Reliance on Interest-Bearing Debt and Financing Uncertainty
First written in FY2019. 17 of 27 entries say "Worsened", first in FY2021-Q1. Latest entry: 2026-08-14.
FaithNetwork moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
The whole theme swung hardest in 2017: 26 of 105 companies on the "Worse" side.
81 other companies' latest entry also says "Worsened".
- FY2026MitigatedAnnual report
「Balance of interest-bearing debt (a) 16,054,412 18,207,778 Total assets (b) 30,036,340 34,587,191 Reliance on interest-bearing debt (a／b) 53.4% 52.6%」
Although interest-bearing debt increased, the interest-bearing debt-to-total assets ratio declined from 53.4% to 52.6% as total assets increased. - FY2026-H1WorsenedAnnual report
「Liabilities increased by ¥5,760,517 thousand from the end of the previous consolidated fiscal year to ¥26,031,561 thousand. This was mainly due to increases of ¥6,515,243 thousand in borrowings and ¥684,188 thousand in construction accounts payable, partly offset by decreases of ¥934,849 thousand in income taxes payable and ¥404,295 thousand in advances received for construction in progress.」
As sales inventory and real estate held for sale under development increased, borrowings rose by ¥6,515,243 thousand from the end of the previous consolidated fiscal year, and total liabilities increased by ¥5,760,517 thousand. - FY2025MitigatedAnnual report
「Balance of interest-bearing debt (a) 15,967,665 16,054,412 Total assets (b) 26,609,442 30,036,340 Reliance on interest-bearing debt (a／b) 60.0% 53.4%」
Although the balance of interest-bearing debt increased slightly, reliance on interest-bearing debt declined from 60.0% to 53.4% due to the increase in total assets. - FY2025-H1WorsenedAnnual report
「Liabilities increased by ¥3,937,874 thousand from the end of the previous consolidated fiscal year to ¥23,115,614 thousand. This was mainly due to increases of ¥4,525,301 thousand in borrowings and ¥375,260 thousand in construction accounts payable, partly offset by decreases of ¥647,619 thousand in advances received and ¥272,852 thousand in advances received for construction in progress.」
As assets were built up for future sales, borrowings increased by ¥4,525,301 thousand from the end of the previous consolidated fiscal year, and total liabilities increased by ¥3,937,874 thousand. - FY2024WorsenedAnnual report
「Balance of interest-bearing debt (a) 9,916,495 15,967,665 Total assets (b) 20,598,033 26,609,442 Reliance on interest-bearing debt (a／b) 48.1% 60.0%」
The company discloses that the balance of interest-bearing debt increased from ¥9,916,495 thousand to ¥15,967,665 thousand, while reliance on interest-bearing debt rose from 48.1% to 60.0%. - FY2024-Q3WorsenedAnnual report
「Liabilities totaled ¥24,427.340 million. The main components were borrowings of ¥20,489.831 million, construction accounts payable of ¥1,769.297 million, advances received of ¥647.955 million, and amounts received for construction in progress of ¥567.521 million.」
At the end of the third quarter following the transition to consolidated accounting, borrowings amounted to ¥20,489,831 thousand and liabilities to ¥24,427,340 thousand, indicating increases in borrowings and the scale of liabilities from the previous quarter-end. - FY2024-Q2WorsenedAnnual report
「Total liabilities amounted to ¥20,621,926 thousand. The main components were borrowings of ¥16,844,916 thousand, construction accounts payable of ¥1,570,650 thousand, advances received of ¥648,354 thousand, and advances received for construction in progress of ¥518,854 thousand.」
Following the transition to consolidated accounting, total liabilities amounted to ¥20,621,926 thousand and borrowings to ¥16,844,916 thousand, indicating an increase in the financial burden associated with reliance on borrowing. - FY2024-Q1WorsenedAnnual report
「This was mainly due to a ¥3,260,867 thousand increase in borrowings, partly offset by a ¥654,230 thousand decrease in income taxes payable.」
At the end of the first quarter, borrowings had increased by ¥3,260,867 thousand from the end of the previous fiscal year, indicating greater reliance on borrowing as assets were built up for future sales. - FY2023MitigatedAnnual report
「Balance of interest-bearing debt (a) 9,199,309 9,916,495 Total assets (b) 16,826,262 20,598,033 Reliance on interest-bearing debt (a／b) 54.7% 48.1%」
Although the balance of interest-bearing debt increased, reliance on interest-bearing debt declined from 54.7% to 48.1% due to the increase in total assets. - FY2023-Q3WorsenedAnnual report
「This was mainly due to increases of ¥3,833,224 thousand in borrowings and ¥645,776 thousand in construction accounts payable, partly offset by decreases of ¥518,750 thousand in advances received for construction in progress and ¥200,103 thousand in income taxes payable resulting from tax payments.」
Borrowings increased by ¥3,833,224 thousand from the end of the previous fiscal year, and total liabilities increased by ¥3,766,302 thousand. - FY2023-Q2WorsenedAnnual report
「This was mainly due to a ¥2,183,256 thousand increase in borrowings associated with an increase in sales inventory, partly offset by decreases of ¥346,474 thousand in advances received for construction in progress and ¥241,086 thousand in income taxes payable.」
As sales inventory increased, borrowings rose by ¥2,183,256 thousand from the end of the previous fiscal year, and liabilities increased by ¥1,714,357 thousand. - FY2023-Q1Smaller increase in borrowingsAnnual report
