High Reliance on Borrowings and Interest-Rate Risk
First written in FY2016. 19 of 38 entries say "Mitigated", first in FY2017-Q2. Latest entry: 2026-08-05.
Shinto Paint moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2020: 64 of 143 companies on the "Worse" side.
83 other companies' latest entry also says "Mitigated".
- 2026-08-05MitigatedEarnings
「依然として借入金残高が4,599百万円と高水準となっております。」
借入金残高は高水準との認識が継続しているが、前連結会計年度末の短期借入金5,068百万円から4,570百万円へ減少した。 - FY2026WorsenedAnnual report
「In December 2025, the Company entered into a ¥6 billion, 3-year syndicated commitment line arranged by MUFG Bank, Ltd., with no financial covenants, and raised ¥5 billion. As a result, the ratio of outstanding borrowings to total assets remains high.」
The Company established a ¥6 billion commitment line with no financial covenants and raised ¥5 billion. Outstanding borrowings were high at ¥510 million, not approximately ¥5.1 billion, and the risk of higher interest expense when interest rates rise also remains. - FY2026-H1WorsenedAnnual report
「Although the Company continued to be affected by soaring raw material prices and other factors during the interim consolidated accounting period, it recorded operating income of ¥122 million, ordinary income of ¥242 million and interim net income attributable to owners of the parent of ¥50 million. Outstanding borrowings nevertheless remained high at ¥5,126 million.」
Outstanding borrowings were high at ¥5,126 million, up from ¥5,026 million at the end of the previous consolidated fiscal year. Reliance on borrowings and interest-rate exposure remain despite the recording of operating income and ordinary income. - FY2025WorsenedAnnual report
「On 31 March 2025, the Company raised a substantial amount of funds through a bridge loan from MUFG Bank, Ltd. As a result, the ratio of outstanding borrowings to total assets remains high. Interest rates are currently trending upward, and if they rise further, interest expense may increase, potentially affecting the financial position, operating results and cash flows of the Group.」
Outstanding borrowings were high at ¥5,026 million, and the substantial financing through a bridge loan dated 31 March and the upward trend in interest rates were newly stated. - FY2025-H1RestatedAnnual report
「Outstanding borrowings remained high at ¥5,628 million.」
Although the Company recorded a profit for the interim consolidated accounting period, it continued to recognize that outstanding borrowings remained high at ¥5,628 million. - FY2024MitigatedAnnual report
「Net cash used in financing activities was ¥761 million, compared with net cash provided of ¥2,390 million in the previous fiscal year. The main factors were net decreases of ¥532 million in long-term borrowings and ¥200 million in short-term borrowings.」
Long- and short-term borrowings decreased on a net basis for the fiscal year, reducing reliance on borrowings and interest-rate exposure from the previous fiscal year. Outstanding borrowings under the syndicated loan were ¥4,363 million, and the ratio of outstanding borrowings was stated to remain high. - FY2024-Q3WorsenedAnnual report
「Liabilities amounted to ¥20,395 million, up ¥923 million from the end of the previous consolidated fiscal year, mainly due to increases of ¥413 million in notes and accounts payable, ¥366 million in electronically recorded obligations and ¥132 million in short-term borrowings.」
Short-term borrowings increased by ¥132 million and total liabilities also increased by ¥923 million, expanding reliance on borrowings and interest-rate exposure from the end of the previous consolidated fiscal year. - FY2024-Q2WorsenedAnnual report
「Liabilities amounted to ¥21,013 million, up ¥1,541 million from the end of the previous consolidated fiscal year, mainly due to increases of ¥436 million in notes and accounts payable, ¥279 million in electronically recorded obligations, ¥498 million in short-term borrowings and ¥339 million in long-term borrowings.」
The ¥498 million increase in short-term borrowings and ¥339 million increase in long-term borrowings resulted in a ¥1,541 million increase in total liabilities, expanding reliance on borrowings and interest-rate exposure. Separately, measures to address liquidity are progressing through financing and changes to the financial covenants. - FY2024-Q1MitigatedAnnual report
「Liabilities amounted to ¥19,284 million, down ¥186 million from the end of the previous consolidated fiscal year, mainly due to decreases of ¥123 million in provision for bonuses and ¥187 million in long-term borrowings, partly offset by a ¥100 million increase in short-term borrowings.」
