Interest Rate and Liquidity Risks Associated with Bank Borrowings
First written in FY2017. 22 of 33 entries say "Worsened", first in FY2018-Q3. Latest entry: FY2026.
MarketEnterprise moved to the "Worse" side of this theme in 2018, 7 years before the typical company in this theme (2025).
The whole theme swung hardest in 2022: 4 of 26 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「This was mainly attributable to a ¥112.498 million decrease due to repayment of short-term borrowings.」
Short-term borrowings decreased by ¥112.498 million from the end of the previous fiscal year, slightly reducing borrowing exposure. Meanwhile, the commitment line and financial covenants remain in place. - FY2026-H1WorsenedAnnual report
「To secure flexible working capital funding, the Company entered into a loan agreement with a financial institution containing financial terms and conditions, namely a commitment line agreement. (2) Commitment amount Total: ¥1.5 billion (6) Commitment period 28 November 2025 to 27 November 2026 (7) Borrowing balance at the end of the interim period ¥1.5 billion (8) Financial covenants The agreement includes certain financial covenants concerning the amount of net assets on the consolidated balance sheet and operating profit on the consolidated income statement as of the fiscal year-end.」
While the short-term borrowing balance decreased by ¥100.000 million from the end of the previous fiscal year, the company entered into a syndicated commitment line totaling ¥1.5 billion and had borrowed ¥1.5 billion at the end of the interim period. Financial covenants based on net assets and operating profit were also specified. - FY2025MitigatedAnnual report
「This was mainly attributable to increases of ¥192.102 million in accounts payable, ¥89.850 million in income taxes payable and other liabilities, ¥87.692 million in other current liabilities due to increases in consumption taxes payable and other items, and ¥56.477 million in accrued expenses, partly offset by a ¥133.336 million decrease in short-term borrowings.」
Short-term borrowings decreased by ¥133.336 million. However, total liabilities increased by ¥285.817 million due to increases in accounts payable and other items, while the commitment line and financial covenants remain in place. - FY2025-H1MitigatedAnnual report
「Decrease of ¥24.996 million due to repayment of short-term borrowings」
Short-term borrowings decreased by ¥24.996 million from the end of the previous fiscal year, slightly reducing borrowing exposure. Meanwhile, the commitment line and financial covenants remain in place. - FY2024WorsenedAnnual report
「Current liabilities increased by ¥898.616 million from the previous consolidated fiscal year to ¥3,976.241 million. This was mainly attributable to increases of ¥589.466 million in short-term interest-bearing liabilities and ¥270.899 million in accounts payable.」
Short-term interest-bearing liabilities increased, and total liabilities increased by ¥887.006 million from the end of the previous fiscal year to ¥4,038.956 million, expanding borrowing and liquidity exposure. - FY2024-Q3WorsenedAnnual report
「Liabilities at the end of the third quarter of the current consolidated fiscal year increased by ¥781.533 million from the end of the previous consolidated fiscal year to ¥3,933.484 million. This was mainly attributable to an ¥845.834 million increase in short-term borrowings from new funding.」
Total liabilities increased by ¥781.533 million from the end of the previous fiscal year due to new short-term borrowings, expanding exposure to borrowing and liquidity risks. - FY2024-Q2WorsenedAnnual report
「Liabilities at the end of the second quarter of the current consolidated fiscal year increased by ¥417.650 million from the end of the previous consolidated fiscal year to ¥3,569.601 million. This was mainly attributable to a ¥700.000 million increase in short-term borrowings from new funding, partly offset by decreases of ¥101.653 million in long-term borrowings due within one year and ¥135.292 million in income taxes payable and other liabilities. To secure flexible working capital funding, the Company has entered into a commitment line agreement with a financial institution. The agreement includes financial covenants based on certain metrics calculated from the consolidated balance sheet and consolidated income statement, among other financial statements.」
Liabilities increased by ¥417.650 million from the end of the previous fiscal year due to an increase in short-term borrowings, expanding borrowing and liquidity exposure. The company explicitly states that the commitment line is subject to financial covenants. - FY2024-Q1WorsenedAnnual report
