Higher Market Interest Rates and Borrowing Costs
First written in FY2016. 19 of 28 entries say "Worsened", first in FY2019. Latest entry: FY2027-H1.
Mk Seiko moved to the "Worse" side of this theme in 2019, 4 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 31 of 99 companies on the "Worse" side.
43 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「At the end of the interim consolidated accounting period, total liabilities increased by ¥1,355 million from the end of the previous consolidated fiscal year to ¥10,287 million. This was mainly due to a ¥1,580 million increase in short-term borrowings and a ¥311 million decrease in long-term borrowings. / Interest expense increased from ¥16.164 million to ¥20.801 million.」
Short-term borrowings increased by ¥1,580 million, and interest expense also increased from ¥16.164 million in the same period of the previous year to ¥20.801 million. - FY2026MitigatedAnnual report
「This was mainly due to a ¥790 million decrease in short-term borrowings and a ¥321 million increase in deferred tax liabilities.」
Total liabilities declined from ¥9,594.71 million to ¥8,931.86 million due mainly to the decrease in short-term borrowings. The equity ratio was 68.5%, and the interest coverage ratio was 62.2x. - FY2026-H1WorsenedAnnual report
「This was mainly due to increases of ¥576 million in notes payable and accounts payable and ¥1,080 million in short-term borrowings, together with a decrease of ¥317 million in long-term borrowings.」
While long-term borrowings declined, short-term borrowings increased by ¥1,080 million, expanding borrowing exposure and the short-term financing burden. Interest expense also increased from ¥13.077 million in the same period of the previous year to ¥16.164 million. - FY2025-Q1WorsenedAnnual report
「This was mainly due to an increase of ¥390 million in short-term borrowings.」
Short-term borrowings increased by ¥390 million from the end of the previous consolidated fiscal year as trade receivables and inventories increased due to seasonal factors. Borrowing exposure to higher market interest rates expanded again. - FY2024MitigatedAnnual report
「This was mainly due to decreases of ¥440 million in short-term borrowings and ¥623 million in long-term borrowings.」
The borrowing burden declined due to decreases in short- and long-term borrowings, and interest expense also declined from ¥39.995 million in the previous fiscal year to ¥33.312 million. The risk of higher interest rates itself continued to be disclosed. - FY2024-Q3WorsenedAnnual report
「This was mainly due to an increase of ¥610 million in short-term borrowings and a decrease of ¥380 million in long-term borrowings.」
Although long-term borrowings declined, short-term borrowings increased by ¥610 million, expanding borrowing exposure and the short-term financing burden. - FY2024-Q2WorsenedAnnual report
「This was mainly due to increases of ¥1,250 million in short-term borrowings and ¥172 million in other accounts payable, together with a decrease of ¥135 million in long-term borrowings.」
Although long-term borrowings declined, short-term borrowings increased by ¥1,250 million, expanding borrowing exposure and the short-term financing burden. - FY2024-Q1WorsenedAnnual report
「This was mainly due to an increase of ¥1,650 million in short-term borrowings and a decrease of ¥224 million in long-term borrowings.」
The increase in short-term borrowings exceeded the decrease in long-term borrowings, causing total borrowings to increase from the end of the previous consolidated fiscal year. Borrowing exposure to higher market interest rates expanded. - FY2023-Q3MitigatedAnnual report
「This was mainly due to an increase of ¥779 million in other accounts payable and a decrease of ¥133 million in long-term borrowings.」
At the end of the third quarter, long-term borrowings declined by ¥133 million and short-term borrowings also declined by ¥500 million from the end of the previous fiscal year, resulting in a decrease in total borrowings. - FY2023-Q2WorsenedAnnual report
「This was mainly due to a ¥570 million increase in short-term borrowings and a ¥492 million increase in other accounts payable.」
Short-term borrowings increased by ¥570 million, while financing activities included ¥730 million in proceeds from long-term borrowings and ¥475.497 million in repayments. Borrowing exposure continued to expand. - FY2023-Q1WorsenedAnnual report
「This was mainly due to a ¥560 million increase in short-term borrowings and a ¥485 million increase in other accounts payable.」
Short-term borrowings increased by ¥560 million at the end of the first quarter, expanding borrowing exposure. The occurrence of the higher-interest-rate risk itself was not disclosed. - FY2022WorsenedAnnual report
「The Group raises funds through borrowings from financial institutions, and rising market interest rates could affect its results.」
The risk of higher interest rates continued to be disclosed. Interest-bearing debt increased from ¥6,444.33 million at the end of the previous fiscal year to ¥6,478.32 million, and long-term borrowings also increased. - FY2022-Q3WorsenedAnnual report
「This was mainly due to increases of ¥479 million in notes payable and accounts payable, ¥420 million in short-term borrowings and ¥236 million in long-term borrowings.」
Both short-term and long-term borrowings increased from the end of the previous consolidated fiscal year, expanding borrowing exposure to higher market interest rates. - FY2022-Q2WorsenedAnnual report
「This was mainly due to increases of ¥552 million in notes and accounts payable and ¥454 million in long-term borrowings.」