While short-term borrowings increased, long-term borrowings decreased by ¥187 million and total liabilities decreased by ¥186 million from the end of the previous consolidated fiscal year. Reliance on borrowings and interest-rate exposure declined slightly, but the recognition that these remain high and the breach of financial covenants continue. - FY2023WorsenedAnnual report
「In addition, on 23 December 2022, the Company raised a substantial amount of funds through a syndicated loan arranged by Sumitomo Mitsui Banking Corporation. As a result, the ratio of outstanding borrowings to total assets remains high.」
The Company explicitly stated that it had raised a substantial amount through a syndicated loan and that the ratio of outstanding borrowings remains high. - FY2023-Q3WorsenedAnnual report
「Liabilities amounted to ¥21,446 million, up ¥4,974 million from the end of the previous consolidated fiscal year, mainly due to increases of ¥709 million in electronically recorded obligations, ¥754 million in short-term borrowings, ¥2,847 million in long-term borrowings and ¥356 million in provisions for costs related to inappropriate quality-related conduct.」
Short-term borrowings increased by ¥754 million and long-term borrowings by ¥2,847 million, while total liabilities also increased by ¥4,974 million, expanding reliance on borrowings and interest-rate exposure. - FY2023-Q2WorsenedAnnual report
「Liabilities amounted to ¥17,067 million, up ¥595 million from the end of the previous consolidated fiscal year, mainly due to increases of ¥289 million in electronically recorded obligations, ¥705 million in short-term borrowings and ¥236 million in provisions for costs related to inappropriate quality-related conduct, partly offset by a ¥453 million decrease in long-term borrowings.」
While long-term borrowings decreased, short-term borrowings increased by ¥705 million and total liabilities also increased by ¥595 million, expanding reliance on borrowings and interest-rate exposure. - FY2023-Q1WorsenedAnnual report
「Liabilities amounted to ¥17,158 million, up ¥687 million from the end of the previous consolidated fiscal year, mainly due to increases of ¥190 million in electronically recorded obligations and ¥600 million in short-term borrowings, partly offset by a ¥121 million decrease in provision for bonuses.」
Short-term borrowings increased by ¥600 million and total liabilities also increased by ¥687 million, expanding reliance on borrowings and interest-rate exposure. - FY2022WorsenedAnnual report
「Liabilities at the end of the current consolidated fiscal year amounted to ¥16,471 million, up ¥842 million from the end of the previous consolidated fiscal year, mainly due to increases of ¥343 million in notes and accounts payable, ¥197 million in short-term borrowings and ¥183 million in long-term borrowings, partly offset by a ¥154 million decrease in electronically recorded obligations.」
Short-term borrowings increased by ¥197 million and long-term borrowings by ¥183 million, while total liabilities also increased by ¥842 million, expanding reliance on borrowings and interest-rate exposure. - FY2022-Q3WorsenedAnnual report
「Liabilities amounted to ¥17,231 million, up ¥1,602 million from the end of the previous consolidated fiscal year, mainly due to increases of ¥954 million in notes and accounts payable, ¥474 million in electronically recorded obligations and ¥334 million in long-term borrowings.」
Long-term borrowings increased by ¥334 million and total liabilities also increased by ¥1,602 million. Reliance on borrowings and interest-rate exposure expanded from the end of the previous fiscal year. - FY2022-Q2WorsenedAnnual report
「Liabilities amounted to ¥15,993 million, up ¥365 million from the end of the previous consolidated fiscal year, mainly due to a ¥270 million increase in notes and accounts payable, a ¥334 million increase in long-term borrowings and a ¥138 million decrease in electronically recorded obligations.」
Long-term borrowings increased by ¥334 million and total liabilities also increased by ¥365 million, expanding reliance on borrowings and interest-rate exposure from the end of the previous fiscal year. - FY2022-Q1MitigatedAnnual report
「Liabilities amounted to ¥15,664 million, up ¥35 million from the end of the previous consolidated fiscal year, mainly due to a ¥247 million increase in notes and accounts payable and a ¥20 million decrease in short-term borrowings.」
Short-term borrowings decreased by ¥20 million, resulting in a slight reduction in reliance on borrowings and interest-rate exposure. Total liabilities, however, increased by ¥35 million. - FY2021-Q3MitigatedAnnual report
「Liabilities amounted to ¥16,743 million, down ¥1,128 million from the end of the previous consolidated fiscal year, mainly due to increases of ¥362 million in electronically recorded obligations and decreases of ¥1,052 million in short-term borrowings, ¥333 million in long-term borrowings and ¥94 million in income taxes payable.」