「This was mainly attributable to a ¥200.000 million increase in short-term borrowings from new funding, partly offset by decreases of ¥185.975 million in income taxes payable and other liabilities and ¥51.902 million in long-term borrowings due within one year.」
While long-term borrowings and other borrowings decreased, short-term borrowings increased by ¥200.000 million, bringing the short-term borrowing balance to ¥1,700.000 million. The composition of borrowing and liquidity exposure expanded around short-term borrowings. - FY2023WorsenedAnnual report
「Liabilities at the end of the current consolidated fiscal year increased by ¥916.659 million from the end of the previous consolidated fiscal year to ¥3,151.950 million. This was mainly attributable to increases of ¥700.000 million in short-term borrowings and ¥160.082 million in income taxes payable and other liabilities.」
While long-term borrowings decreased, short-term borrowings increased by ¥700.000 million, and total liabilities also increased by ¥916.659 million from the end of the previous fiscal year, expanding borrowing and liquidity exposure. - FY2023-Q3WorsenedAnnual report
「Liabilities at the end of the third quarter of the current consolidated fiscal year increased by ¥824.406 million from the end of the previous consolidated fiscal year to ¥3,059.697 million. This was mainly attributable to increases of ¥801.000 million in short-term borrowings, ¥113.663 million in accounts payable, ¥28.963 million in accrued expenses and ¥38.645 million in income taxes payable and other liabilities, partly offset by decreases of ¥54.500 million in long-term borrowings due within one year and ¥132.904 million in long-term borrowings.」
While long-term borrowings decreased, short-term borrowings increased by ¥801.000 million, and total liabilities also increased by ¥824.406 million, expanding borrowing and liquidity exposure. - FY2023-Q2WorsenedAnnual report
「Liabilities at the end of the second quarter of the current consolidated fiscal year increased by ¥745.607 million from the end of the previous consolidated fiscal year to ¥2,980.898 million. This was mainly attributable to an ¥801.000 million increase in short-term borrowings from new funding, partly offset by a ¥118.818 million decrease in long-term borrowings, including long-term borrowings due within one year.」
While long-term borrowings decreased, short-term borrowings increased by ¥801.000 million, and total liabilities also increased by ¥745.607 million from the end of the previous fiscal year, expanding borrowing and liquidity exposure. - FY2023-Q1WorsenedAnnual report
「Liabilities at the end of the first quarter of the current consolidated fiscal year increased by ¥446.400 million from the end of the previous consolidated fiscal year to ¥2,681.691 million. This was mainly attributable to a ¥400.000 million increase in short-term borrowings from new funding and a ¥139.824 million increase in accounts payable, partly offset by a ¥29.853 million decrease in income taxes payable and other liabilities and a ¥65.253 million decrease in long-term borrowings, including long-term borrowings due within one year.」
While long-term borrowings decreased, total liabilities increased by ¥446.400 million from the end of the previous fiscal year as a result of new short-term borrowings, expanding borrowing and liquidity exposure. - FY2022WorsenedAnnual report
「Liabilities at the end of the current consolidated fiscal year increased by ¥426.537 million from the end of the previous consolidated fiscal year to ¥2,235.290 million. This was mainly attributable to increases of ¥800.000 million in short-term borrowings, ¥77.777 million in accrued expenses and ¥58.003 million in accounts payable, partly offset by a ¥173.783 million decrease in long-term borrowings due within one year.」
While long-term borrowings decreased, short-term borrowings increased by ¥800.000 million, and total liabilities increased by ¥426.537 million from the end of the previous fiscal year. - FY2022-Q3WorsenedAnnual report
「Liabilities at the end of the third quarter of the current consolidated fiscal year increased by ¥472.014 million from the end of the previous consolidated fiscal year to ¥2,280.768 million. This was mainly attributable to increases of ¥800.000 million in short-term borrowings, ¥115.692 million in accounts payable, ¥66.257 million in accrued expenses and ¥34.080 million in income taxes payable and other liabilities, partly offset by decreases of ¥168.782 million in long-term borrowings due within one year and ¥397.584 million in long-term borrowings.」
While long-term borrowings decreased, short-term borrowings increased by ¥800.000 million, and total liabilities also increased by ¥472.014 million from the end of the previous fiscal year, expanding borrowing and liquidity exposure. - FY2022-Q2WorsenedAnnual report
