Rising reliance on interest-bearing debt and difficulty obtaining financing
First written in FY2019. 20 of 28 entries say "Worsened", first in FY2020-Q1. Latest entry: FY2026.
WILLPLUS Holdings moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 63 of 142 companies on the "Worse" side.
83 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Total liabilities increased by ¥5,997 million from the end of the previous fiscal year to ¥31,023 million, due to increases in short-term borrowings and other items.」
Short-term borrowings increased from ¥8,100 million at the end of the previous fiscal year to ¥13,200 million. Interest expense also increased by 56.2% year on year due to higher borrowings and rising interest rates. - FY2026-H1MitigatedAnnual report
「Non-current liabilities decreased by ¥1,265 million from the end of the previous fiscal year to ¥5,710 million. This was mainly due to a ¥1,298 million decrease in long-term borrowings.」
While short-term borrowings increased by ¥300 million, long-term borrowings decreased by ¥1,298 million, resulting in decreases in non-current liabilities and total liabilities. Part of the exposure to interest-bearing debt declined. - FY2025WorsenedAnnual report
「As the scale of the business expands, the need for working capital is increasing, and the Group may need to raise funds through bank borrowings and other means as a result of conducting large-scale M&A transactions and other activities. Funding may become difficult due to higher interest expense resulting from rising interest rates or a decline in the Group's creditworthiness, among other factors, and」
Short-term borrowings increased by ¥2,949 million from the end of the previous fiscal year, and the overdraft facility limit expanded from ¥8.65 billion to ¥13.6 billion. Dependence on interest-bearing debt and funding risk increased in quantitative terms. - FY2025-H1WorsenedAnnual report
「Current liabilities increased by ¥3,200 million from the end of the previous fiscal year to ¥17,168 million. This was due to increases of ¥445 million in advances received resulting from higher order backlogs and ¥3,562 million in short-term borrowings, despite decreases of ¥193 million in accounts payable due to payments for merchandise and ¥544 million in other liabilities due to a decrease in unpaid consumption taxes and other items.」
Short-term borrowings increased by ¥3,562 million from the end of the previous fiscal year, and current liabilities also increased by ¥3,200 million. Exposure to interest-bearing debt dependence expanded during the interim period as well. - FY2024WorsenedAnnual report
「Total liabilities increased by ¥7,179 million from the end of the previous fiscal year to ¥21,077 million, due to increases in short-term and long-term borrowings.」
Short-term borrowings increased by ¥3,550 million and long-term borrowings by ¥2,597 million, while total liabilities also increased by ¥7,179 million. Exposure to interest-bearing debt increased. - FY2024-Q3WorsenedAnnual report
「Non-current liabilities increased by ¥1,453 million from the end of the previous consolidated fiscal year to ¥5,818 million. This was mainly due to an increase in long-term borrowings resulting from the implementation of a sustainability loan.」
Long-term borrowings increased following the implementation of a sustainability loan, and non-current liabilities increased by ¥1,453 million. Exposure to interest-bearing debt continued to expand. - FY2024-Q2WorsenedAnnual report
「Current liabilities increased by ¥721 million from the end of the previous fiscal year to ¥10,254 million. This was due to a ¥1,000 million increase in short-term borrowings and a ¥501 million increase in other current liabilities, mainly reflecting higher consumption taxes payable, despite decreases of ¥512 million in accounts payable due to payments for merchandise, ¥99 million in the current portion of long-term borrowings, and ¥105 million in advances received as vehicle deliveries progressed. Non-current liabilities decreased by ¥321 million from the end of the previous fiscal year to ¥4,042 million. This was mainly due to a ¥399 million decrease in long-term borrowings, partly offset by a ¥73 million increase in asset retirement obligations.」
While long-term borrowings and other items decreased, short-term borrowings increased by ¥1,000 million, and current liabilities increased by ¥721 million. Exposure to interest-bearing debt dependence increased again. - FY2024-Q1MitigatedAnnual report
「Non-current liabilities decreased by ¥175 million from the end of the previous fiscal year to ¥4,189 million. This was due mainly to a decrease in long-term borrowings resulting from scheduled repayments, among other factors.」
Long-term borrowings decreased due to scheduled repayments, and non-current liabilities decreased by ¥175 million from the end of the previous fiscal year. A partial reduction in exposure to interest-bearing debt was confirmed. - FY2023WorsenedAnnual report
「Non-current liabilities increased by ¥2,819 million from the end of the previous fiscal year to ¥4,364 million. This was mainly due to a ¥2,751 million increase in long-term borrowings, among other factors.」
