Risks from Reliance on Interest-Bearing Debt, Rising Interest Rates and Financial Covenants
First written in FY2016. 21 of 29 entries say "Mitigated", first in FY2019-Q3. Latest entry: 2026-09-11.
Eternal Hospitality Group moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2017: 26 of 105 companies on the "Worse" side.
83 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「Long-term borrowings ¥2,067.034 million ¥1,641.848 million」
Long-term borrowings decreased from ¥2,067.034 million at the end of July 2025 to ¥1,641.848 million at the end of January 2026. Repayment of long-term borrowings has reduced interest-bearing debt exposure. - FY2025-H1MitigatedAnnual report
「Cash flows from financing activities during the interim consolidated accounting period amounted to an outflow of ¥805.411 million. This was mainly due to the recording of expenditures for the repayment of long-term borrowings and other items.」
Long-term borrowings decreased from ¥2,353.765 million at the end of the previous fiscal year to ¥1,825.385 million, mainly due to ¥528.380 million in repayments, reducing interest-bearing debt exposure. - FY2024MitigatedAnnual report
「Interest-bearing debt, comprising borrowings and lease obligations, accounted for 16.5% of total assets as of 31 July 2024, remaining at」
The interest-bearing debt ratio decreased from 29.8% in the previous fiscal year to 16.5%, while the balance of interest-bearing debt decreased from ¥5,763,078 thousand to ¥3,414,005 thousand. - FY2024-Q3MitigatedAnnual report
「Liabilities at the end of the third quarter accounted for ¥12,560,902 thousand, an increase of ¥132,046 thousand from the end of the previous consolidated fiscal year. This was mainly because accounts payable, other accrued expenses and accrued corporate taxes increased, although liabilities decreased as a result of repayments of long-term borrowings.」
Long-term borrowings decreased from ¥1,958,857 thousand to ¥1,391,281 thousand as a result of repayments. The balance of borrowings, including the current portion, also decreased from the end of the previous fiscal year, and exposure to interest-bearing debt contracted. - FY2024-Q2MitigatedAnnual report
「Liabilities at the end of the second quarter accounted for ¥12,390,730 thousand, a decrease of ¥38,124 thousand from the end of the previous consolidated fiscal year. This was mainly because accounts payable, other accrued expenses and accrued corporate taxes increased as business remained solid, while borrowings decreased as a result of repayments.」
Borrowings decreased as a result of repayments, reducing total liabilities by ¥38,124 thousand from the end of the previous consolidated fiscal year. Exposure to interest-bearing debt is contracting. - FY2024-Q1MitigatedAnnual report
「Liabilities at the end of the first quarter accounted for ¥12,041,989 thousand, a decrease of ¥386,866 thousand from the end of the previous consolidated fiscal year. This was mainly due to decreases in the provision for bonuses, long-term borrowings and other liabilities.」
Liabilities decreased by ¥386,866 thousand from the end of the previous consolidated fiscal year due to decreases in long-term borrowings and other liabilities, and exposure to interest-bearing debt contracted. - FY2023MitigatedAnnual report
「Interest-bearing debt, comprising borrowings and lease obligations, accounted for 29.8% of total assets as of 31 July 2023, a high level.」
The interest-bearing debt ratio decreased from 33.9% in the previous fiscal year to 29.8%, while the balance of interest-bearing debt decreased from ¥6,254,019 thousand to ¥5,763,078 thousand. - FY2023-Q3MitigatedAnnual report
「Current portion of long-term borrowings 976,960 865,303 Long-term borrowings 5,209,169 5,148,049」
The combined balance of the current portion of long-term borrowings and long-term borrowings decreased from ¥6,186,129 thousand at the end of the previous consolidated fiscal year to ¥6,013,352 thousand. Exposure to interest-bearing debt contracted slightly. - FY2023-Q2WorsenedAnnual report
「Proceeds from long-term borrowings 600,000 Repayments of long-term borrowings △518,596」
During the six-month period, we raised ¥600,000 thousand in long-term borrowings and repaid ¥518,596 thousand. Long-term borrowings increased from ¥5,209,169 thousand at the end of the previous consolidated fiscal year to ¥5,337,241 thousand, and exposure to interest-bearing debt expanded slightly. - FY2023-Q1MitigatedAnnual report
