billion, mainly due to repayment of long-term borrowings and a net decrease in short-term borrowings. - FY2018-Q3AdvancedAnnual report
「Pursuant to a resolution of the Board of Directors at its meeting held on 20 November 2017, the Company issued 200,000 new shares through a public offering and disposed of 190,000 treasury shares through a public offering, with 6 December 2017 as the payment date. During the third quarter cumulative period, capital stock increased by ¥331.140 million, capital surplus increased by ¥602.215 million, and treasury shares decreased by ¥358.090 million.」
The Company carried out a public offering of new shares and a public offering of treasury shares, increasing capital stock and capital surplus. In addition, a 69,000-share third-party allotment in connection with an over-allotment was conducted, with the funds designated for repayment of borrowings. - FY2018-Q2AdvancedAnnual report
「Net cash provided by financing activities increased funds by ¥1,853 million. The main factors were proceeds of ¥3,204 million from long-term borrowings and a net increase of ¥1,288 million in short-term borrowings, despite expenditures of ¥2,481 million for repayment of long-term borrowings and ¥143 million for dividend payments.」
Funding through increases in long-term and short-term borrowings was carried out, resulting in an ¥1,853 million increase in net cash provided by financing activities during the second quarter cumulative period. - FY2017RestatedAnnual report
「Going forward, in addition to raising business funds through borrowings from financial institutions, we will diversify our funding sources through such means as new share issues, syndicated loans and bond issues, while working to strengthen our financial position.」
The company reiterates its funding policy of combining borrowings, new shares, syndicated loans and bonds. - FY2016First statedAnnual report
「Going forward, in addition to raising business funds through borrowings from financial institutions, we will diversify our funding sources through such means as new share issues, syndicated loans and bond issues, while working to strengthen our financial position.」
In addition to borrowings, the company cites new shares, syndicated loans and bonds as funding methods.