While short-term borrowings decreased by ¥1,300 million, long-term borrowings increased by ¥2,751 million, and total liabilities increased by ¥4,098 million. Exposure to interest-bearing debt increased. - FY2023-Q3WorsenedAnnual report
「Current liabilities increased by ¥176 million from the end of the previous fiscal year to ¥8,431 million. This was mainly due to a ¥694 million increase in advances received associated with higher vehicle orders and a ¥1,717 million increase in accounts payable from merchandise purchases, partly offset by a ¥2,300 million decrease in short-term borrowings due to repayments, among other factors. Non-current liabilities increased by ¥3,004 million from the end of the previous fiscal year to ¥4,550 million. This was mainly due to an increase in long-term borrowings resulting from the implementation of a sustainability loan.」
While short-term borrowings decreased by ¥2,300 million, long-term borrowings increased following the implementation of a sustainability loan, and non-current liabilities increased by ¥3,004 million. Exposure to interest-bearing debt showed a trend toward expansion. - FY2023-Q1MitigatedAnnual report
「Non-current liabilities decreased by ¥97 million from the end of the previous fiscal year to ¥1,448 million. This was due to a ¥124 million decrease in long-term borrowings from scheduled repayments, partly offset by the recognition of ¥27 million in asset retirement obligations, among other factors.」
Long-term borrowings decreased by ¥124 million due to scheduled repayments, and non-current liabilities also decreased by ¥97 million. A partial reduction in exposure to interest-bearing debt was confirmed. - FY2022WorsenedAnnual report
「As the scale of the business expands, the need for working capital is increasing, and the Group may need to raise funds through bank borrowings and other means as a result of conducting large-scale M&A transactions and other activities. Funding may become difficult due to higher interest expense resulting from rising interest rates or a decline in the Group's creditworthiness, which could affect the Group's operating performance and financial position.」
Long-term borrowings increased by ¥600 million from the end of the previous fiscal year, and total liabilities also increased by ¥359 million. While borrowings were utilized, the risks associated with dependence on interest-bearing debt and difficulty in raising funds showed a further increase over the full year. - FY2022-Q3WorsenedAnnual report
「Non-current liabilities increased by ¥725 million from the end of the previous consolidated fiscal year to ¥1,656 million. This was mainly due to an increase in long-term borrowings.」
Non-current liabilities increased by ¥725 million due to an increase in long-term borrowings, expanding exposure to interest-bearing debt. Short-term borrowings decreased by ¥100 million, but the risk associated with dependence on borrowings continued to be quantified. - FY2022-Q2WorsenedAnnual report
「Non-current liabilities increased by ¥930 million from the end of the previous fiscal year to ¥1,861 million. This was mainly due to a ¥928 million increase in long-term borrowings.」
Long-term borrowings increased by ¥928 million, and non-current liabilities increased by ¥930 million. Although short-term borrowings decreased by ¥100 million, the current portion of long-term borrowings increased by ¥271 million, expanding exposure to interest-bearing debt. - FY2022-Q1WorsenedAnnual report
「Current liabilities increased by ¥128 million from the end of the previous fiscal year to ¥8,639 million. This was mainly due to increases of ¥200 million in short-term borrowings and ¥271 million in the current portion of long-term borrowings, partly offset by a ¥362 million decrease in income taxes payable following payment, among other factors. Non-current liabilities increased by ¥1,074 million from the end of the previous fiscal year to ¥2,005 million. This was mainly due to a ¥1,075 million increase in long-term borrowings, among other factors.」
Short-term borrowings increased by ¥200 million, the current portion of long-term borrowings by ¥271 million, and long-term borrowings by ¥1,075 million, expanding liabilities exposure, including borrowings. There is no disclosure indicating that difficulty in raising funds had occurred. - FY2021MitigatedAnnual report
「Total liabilities decreased by ¥1,080 million from the end of the previous fiscal year to ¥9,441 million, mainly due to decreases in accounts payable and borrowings.」
Short-term borrowings decreased by ¥700 million and long-term borrowings by ¥428 million, while total liabilities also decreased by ¥1,080 million. Exposure to interest-bearing debt dependence declined. - FY2021-Q3MitigatedAnnual report