「Liabilities at the end of the first quarter accounted for ¥11,082,921 thousand, a decrease of ¥1,046,601 thousand from the end of the previous consolidated fiscal year. This was mainly due to decreases in accrued corporate taxes, long-term borrowings and other liabilities.」
Liabilities decreased by ¥1,046,601 thousand from the end of the previous consolidated fiscal year due to decreases in long-term borrowings and other liabilities. Exposure to interest-bearing debt is contracting. - FY2022MitigatedAnnual report
「Because the Group primarily finances store construction costs, security deposits and other store-opening costs through borrowings from financial institutions, interest-bearing debt, comprising borrowings and lease obligations, accounted for 33.9% of total assets as of 31 July 2022, a high level.」
The interest-bearing debt ratio decreased from 46.2% at the end of the previous fiscal year to 33.9%, while the balance of interest-bearing debt decreased from ¥7,785,954 thousand to ¥6,254,019 thousand. Financial exposure is contracting due to repayments of long-term borrowings and other factors. - FY2022-Q3MitigatedAnnual report
「Liabilities at the end of the third quarter accounted for ¥11,897,510 thousand, an increase of ¥283,994 thousand from the end of the previous consolidated fiscal year. This was mainly because accounts payable and other accrued expenses increased, although long-term borrowings decreased as a result of repayments.」
Although total liabilities increased, long-term borrowings decreased from ¥6,186,129 thousand at the end of the previous consolidated fiscal year to ¥5,438,351 thousand as a result of repayments, narrowing exposure to interest-bearing debt. - FY2022-Q2MitigatedAnnual report
「Liabilities at the end of the second quarter accounted for ¥11,887,551 thousand, an increase of ¥274,035 thousand from the end of the previous consolidated fiscal year. This was mainly because accounts payable and other accrued expenses increased, although long-term borrowings decreased as a result of repayments.」
Long-term borrowings decreased from ¥6,186,129 thousand at the end of the previous consolidated fiscal year to ¥5,667,533 thousand as a result of repayments, narrowing exposure to interest-bearing debt. - FY2022-Q1MitigatedAnnual report
「Liabilities at the end of the first quarter accounted for ¥11,795,746 thousand, an increase of ¥182,230 thousand from the end of the previous consolidated fiscal year. This was mainly because accounts payable and other accrued expenses increased, although long-term borrowings decreased as a result of repayments.」
Long-term borrowings decreased from ¥6,186,129 thousand at the end of the previous consolidated fiscal year to ¥5,896,715 thousand as a result of repayments. Exposure to interest-bearing debt is contracting. - FY2021WorsenedAnnual report
「Interest-bearing debt, comprising borrowings and lease obligations, accounted for 46.2% of total assets as of 31 July 2021, a high level.」
The interest-bearing debt ratio increased from 44.7% at the end of the previous fiscal year to 46.2%. The balance of interest-bearing debt was ¥7,785,954 thousand, and the risks of higher interest rates and breaches of financial covenants remain. - FY2021-Q2MitigatedAnnual report
「Liabilities at the end of the second quarter accounted for ¥12,476,320 thousand, a decrease of ¥1,809,688 thousand from the end of the previous fiscal year. This was mainly due to repayments of interest-bearing debt, including long-term borrowings.」
Repayments of interest-bearing debt, including long-term borrowings, reduced liabilities by ¥1,809,688 thousand from the end of the previous fiscal year. Exposure arising from reliance on interest-bearing debt is contracting. - FY2021-Q1MitigatedAnnual report
「Liabilities at the end of the first quarter accounted for ¥13,874,030 thousand, a decrease of ¥411,977 thousand from the end of the previous fiscal year. This was mainly due to a decrease in long-term borrowings resulting from repayments and a decrease in deferred revenue.」
Liabilities decreased by ¥411,977 thousand from the end of the previous fiscal year, mainly due to a decrease in long-term borrowings resulting from repayments. - FY2020WorsenedAnnual report
「Because we primarily finance store construction costs, security deposits and other store-opening costs through borrowings from financial institutions, interest-bearing debt, comprising borrowings and lease obligations, accounted for 44.7% of total assets as of 31 July 2020, a high level.」