「This was mainly due to increases of ¥272.557 million in borrowings and ¥101.267 million in accounts payable for construction, while income taxes payable decreased by ¥297.236 million.」
Borrowings also increased at the end of the first quarter, but by less than the increases reported from FY2022-Q1 to FY2022-Q3, and the increase in liabilities this time was limited to ¥49,690 thousand. - FY2022WorsenedAnnual report
「Balance of interest-bearing debt (a) 5,982,701 9,199,309 Total assets (b) 12,632,828 16,826,262 Reliance on interest-bearing debt (a／b) 47.4% 54.7%」
The balance of interest-bearing debt increased from ¥5,982,701 thousand to ¥9,199,309 thousand, while reliance on interest-bearing debt increased from 47.4% to 54.7%. - FY2022-Q3WorsenedAnnual report
「This was mainly due to increases of ¥6,302,799 thousand in borrowings, ¥578,337 thousand in construction accounts payable and ¥303,312 thousand in advances received for construction in progress, partly offset by a ¥355,413 thousand decrease in accounts payable and income taxes payable resulting from tax payments.」
Borrowings increased by ¥6,302,799 thousand as real estate held for sale under development increased, and total liabilities increased by ¥6,850,705 thousand. - FY2022-Q2WorsenedAnnual report
「Liabilities increased by ¥5,601,332 thousand from the end of the previous fiscal year to ¥13,583,175 thousand. This was mainly due to a ¥5,803,525 thousand increase in borrowings associated with an increase in sales inventory, partly offset by a ¥231,244 thousand decrease in income taxes payable.」
Borrowings increased by ¥5,803,525 thousand as sales inventory increased, and total liabilities increased by ¥5,601,332 thousand. The increase was larger than the ¥3,552,663 thousand increase in borrowings in the previous quarter. - FY2022-Q1WorsenedAnnual report
「This was mainly due to a ¥3,552,663 thousand increase in borrowings, together with decreases of ¥234,496 thousand in income taxes payable, ¥97,786 thousand in accounts payable and ¥89,567 thousand in construction accounts payable.」
Borrowings increased by ¥3,552,663 thousand at the end of the first quarter, resulting in a ¥3,102,373 thousand increase in liabilities from the end of the previous fiscal year. - FY2021MitigatedAnnual report
「Balance of interest-bearing debt (a) 7,025,632 5,982,701 Total assets (b) 13,295,926 12,632,828 Reliance on interest-bearing debt (a／b) 52.8% 47.4%」
The balance of interest-bearing debt declined from ¥7,025,632 thousand to ¥5,982,701 thousand, while reliance on interest-bearing debt declined from 52.8% to 47.4%. - FY2021-Q3WorsenedAnnual report
「Liabilities decreased by ¥510.327 million from the end of the previous fiscal year to ¥8,556.472 million. This was mainly due to a ¥487.343 million increase in borrowings, while accounts payable for construction decreased by ¥794.193 million and income taxes payable by ¥136.465 million as taxes were paid.」
After borrowings declined in the previous quarter, they had increased by ¥487,343 thousand at the end of the third quarter. - FY2021-Q2MitigatedAnnual report
「This was due to a ¥610,193 thousand decrease in borrowings and an ¥819,092 thousand decrease in construction accounts payable as sales inventory declined.」
As sales inventory declined, borrowings decreased by ¥610,193 thousand, and the balances of liabilities and borrowings decreased from the end of the previous fiscal year. - FY2021-Q1WorsenedAnnual report
「Liabilities increased by ¥1,213,822 thousand from the end of the previous fiscal year to ¥10,280,622 thousand. This was mainly due to a ¥1,435,820 thousand increase in borrowings」
Borrowings increased by ¥1,435,820 thousand from the end of the previous fiscal year, while liabilities increased by ¥1,213,822 thousand, indicating a shift from the decline in reliance on interest-bearing debt at the previous fiscal year-end to increased borrowing during the quarter. - FY2020MitigatedAnnual report
「Reliance on interest-bearing debt (a／b) 61.4% 52.8%」
The company discloses that reliance on interest-bearing debt declined from 61.4% at the end of the previous fiscal year to 52.8%. At the same time, it continues to describe risks relating to borrowing and changes in the lending environment. - FY2020-Q2RestatedAnnual report
「Cash used in operating activities amounted to ¥1,860,859 thousand, compared with ¥5,078,206 thousand used in the same period of the previous year. This was mainly attributable to a ¥1,211,990 thousand increase in inventories as the scale of real estate development expanded and sales inventory was steadily built up, a ¥76,356 thousand quarterly net loss before taxes, a ¥340,418 thousand decrease in construction accounts payable, and a ¥105,871 thousand decrease in advances received for construction in progress, among other factors.」
The company continues to report negative operating cash flow associated with building up sales inventory. The amount of cash used decreased from the same period of the previous year. - FY2019First statedAnnual report
「As the scale of the business expanded, real estate held for sale under development increased during the 17th and 18th fiscal years, resulting in negative operating cash flow.」
The company discloses as risks that it primarily finances real estate purchases through borrowing, that its reliance on interest-bearing debt rose from 59.9% to 61.4%, and that negative operating cash flow has actually occurred.