「Current liabilities decreased by ¥31 million from the end of the previous fiscal year to ¥9,229 million. This was due mainly to a ¥903 million increase in advances received accompanying an increase in vehicle orders, a ¥132 million increase in other current liabilities due to increases in accounts payable and unpaid consumption taxes as business expanded, and a ¥199 million increase in unpaid corporate taxes, despite a ¥1,066 million decrease in accounts payable and a ¥200 million decrease in short-term borrowings. Non-current liabilities decreased by ¥279 million from the end of the previous fiscal year to ¥981 million. This was mainly because long-term borrowings decreased by ¥328 million through scheduled repayments, despite a ¥49 million increase in asset retirement obligations related to the acquisition of store equipment and other assets.」
Short-term and long-term borrowings decreased, and non-current liabilities also declined by ¥279 million from the end of the previous fiscal year. Repayments were confirmed to have reduced exposure in response to rising dependence on interest-bearing debt. - FY2021-Q2MitigatedAnnual report
「Non-current liabilities decreased by ¥199 million from the end of the previous fiscal year to ¥1,061 million. This was due mainly to a ¥216 million decrease in long-term borrowings from repayments, partly offset by a ¥17 million increase in asset retirement obligations associated with the acquisition of store facilities and other assets, among other factors.」
Long-term borrowings decreased by ¥216 million due to repayments, and non-current liabilities also decreased by ¥199 million. Part of the exposure to interest-bearing debt continued to decline. - FY2021-Q1MitigatedAnnual report
「Non-current liabilities decreased by ¥128 million from the end of the previous fiscal year to ¥1,133 million. This was mainly due to a ¥128 million decrease in long-term borrowings resulting from scheduled repayments, among other factors.」
While short-term borrowings remained unchanged from the end of the previous fiscal year at ¥3,700 million, long-term borrowings decreased by ¥128 million due to scheduled repayments, reducing part of the exposure to interest-bearing debt. - FY2020WorsenedAnnual report
「In particular, over the two most recent consolidated fiscal years, financing through bank borrowings increased as the Group actively acquired new brands and stores through business acquisitions and other transactions, while the need for working capital grew as the number of brands handled and stores increased, among other factors. As a result, dependence on interest-bearing debt has been rising.」
The company continued to explicitly identify rising dependence on interest-bearing debt, against a backdrop of new brand and store acquisitions and higher working capital requirements. Short-term borrowings increased by ¥1,300 million from the end of the previous fiscal year. - FY2020-Q3WorsenedAnnual report
「Current liabilities increased by ¥1,962 million from the end of the previous fiscal year to ¥9,455 million. This was mainly due to a ¥1,200 million increase in short-term borrowings, a ¥507 million increase in accounts payable associated with higher merchandise purchases, and a ¥226 million increase in other current liabilities resulting from higher advances received as vehicle orders increased, among other factors.」
Short-term borrowings increased by ¥1,200 million from the end of the previous fiscal year, further increasing exposure to interest-bearing debt dependence from the previous quarter. There is no disclosure indicating that difficulty in raising funds had actually occurred. - FY2020-Q1WorsenedAnnual report
「Current liabilities increased by ¥589 million from the end of the previous fiscal year to ¥8,081 million. This was mainly due to a ¥344 million increase in accounts payable resulting from higher merchandise purchases and a ¥500 million increase in short-term borrowings, partly offset by a ¥298 million decrease in advances received, included in other current liabilities, as vehicles ordered by customers were delivered, among other factors.」
Short-term borrowings increased by ¥500 million from the end of the previous fiscal year, increasing exposure to interest-bearing debt dependence. There is no disclosure indicating that difficulty in raising funds had actually occurred. - FY2019First statedAnnual report
「In particular, over the past 2 consolidated fiscal years, financing through bank borrowings has increased and reliance on interest-bearing debt has risen as the Company actively acquired new brands and stores through business transfers and other transactions, while working capital requirements grew with the increase in brands handled and stores. The Company seeks to obtain bank borrowings at the lowest possible interest rates and improve profitability so that it can recover its investment in stores and other strategic investments as early as possible. However, funding could become difficult due to higher interest expense resulting from rising interest rates or a decline in the Group's creditworthiness, which could affect the Group's operating performance and financial condition.」
The Company stated that reliance on interest-bearing debt had increased due to active business transfers, store expansion and rising working capital needs, and for the first time explicitly identified difficulty in raising funds caused by higher interest rates or a decline in creditworthiness as a standalone risk.