Priority Issues: Higher Interest-Bearing Debt Following M&A and Improving the Equity Ratio
First written in FY2025. 3 of 6 entries say "Worsened", first in 2026-03-17. Latest entry: FY2027-H1.
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- FY2027-H1MitigatedAnnual report
「Equity ratio (%) 44.6 38.5 37.7」
The equity ratio rose from 37.7% at the end of the previous fiscal year to 38.5% at the end of the current interim period. Short-term borrowings were unchanged from the end of the previous fiscal year at ¥7,600,000 thousand, and the improvement in the equity ratio is reflected in the figures. - FY2026WorsenedAnnual report
「Equity ratio (%) 43.7 37.7 The main factors were a net increase of ¥600,000 thousand in short-term borrowings and dividend payments of ¥565,763 thousand.」
The equity ratio declined from 43.7% at the end of the previous fiscal year to 37.7%, while short-term borrowings increased from ¥7,000,000 thousand to ¥7,600,000 thousand. The figures quantify the pressure on the financial base from the use of debt following M&A and deteriorating earnings. - FY2026-H1Higher equity ratio and increase in short-term borrowingsAnnual report
「Current liabilities decreased by ¥1,784,215 thousand, or 11.6%, from the end of the previous consolidated fiscal year to ¥13,606,783 thousand. This was mainly due to decreases of ¥1,396,762 thousand in accounts payable, ¥153,428 thousand in income taxes payable and ¥720,774 thousand in other liabilities, including advances received, despite a ¥600,000 thousand increase in short-term borrowings.」
Short-term borrowings increased from ¥7,000,000 thousand to ¥7,600,000 thousand, while the equity ratio rose from 43.7% at the end of the previous fiscal year to 44.6%. The use of debt following M&A and improvement in the equity ratio are occurring concurrently. - FY2025First statedAnnual report
「During the current consolidated fiscal year, the group reduced net cash through the use of interest-bearing debt to carry out M&A, and recognizes improving the equity ratio through stronger business performance as its highest priority.」
Net cash declined as interest-bearing debt was used for M&A, and the consolidated equity ratio stood at 43.7%. Against this backdrop, the company identified improving the equity ratio as its highest priority.