While short-term borrowings declined, long-term borrowings increased by ¥454 million, changing the borrowing composition and exposure to higher market interest rates. - FY2022-Q1WorsenedAnnual report
「This was mainly due to a ¥515 million increase in accounts payable, a ¥340 million decrease in short-term borrowings, a ¥447 million decrease in income taxes payable and other liabilities, and a ¥432 million increase in long-term borrowings.」
While short-term borrowings declined, long-term borrowings increased by ¥432 million, and total borrowings increased from the end of the previous fiscal year. Exposure to higher market interest rates through borrowings increased. - FY2021MitigatedAnnual report
「Funds declined due to ¥1,661 million spent on repayments of long-term borrowings, while funds increased due to a net increase of ¥65 million in short-term borrowings and ¥900 million in proceeds from long-term borrowings.」
The balance of borrowings and other debt declined from the previous fiscal year due to repayments of long-term borrowings, and interest expense also declined from ¥59.35 million to ¥49.30 million. Although short-term borrowings increased, the overall borrowing burden declined. - FY2021-Q3WorsenedAnnual report
「This was mainly due to increases of ¥485 million in notes and accounts payable and ¥1,505 million in short-term borrowings, together with a ¥844 million decrease in the current portion of long-term borrowings.」
The borrowing composition changed, with short-term borrowings increasing by ¥1,505 million and the current portion of long-term borrowings declining. - FY2021-Q2WorsenedAnnual report
「This was mainly due to increases of ¥442 million in notes and accounts payable and ¥1,785 million in short-term borrowings, together with a ¥845 million decrease in the current portion of long-term borrowings and a ¥274 million increase in long-term borrowings.」
While some long-term borrowings were repaid, short-term borrowings increased by ¥1,785 million, changing the borrowing burden and borrowing composition. - FY2021-Q1WorsenedAnnual report
「This was mainly due to an increase of ¥1,825 million in short-term borrowings and a decrease of ¥901 million in current maturities of long-term borrowings.」
The borrowing burden and borrowing composition changed due to an increase in short-term borrowings. - FY2020MitigatedAnnual report
「Cash used in financing activities was ¥748 million (compared with ¥2,287 million provided in the same period of the previous year). The main factors were cash outflows of ¥153 million for lease obligation repayments and ¥629 million for repayments of long-term borrowings, partly offset by a ¥150 million net increase in short-term borrowings.」
Interest-bearing debt declined from the previous fiscal year due to repayments of long-term borrowings, and interest expense also declined from ¥66.528 million to ¥59.35 million. - FY2020-Q3WorsenedAnnual report
「This was mainly due to increases of ¥614 million in notes and accounts payable, ¥1,050 million in short-term borrowings and ¥920 million in the current portion of long-term borrowings, together with a ¥1,401 million decrease in long-term borrowings.」
While long-term borrowings declined, short-term borrowings and the current portion of long-term borrowings increased, changing the short-term borrowing burden and borrowing composition from the end of the previous consolidated fiscal year. - FY2020-Q2WorsenedAnnual report
「This was mainly due to increases of ¥518 million in notes payable and accounts payable, ¥1,170 million in short-term borrowings and ¥944 million in current maturities of long-term borrowings, together with a decrease of ¥1,275 million in long-term borrowings.」
While long-term borrowings declined, short-term borrowings and the current portion of long-term borrowings increased, changing the borrowing composition and short-term borrowing burden. - FY2019WorsenedAnnual report
「The Group raises funds through borrowings from financial institutions, and rising market interest rates could affect its results.」
The risk of higher interest rates continued to be disclosed. Long-term borrowings, including the portion due within one year, increased from ¥2,150.031 million in the previous fiscal year to ¥4,064.346 million due to an increase in borrowings associated with M&A and other activities. - FY2018RestatedAnnual report
「The Group finances its operations through borrowings from financial institutions, and rising market interest rates could affect its performance. It intends to further improve the efficient use of assets and profitability while accelerating the reduction of interest-bearing debt, including borrowings.」
The company reaffirmed the risk of higher interest rates associated with borrowings and its policy of responding by reducing interest-bearing debt. - FY2017RestatedAnnual report
「The Group finances its operations through borrowings from financial institutions, and rising market interest rates could affect its performance. It intends to further improve the efficient use of assets and profitability while accelerating the reduction of interest-bearing debt, including borrowings.」
The disclosure continued to cite the risk of higher interest rates associated with financing through borrowings and the policy of responding by reducing interest-bearing debt. - FY2016First statedAnnual report
「The Group raises funds through borrowings from financial institutions, and rising market interest rates could affect its results.」
The risk of higher interest rates associated with financing through borrowings.