Funding Cost Risk from Interest-Bearing Debt and Interest Rate Fluctuations
First written in FY2016. 7 of 14 entries say "Worsened", first in FY2022. Latest entry: 2026-06-03.
Toho Chemical Industry moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2025: 13 of 60 companies on the "Worse" side.
7 other companies' latest entry also says "Worsened".
- FY2025MitigatedAnnual report
「As of 31 March 2025, the Group had ¥28,582 million in interest-bearing debt, including borrowings, bonds and lease obligations. The Group is working to reduce the risk of fluctuations in interest rates on borrowings through the use of interest-rate swaps and other measures.」
The balance of interest-bearing debt decreased from ¥29,944 million at the end of the previous fiscal year to ¥28,582 million. The policy of reducing risk through interest-rate swaps remains in place. - FY2025-H1MitigatedAnnual report
「Total liabilities decreased by ¥1,883 million from the end of the previous fiscal year to ¥48,892 million. The main factors behind the changes included a ¥1,012 million decrease in notes and accounts payable, a ¥300 million decrease in bonds due within one year, and a ¥180 million increase in long-term borrowings,」
Total liabilities decreased by ¥1,883 million from the end of the previous fiscal year. Long-term borrowings increased by ¥180 million, while bonds due within one year were eliminated and short-term borrowings also decreased by ¥50 million. - FY2024-Q3WorsenedAnnual report
「Total liabilities increased by ¥414 million from the end of the previous fiscal year to ¥50,600 million. The main factors behind the changes included a ¥525 million increase in short-term borrowings and a ¥511 million increase in long-term borrowings,」
Short-term borrowings increased by ¥525 million and long-term borrowings by ¥511 million from the end of the previous fiscal year, expanding exposure to interest-bearing debt and funding costs when interest rates rise. - FY2024-Q1WorsenedAnnual report
「The main factors behind the changes were a ¥1,202 million decrease in notes and accounts payable, a ¥787 million increase in short-term borrowings, a ¥300 million decrease in bonds due within one year, a ¥223 million decrease in accrued income taxes, a ¥348 million decrease in the provision for bonuses, a ¥633 million increase in other current liabilities, mainly due to increases in notes payable for equipment purchases, deposits received and consumption taxes payable, and a ¥304 million increase in long-term borrowings.」
Short-term borrowings increased by ¥787 million and long-term borrowings by ¥304 million from the end of the previous fiscal year, expanding exposure to interest-bearing debt and potentially increasing interest payments when interest rates rise. - FY2023WorsenedAnnual report
「As of the end of March 2023, the Group had interest-bearing debt of ¥29,944 million, including borrowings, bonds and lease obligations. The Group seeks to reduce interest rate risk on borrowings through the use of interest rate swaps and other measures, but if market interest rates rise, interest expense will increase, which may affect the Group's operating results and other matters.」
Interest-bearing debt increased from ¥28,182 million at the end of March 2022 to ¥29,944 million. Although measures to reduce risk through interest rate swaps continue, exposure to higher interest expense when interest rates rise has increased. - FY2023-Q3WorsenedAnnual report
「Short-term borrowings increased by ¥1,360 million, … long-term borrowings increased by ¥964 million.」
Both short-term and long-term borrowings increased from the end of the previous consolidated fiscal year, expanding exposure to interest-bearing debt and funding costs when interest rates rise. - FY2023-Q2WorsenedAnnual report
「Meanwhile, total liabilities increased by ¥604 million from the end of the previous fiscal year to ¥50,186 million. The main factors behind the changes were increases of ¥1,348 million in notes and accounts payable, ¥707 million in short-term borrowings, ¥741 million in long-term borrowings and ¥138 million in liabilities related to retirement benefits, and decreases of ¥2,150 million in other current liabilities, mainly because of a decrease in notes payable for equipment, and ¥151 million in other non-current liabilities, mainly because of a decrease in lease obligations.」
Short-term borrowings increased by ¥707 million and long-term borrowings by ¥741 million from the end of the previous fiscal year, while total liabilities increased by ¥604 million. The Group's exposure to interest-bearing debt and interest rate changes has increased. - FY2022WorsenedAnnual report
「At the end of the fiscal year, interest-bearing debt, including borrowings, bonds and lease obligations, stood at ¥28,182 million.」
Interest-bearing debt increased from ¥21,243 million to ¥28,182 million, and the risks of higher interest expense when interest rates rise and cash-flow constraints caused by an inability to obtain financing from financial institutions were explicitly identified. - FY2020RestatedAnnual report
「As of the end of March 2020, the Group had interest-bearing debt of ¥21,243 million. The Group seeks to reduce interest rate risk on borrowings through the use of interest rate swaps and other measures, but if market interest rates rise, interest expense will increase, which may affect the Group's operating results and other matters.」
The balance of interest-bearing debt of ¥21,243 million and the risk of higher interest rates were specifically identified, while the policy of reducing funding costs through interest rate swaps continues. - FY2019RestatedAnnual report
「The Group enters into interest rate swap transactions to fix the funding cost of financing raised at variable interest rates.」
The Group continues to recognize the risks associated with interest-bearing debt and higher market interest rates, and maintains its policy of fixing funding costs through interest rate swaps. - FY2017RestatedAnnual report
「Because the Group relies heavily on interest-bearing debt for financing, an increase in market interest rates may affect the Group's operating results and financial position.」
The Group continues to recognize funding cost risk from interest-bearing debt and higher market interest rates, and maintains its policy of fixing costs through interest rate swaps. - FY2016First statedAnnual report
「Because the Group relies heavily on interest-bearing debt for financing, an increase in market interest rates may affect the Group's operating results and financial position.」
The company also stated its policy of using interest rate swaps to fix the cost of variable-rate financing.