The interest-bearing debt ratio rose substantially from 22.3% in the previous fiscal year to 44.7%. The balance of interest-bearing debt also increased from ¥3,821,672 thousand to ¥8,912,615 thousand, reflecting expanded exposure resulting from borrowings made in preparation for the COVID-19 pandemic. - FY2020-Q3WorsenedAnnual report
「During the nine-month period, we raised an additional ¥2,500,000 thousand to secure cash on hand in preparation for the uncertain outlook resulting from the global spread of COVID-19.」
We raised an additional ¥2,500,000 thousand in preparation for the uncertain outlook resulting from COVID-19. On the balance sheet, long-term borrowings also increased from ¥1,710,236 thousand at the end of the previous fiscal year to ¥3,693,619 thousand, and exposure to interest-bearing debt expanded again. - FY2020-Q2MitigatedAnnual report
「Liabilities at the end of the second quarter accounted for ¥9,841,891 thousand, a decrease of ¥762,024 thousand from the end of the previous fiscal year. This was mainly due to repayments of interest-bearing debt, including long-term borrowings.」
Repayments of interest-bearing debt, including long-term borrowings, reduced liabilities by ¥762,024 thousand from the end of the previous fiscal year, narrowing financial exposure. - FY2020-Q1MitigatedAnnual report
「Liabilities at the end of the first quarter accounted for ¥9,830,653 thousand, a decrease of ¥773,262 thousand from the end of the previous fiscal year. This was mainly due to decreases in long-term borrowings resulting from repayments and in deferred revenue.」
Long-term borrowings decreased due to repayments, and total liabilities decreased by ¥773,262 thousand from the end of the previous fiscal year. Exposure to interest-bearing debt is contracting. - FY2019MitigatedAnnual report
「Interest-bearing debt, comprising borrowings and lease obligations, accounted for 22.3% of total assets as of 31 July 2019, a high level.」
The interest-bearing debt ratio decreased from 25.1% in the previous fiscal year to 22.3%. The balance of interest-bearing debt also decreased from ¥4,716,269 thousand to ¥3,821,672 thousand. - FY2019-Q3MitigatedAnnual report
「Current portion of long-term borrowings 992,962 846,454 Long-term borrowings 1,926,439 1,890,212」
The combined balance of the current portion of long-term borrowings and long-term borrowings decreased from ¥2,919,401 thousand at the end of the previous fiscal year to ¥2,736,666 thousand. Exposure to interest-bearing debt has contracted. - FY2018WorsenedAnnual report
「Because we primarily finance store construction costs, security deposits and other store-opening costs through borrowings from financial institutions, interest-bearing debt, comprising borrowings and lease obligations, accounted for 25.1% of total assets as of 31 July 2018, a high level.」
The interest-bearing debt ratio increased from 23.4% in the previous fiscal year to 25.1%. In addition to reliance on borrowings to finance new store openings, the filing continues to describe the impact of higher interest rates and breaches of financial covenants. - FY2018-Q3WorsenedAnnual report
「Liabilities at the end of the third quarter accounted for ¥11,373,940 thousand, an increase of ¥1,765,458 thousand from the end of the previous fiscal year. This was mainly due to an increase in long-term borrowings to finance new store openings.」
Long-term borrowings increased to finance new store openings, and liabilities increased by ¥1,765,458 thousand from the end of the previous fiscal year. Exposure to interest-bearing debt has expanded. - FY2017WorsenedAnnual report
「Because we primarily finance store construction costs, security deposits and other store-opening costs through borrowings from financial institutions, interest-bearing debt, comprising borrowings and lease obligations, accounted for 23.4% of total assets as of 31 July 2017, a high level.」
The interest-bearing debt ratio increased from 19.0% to 23.4%. The filing continues to describe the risk of an impact on financial condition and operating results from higher interest rates and breaches of financial covenants. - FY2016First statedAnnual report
「Because we primarily finance store construction costs, security deposits and other store-opening costs through borrowings from financial institutions, interest-bearing debt, comprising borrowings and lease obligations, accounted for 19.0% of total assets as of 31 July 2016, a high level.」
The filing quantifies the Company's reliance on borrowings to finance store openings and describes the potential impact on financing and operating results from higher interest rates or a breach of financial covenants.