Risks Related to Interest-Bearing Debt, Interest Rate Fluctuations and Financial Covenants
First written in FY2018. 10 of 25 entries say "Worsened", first in FY2019. Latest entry: 2026-11-06.
Towa moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
16 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Interest-bearing debt represented approximately 17.1% of total assets at the end of the consolidated fiscal year. … We had entered into overdraft and commitment line agreements totaling ¥18,500 million with 6 transaction banks, comprising a drawn balance of ¥11,500 million and an undrawn balance of ¥7,000 million.」
The ratio of interest-bearing debt was approximately 17.1%, and the drawn balance also increased to ¥11,500 million. Financing agreements subject to financial covenants remain in place. - 2026-05-11WorsenedResults
「負債合計は、356億55百万円となり、前連結会計年度末に比べ138億13百万円増加しました。これは主に、受注増加及び生産活動の拡大に伴う支払手形及び買掛金が28億80百万円増加、運転資金需要に対応するため短期借入金が45億円増加したことに加え、設備投資資金として長期借入金が36億30百万円増加したことによります。」
受注・生産活動の拡大に伴う短期借入金および設備投資向け長期借入金の増加により、負債エクスポージャーが拡大した。 - FY2026-H1WorsenedAnnual report
「Total liabilities increased by ¥533.8 million from the end of the previous consolidated fiscal year, to ¥2,718 million, due to an increase in borrowings and other factors.」
Total liabilities increased by ¥533.8 million due to an increase in borrowings and other factors. A net increase of ¥5,000 million in short-term borrowings and a drawn balance of ¥12,000 million were also disclosed, expanding the financial exposure. - FY2025MitigatedAnnual report
「Interest-bearing debt represented approximately 12.1% of total assets at the end of the consolidated fiscal year. … The drawn balance was ¥7,000 million and the undrawn balance ¥11,500 million.」
The ratio of interest-bearing debt was approximately 12.1%, and the drawn balance also declined to ¥7,000 million. Agreements subject to financial covenants remain in place. - FY2025-H1MitigatedAnnual report
「Total liabilities decreased by ¥349.5 million from the end of the previous consolidated fiscal year, to ¥2,593 million, due to repayment of borrowings and payments of corporate taxes and other taxes.」
Total liabilities decreased by ¥349.5 million from the end of the previous consolidated fiscal year due to repayment of borrowings and other factors, while the balance of long-term borrowings was ¥319 million. - FY2024-Q3MitigatedAnnual report
「At the end of the third quarter of the consolidated fiscal year, we had entered into overdraft and commitment line agreements totaling ¥18,500 million with 6 transaction banks, comprising a drawn balance of ¥9,400 million and an undrawn balance of ¥9,100 million.」
The financing facilities remained at ¥18,500 million, but the drawn balance declined from ¥9,900 million at the end of the previous quarter to ¥9,400 million, and the balance of long-term borrowings also declined to ¥4,425 million. - FY2024-Q2WorsenedAnnual report
「At the end of the second quarter of the consolidated fiscal year, we had entered into overdraft and commitment line agreements totaling ¥18,500 million with 6 transaction banks, comprising a drawn balance of ¥9,900 million and an undrawn balance of ¥8,600 million.」
For financing subject to financial covenants and other conditions, the total contractual amount increased from ¥18,250 million to ¥18,500 million and the drawn balance from ¥9,400 million to ¥9,900 million, expanding the exposure. - FY2024-Q1WorsenedAnnual report
「In addition, at the end of the first quarter of the consolidated fiscal year, we had entered into overdraft and commitment line agreements totaling ¥18,250 million with 6 transaction banks, comprising a drawn balance of ¥9,400 million and an undrawn balance of ¥8,850 million.」
For financing subject to financial covenants and other conditions, the total contractual amount increased from ¥14,500 million to ¥18,250 million and the drawn balance from ¥8,200 million to ¥9,400 million, expanding the exposure. - FY2023-Q3Update to third-quarter borrowing facilities and balancesAnnual report
「As of 31 December 2022, the balance of long-term borrowings was ¥6,365 million. In addition, as of the end of the current third-quarter consolidated accounting period, the company had entered into overdraft facility agreements and commitment line agreements totaling ¥14,500 million with 6 relationship banks, comprising a drawn balance of ¥8,200 million and an undrawn balance of ¥6,300 million.」