「Liabilities at the end of the second quarter of the current consolidated fiscal year increased by ¥130.742 million from the end of the previous consolidated fiscal year to ¥1,939.496 million. This was mainly attributable to increases of ¥500.000 million in short-term borrowings, ¥36.365 million in accounts payable, ¥30.919 million in accrued expenses and ¥27.464 million in income taxes payable and other liabilities, partly offset by decreases of ¥162.114 million in long-term borrowings due within one year and ¥328.998 million in long-term borrowings.」
While long-term borrowings decreased, short-term borrowings of ¥500.000 million were recorded, and total liabilities increased by ¥130.742 million from the end of the previous fiscal year. The composition of borrowing and liquidity exposure changed, and total liabilities increased. - FY2022-Q1MitigatedAnnual report
「Liabilities at the end of the first quarter of the current consolidated fiscal year decreased by ¥43.848 million from the end of the previous consolidated fiscal year to ¥1,764.905 million. This was mainly attributable to decreases of ¥35.689 million in long-term borrowings due within one year and ¥91.485 million in long-term borrowings.」
Long-term borrowings and long-term borrowings due within one year decreased, and total liabilities also declined, further reducing exposure associated with borrowings. Meanwhile, short-term borrowings of ¥100.000 million were recorded. - FY2021MitigatedAnnual report
「Non-current liabilities decreased by ¥238.217 million from the end of the previous consolidated fiscal year to ¥653.018 million. This was mainly attributable to a ¥254.439 million decrease in long-term borrowings.」
Regarding the borrowing exposure that had increased through the previous fiscal year, long-term borrowings and non-current liabilities decreased, reducing interest-rate and liquidity risks. - FY2021-Q3MitigatedAnnual report
「Long-term borrowings 859,747 696,793」
Long-term borrowings decreased from the end of the previous consolidated fiscal year, while total liabilities also decreased from ¥2,397.843 million to ¥2,043.013 million, reducing exposure associated with borrowings. - FY2021-Q2MitigatedAnnual report
「Liabilities at the end of the second quarter of the current consolidated fiscal year decreased by ¥228.194 million from the end of the previous consolidated fiscal year to ¥2,169.648 million. This was mainly attributable to decreases of ¥56.747 million in accounts payable, ¥104.011 million in income taxes payable and other liabilities and ¥52.724 million in long-term borrowings.」
Regarding the borrowing exposure that had expanded through the previous fiscal year, long-term borrowings decreased by ¥52.724 million, while total liabilities also decreased by ¥228.194 million. - FY2021-Q1MitigatedAnnual report
「Liabilities at the end of the first quarter of the current consolidated fiscal year decreased by ¥380.521 million from the end of the previous consolidated fiscal year to ¥2,017.321 million. This was mainly attributable to decreases of ¥136.163 million in income taxes payable and other liabilities and ¥110.674 million in long-term borrowings.」
Regarding the borrowing exposure that had expanded through the previous fiscal year, long-term borrowings decreased by ¥110.674 million, while total liabilities also decreased by ¥380.521 million. - FY2020WorsenedAnnual report
「Non-current liabilities increased by ¥517.920 million from the previous consolidated fiscal year to ¥891.236 million. This was mainly attributable to a ¥525.924 million increase in long-term borrowings.」
Long-term borrowings, including the portion due within one year, amounted to ¥1,324.699 million, up from ¥555.794 million in the previous fiscal year. Exposure to interest-rate and liquidity risks associated with borrowings increased. - FY2020-Q3WorsenedAnnual report
「Liabilities at the end of the third quarter of the current consolidated fiscal year increased by ¥316.748 million from the end of the previous consolidated fiscal year to ¥1,689.704 million. This was mainly attributable to a ¥106.073 million increase in accounts payable due to higher purchases and a ¥256.749 million increase in long-term borrowings.」
Long-term borrowings increased by ¥256.749 million from the end of the previous consolidated fiscal year, while total liabilities increased by ¥316.748 million, expanding exposure associated with borrowings. - FY2020-Q2WorsenedAnnual report