The decreases of ¥1,052 million in short-term borrowings and ¥333 million in long-term borrowings reduced reliance on borrowings and interest-rate exposure from the end of the previous fiscal year. - FY2021-Q2MitigatedAnnual report
「Liabilities amounted to ¥17,025 million, down ¥846 million from the end of the previous consolidated fiscal year, mainly due to a ¥358 million decrease in notes and accounts payable and a ¥333 million decrease in long-term borrowings.」
The ¥333 million decrease in long-term borrowings and the ¥846 million decrease in total liabilities reduced reliance on borrowings and interest-rate exposure. - FY2021-Q1MitigatedAnnual report
「Liabilities amounted to ¥17,048 million, down ¥823 million from the end of the previous consolidated fiscal year, mainly due to decreases of ¥330 million in notes and accounts payable and ¥333 million in short-term borrowings.」
Short-term borrowings decreased by ¥333 million and total liabilities also decreased by ¥823 million, reducing reliance on borrowings and interest-rate exposure from the end of the fiscal year. - FY2020WorsenedAnnual report
「Liabilities at the end of the consolidated fiscal year totaled ¥17,872 million, down ¥1,388 million from the end of the previous consolidated fiscal year, mainly because notes and accounts payable decreased by ¥1,982 million, despite a ¥459 million increase in interest-bearing liabilities.」
While total liabilities decreased, interest-bearing debt increased by ¥459 million, and reliance on borrowings and interest-rate exposure expanded from the end of the previous fiscal year. - FY2020-Q3WorsenedAnnual report
「Liabilities totaled ¥18,767 million, down ¥493 million from the end of the previous consolidated fiscal year, mainly because notes and accounts payable decreased by ¥354 million, the bonus provision by ¥147 million and income taxes payable by ¥60 million, despite a ¥180 million increase in short-term borrowings.」
Although total liabilities decreased, short-term borrowings increased by ¥180 million and long-term borrowings increased from ¥1,777 million to ¥1,824 million, slightly increasing borrowing dependence and interest rate exposure. - FY2020-Q2WorsenedAnnual report
「Short-term borrowings 2,937 2,934 Long-term borrowings 1,777 1,840」
Short-term borrowings decreased by ¥3 million from the end of the previous consolidated fiscal year, while long-term borrowings increased by ¥63 million, increasing total borrowings by approximately ¥60 million. Borrowing dependence and interest rate exposure increased slightly. - FY2020-Q1MitigatedAnnual report
「Liabilities totaled ¥18,981 million, down ¥280 million from the end of the previous consolidated fiscal year, mainly because short-term borrowings decreased by ¥83 million and the bonus provision decreased by ¥149 million.」
Short-term borrowings decreased by ¥83 million and long-term borrowings by ¥33 million, slightly reducing borrowing dependence and interest rate exposure. - FY2019MitigatedAnnual report
「Short-term borrowings 3,109 2,937 Long-term borrowings 1,619 1,777」
Short-term borrowings decreased by ¥172 million, while long-term borrowings increased by ¥158 million. Total borrowings decreased slightly from the end of the previous fiscal year, but the increase in long-term borrowings and interest rate risk remain. - FY2019-Q3MitigatedAnnual report
「Short-term borrowings 3,109 2,950 Long-term borrowings 1,619 1,561」
Short-term borrowings at the end of the third quarter decreased by ¥159 million from the end of the previous consolidated fiscal year, while long-term borrowings decreased by ¥58 million, reducing borrowing dependence and interest rate exposure. - FY2019-Q2MitigatedAnnual report
「Short-term borrowings 3,109 3,066 Long-term borrowings 1,619 1,594」
Short-term borrowings decreased by ¥43 million and long-term borrowings by ¥25 million from the end of the previous consolidated fiscal year, slightly reducing borrowing dependence and interest rate exposure. - FY2019-Q1MitigatedAnnual report
「Short-term borrowings 3,109 3,094 Long-term borrowings 1,619 1,584」
Short-term borrowings decreased by ¥15 million and long-term borrowings by ¥35 million from the end of the previous consolidated fiscal year, slightly reducing borrowing dependence and interest rate exposure. However, there is no statement that the risks have been eliminated. - FY2018MitigatedAnnual report
「Total liabilities at the end of the consolidated fiscal year totaled ¥19,170 million, up ¥759 million from the end of the previous consolidated fiscal year, mainly because notes and accounts payable increased by ¥1,420 million, while short-term borrowings decreased by ¥405 million and long-term borrowings by ¥261 million.」