For financing subject to financial covenants and other conditions, the total contractual amount was ¥14,500 million, the drawn balance ¥8,200 million, the undrawn balance ¥6,300 million, and the balance of long-term borrowings ¥6,365 million. - FY2023-Q2Update to second-quarter borrowing facilities and balancesAnnual report
「At the end of the second quarter of the consolidated fiscal year, we had entered into overdraft and commitment line agreements totaling ¥14,500 million with 6 transaction banks, comprising a drawn balance of ¥8,000 million and an undrawn balance of ¥6,500 million.」
For financing subject to financial covenants and other conditions, the total contractual amount was updated to ¥14,500 million, the drawn balance to ¥8,000 million, and the undrawn balance to ¥6,500 million. - FY2023-Q1WorsenedAnnual report
「We had entered into overdraft and commitment line agreements totaling ¥14,400 million with 6 transaction banks, comprising a drawn balance of ¥8,100 million and an undrawn balance of ¥6,300 million.」
For financing subject to financial covenants and other conditions, the financing facilities increased from ¥12,000 million to ¥14,400 million and the drawn balance from ¥5,300 million to ¥8,100 million. - FY2022Update to full-year borrowing facilities and financial covenantsAnnual report
「Interest-bearing debt represented approximately 14.6% of total assets at the end of the consolidated fiscal year. … We had entered into overdraft and commitment line agreements totaling ¥12,000 million with 6 transaction banks, comprising a drawn balance of ¥5,300 million and an undrawn balance of ¥6,700 million. These agreements contain financial covenants, and if we breach them, the group may be required to repay borrowings early, which could affect our group’s cash management and financial position.」
The ratio of interest-bearing debt declined to approximately 14.6%, while the drawn balance was ¥5,300 million and the financing facilities totaled ¥12,000 million, updating the status of financing subject to financial covenants. - FY2022-Q3Update to third-quarter borrowing facilities and balancesAnnual report
「As of 31 December 2021, the balance of long-term borrowings was ¥4,945 million. In addition, as of the end of the current third-quarter consolidated accounting period, the company had entered into overdraft facility agreements and commitment line agreements totaling ¥12,000 million with 6 relationship banks, comprising a drawn balance of ¥4,100 million and an undrawn balance of ¥7,900 million.」
For financing subject to financial covenants and other conditions, the total contractual amount was ¥12,000 million, the drawn balance ¥4,100 million, the undrawn balance ¥7,900 million, and the balance of long-term borrowings ¥4,945 million. - FY2022-Q2Update to second-quarter borrowing facilities and balancesAnnual report
「As of 30 September 2021, the balance of long-term borrowings was ¥5,280 million. In addition, as of the end of the current second-quarter consolidated accounting period, the company had entered into overdraft facility agreements and commitment line agreements totaling ¥12,000 million with 6 relationship banks, comprising a drawn balance of ¥2,600 million and an undrawn balance of ¥9,400 million.」
For financing subject to financial covenants and other conditions, the total contractual amount was updated to ¥12,000 million, the drawn balance to ¥2,600 million, the undrawn balance to ¥9,400 million, and the balance of long-term borrowings to ¥5,280 million. - FY2022-Q1Update to Q1 borrowings balanceAnnual report
「As of 30 June 2021, the balance of long-term borrowings was ¥5,615 million. In addition, as of the end of the current first-quarter consolidated accounting period, the company had entered into overdraft facility agreements and commitment line agreements totaling ¥9,700 million with 6 relationship banks, comprising a drawn balance of ¥2,300 million and an undrawn balance of ¥7,400 million.」
For financing subject to financial covenants and other conditions, the balance of long-term borrowings was updated to ¥5,615 million, the drawn balance to ¥2,300 million, and the undrawn balance to ¥7,400 million. - FY2021MitigatedAnnual report
「Interest-bearing debt represented approximately 15.1% of total assets at the end of the consolidated fiscal year. … We had entered into overdraft and commitment line agreements totaling ¥9,700 million with 6 transaction banks, comprising a drawn balance of ¥1,500 million and an undrawn balance of ¥8,200 million.」