「Liabilities at the end of the second quarter of the current consolidated fiscal year increased by ¥215.260 million from the end of the previous consolidated fiscal year to ¥1,588.215 million. This was mainly attributable to increases of ¥51.623 million in accounts payable, ¥78.017 million in long-term borrowings due within one year and ¥191.150 million in long-term borrowings, partly offset by an ¥81.535 million decrease in income taxes payable and other liabilities.」
Long-term borrowings increased by ¥191.150 million and long-term borrowings due within one year increased by ¥78.017 million from the end of the previous consolidated fiscal year, further increasing exposure associated with borrowings. - FY2020-Q1WorsenedAnnual report
「Liabilities at the end of the first quarter of the current consolidated fiscal year increased by ¥167.653 million from the end of the previous consolidated fiscal year to ¥1,540.608 million. This was mainly attributable to increases of ¥65.156 million in accounts payable, ¥78.017 million in long-term borrowings due within one year and ¥246.703 million in long-term borrowings, partly offset by a ¥147.333 million decrease in income taxes payable and other liabilities.」
Long-term borrowings increased by ¥246.703 million and long-term borrowings due within one year increased by ¥78.017 million, while total liabilities increased by ¥167.653 million, expanding exposure associated with borrowings. - FY2019WorsenedAnnual report
「Non-current liabilities increased by ¥119.025 million from the previous consolidated fiscal year to ¥373.315 million. This was mainly attributable to a ¥105.112 million increase in long-term borrowings.」
Long-term borrowings, including the portion due within one year, amounted to ¥555.794 million, up from ¥387.584 million in the previous fiscal year. Exposure to interest-rate and liquidity risks associated with bank borrowings increased further. - FY2019-Q3WorsenedAnnual report
「Liabilities at the end of the third quarter of the current consolidated fiscal year increased by ¥425.845 million from the end of the previous consolidated fiscal year to ¥1,278.223 million. This was mainly attributable to a ¥113.808 million increase in accounts payable due to higher purchases and a ¥157.618 million increase in long-term borrowings.」
Long-term borrowings increased by ¥157.618 million from the end of the previous consolidated fiscal year amid expanded procurement, while total liabilities increased by ¥425.845 million, further increasing exposure associated with bank borrowings. - FY2019-Q2WorsenedAnnual report
「Liabilities at the end of the second quarter of the current consolidated fiscal year increased by ¥306.201 million from the end of the previous consolidated fiscal year to ¥1,158.579 million. This was mainly attributable to a ¥120.375 million increase in accounts payable due to higher purchases and a ¥140.827 million increase in long-term borrowings.」
Long-term borrowings increased by ¥140.827 million from the end of the previous consolidated fiscal year amid expanded procurement, while total liabilities increased by ¥306.201 million, further increasing exposure associated with bank borrowings. - FY2019-Q1WorsenedAnnual report
「This was mainly attributable to an increase of ¥31.378 million in long-term borrowings.」
Long-term borrowings increased by ¥31.378 million from the end of the previous consolidated fiscal year, increasing exposure to interest-rate and liquidity risks associated with bank borrowings. - FY2018WorsenedAnnual report
「Borrowings and lease obligations related to finance lease transactions are primarily intended to fund capital expenditures and are exposed to interest-rate fluctuations.」
Long-term borrowings, including the portion due within one year, amounted to ¥387.584 million, while lease obligations amounted to ¥32.626 million. Lease obligations, which were absent in the previous fiscal year, also arose. - FY2018-Q3WorsenedAnnual report
「This was mainly attributable to increases resulting from borrowing of ¥36.655 million in long-term borrowings due within one year, ¥100.000 million in short-term borrowings and ¥41.382 million in long-term borrowings.」
Borrowings of long-term borrowings due within one year, short-term borrowings and long-term borrowings increased from the end of the previous consolidated fiscal year, quantifying the company's exposure to existing bank borrowings. - FY2017First statedAnnual report
「The Group raises the funds required for capital expenditures associated with expanding its procurement bases and for working capital through bank borrowings. It has a policy of not entering into derivative transactions.」
The company states that capital expenditures for expanding its bases and working capital are funded through bank borrowings, exposing it to interest-rate risk on borrowings and liquidity risk in its funding.