Short-term borrowings decreased by ¥405 million and long-term borrowings by ¥261 million, reducing borrowing dependence and interest rate exposure. Meanwhile, total liabilities increased because of higher accounts payable. - FY2018-Q3MitigatedAnnual report
「Liabilities at the end of the third quarter consolidated accounting period totaled ¥19,224 million, up ¥814 million from the end of the previous consolidated fiscal year, mainly because notes and accounts payable increased by ¥1,412 million, while long-term borrowings decreased by ¥266 million, short-term borrowings by ¥180 million and income taxes payable by ¥142 million.」
Long-term and short-term borrowings decreased from the end of the previous fiscal year, reducing borrowing dependence and interest rate exposure. Meanwhile, total liabilities increased because of higher accounts payable. - FY2018-Q2MitigatedAnnual report
「Liabilities at the end of the second quarter consolidated accounting period totaled ¥19,028 million, up ¥617 million from the end of the previous consolidated fiscal year, mainly because notes and accounts payable increased by ¥1,221 million, while short-term borrowings decreased by ¥363 million and long-term borrowings by ¥233 million.」
Short-term borrowings decreased by ¥363 million and long-term borrowings by ¥233 million from the end of the previous fiscal year, reducing borrowing dependence and interest rate exposure. However, there is no statement that the risks have been eliminated. - FY2018-Q1MitigatedAnnual report
「Liabilities at the end of the first quarter consolidated accounting period totaled ¥18,224 million, down ¥185 million from the end of the previous consolidated fiscal year, mainly because short-term borrowings decreased by ¥341 million and income taxes payable decreased by ¥167 million, while notes and accounts payable increased by ¥244 million.」
Short-term borrowings decreased by ¥341 million and long-term borrowings by ¥17 million, reducing borrowing dependence and interest rate exposure. - FY2017MitigatedAnnual report
「The main changes in current liabilities were a ¥589 million decrease in notes and accounts payable, a ¥286 million decrease in short-term borrowings and a ¥199 million increase in equipment-related notes payable. The main decrease in non-current liabilities was a ¥416 million decrease in long-term borrowings.」
Short-term borrowings decreased by ¥286 million and long-term borrowings by ¥416 million from the end of the previous fiscal year, continuing the reduction in borrowing dependence and interest rate exposure. However, borrowings are still described as being at a high level. - FY2017-Q3MitigatedAnnual report
「Liabilities at the end of the third quarter consolidated accounting period totaled ¥19,670 million, up ¥173 million from the end of the previous consolidated fiscal year, mainly because notes and accounts payable increased by ¥387 million, equipment-related notes payable by ¥138 million and other accounts payable by ¥89 million, while short-term borrowings decreased by ¥281 million and long-term borrowings by ¥162 million.」
Short-term borrowings decreased by ¥281 million and long-term borrowings by ¥162 million from the end of the previous fiscal year, continuing the reduction in borrowing dependence and interest rate exposure. There is no statement that the high level or interest rate impact has been eliminated. - FY2017-Q2MitigatedAnnual report
「Liabilities at the end of the second quarter consolidated accounting period totaled ¥18,913 million, down ¥583 million from the end of the previous consolidated fiscal year, mainly because short-term borrowings decreased by ¥331 million and notes and accounts payable decreased by ¥325 million, despite a ¥55 million increase in liabilities related to retirement benefits.」
Short-term borrowings decreased by ¥331 million, and long-term borrowings also decreased from ¥2,297 million to ¥2,168 million. Exposure to borrowing dependence and interest rate fluctuations narrowed from the end of the previous fiscal year, but there is no statement that the high level or interest rate impact has been eliminated. - FY2016First statedAnnual report
「Although we are working to reduce borrowings by improving asset efficiency and taking other measures, borrowings still account for a high proportion of total assets. Although low interest rates have continued in recent years, future interest rate trends could affect the financial condition, operating results and cash flows of our group.」
While working to reduce borrowings, the company discloses its high borrowing ratio and future interest rate increases as risks.