The ratio of interest-bearing debt was approximately 15.1%, the drawn balance was ¥1,500 million and the undrawn balance was ¥8,200 million, with the drawn amount declining from the previous fiscal year. - FY2021-Q3Update to Q3 borrowings balanceAnnual report
「Total liabilities increased by ¥1,097 million from the end of the previous consolidated accounting year to ¥17,204 million. Although borrowings decreased due to improved fund efficiency resulting from strong business performance, trade payables and other payment obligations increased in line with the sharp increase in orders.」
Borrowings were reported to have declined as improved business conditions increased funding efficiency. The drawn balance was updated to ¥2,200 million and the balance of long-term borrowings to ¥6,175 million. - FY2021-Q2Update to Q2 borrowings balanceAnnual report
「As of 30 September 2020, the balance of long-term borrowings was ¥6,479 million. In addition, at the end of the second quarter of the consolidated fiscal year, we had entered into overdraft and commitment line agreements totaling ¥9,700 million with 6 transaction banks, comprising a drawn balance of ¥3,500 million and an undrawn balance of ¥6,200 million.」
The ¥9,700 million financing facility was maintained, with the drawn balance updated to ¥3,500 million, the undrawn balance to ¥6,200 million, and the balance of long-term borrowings to ¥6,479 million. - FY2021-Q1Update to Q1 borrowings balanceAnnual report
「As of 30 June 2020, the balance of long-term borrowings was ¥5,283 million. In addition, as of the end of the current first-quarter consolidated accounting period, the company had entered into overdraft facility agreements and commitment line agreements totaling ¥9,700 million with 6 relationship banks, comprising a drawn balance of ¥3,800 million and an undrawn balance of ¥5,900 million.」
For financing subject to financial covenants and other conditions, the balance of long-term borrowings was updated to ¥5,283 million, the drawn balance to ¥3,800 million, and the undrawn balance to ¥5,900 million. - FY2020-Q3Update to Q3 borrowings balanceAnnual report
「As of 31 December 2019, the balance of long-term borrowings was ¥4,405 million. In addition, as of the end of the current third-quarter consolidated accounting period, the company had entered into overdraft facility agreements and commitment line agreements totaling ¥9,700 million with 6 relationship banks, comprising a drawn balance of ¥5,400 million and an undrawn balance of ¥4,300 million.」
For financing subject to financial covenants and other conditions, the drawn balance was updated to ¥5,400 million, the undrawn balance to ¥4,300 million, and the balance of long-term borrowings to ¥4,405 million. - FY2020-Q1WorsenedAnnual report
「As of 30 June 2019, the balance of long-term borrowings was ¥4,783 million. In addition, as of the end of the current first-quarter consolidated accounting period, the company had entered into overdraft facility agreements and commitment line agreements totaling ¥9,700 million with 6 relationship banks, comprising a drawn balance of ¥6,200 million and an undrawn balance of ¥3,500 million.」
The drawn balance increased from ¥5,500 million at the end of the previous fiscal year to ¥6,200 million, while the balance of long-term borrowings reached ¥4,783 million, updating the actual financial burden. - FY2019WorsenedAnnual report
「Interest-bearing debt represented approximately 23.9% of total assets at the end of the consolidated fiscal year. … We have entered into overdraft and commitment line agreements totaling ¥9,700 million with 6 transaction banks. These agreements contain financial covenants, and if we breach them, the group may be required to repay borrowings early, which could affect our group’s cash management and financial position.」
The ratio of interest-bearing debt rose from approximately 8% to approximately 23.9%, increasing cash management risk associated with the ¥9,700 million borrowing facilities and financial covenants. - FY2018First statedAnnual report
「Interest-bearing debt represented approximately 8% of total assets at the end of the consolidated fiscal year. We plan to continue strengthening our financial position by placing priority on cash flow management and reducing interest-bearing debt, but significant interest rate fluctuations could affect our group’s financial results, including through higher interest expenses.」
The approximately 8% ratio of interest-bearing debt to total assets, interest rate fluctuations, and the risk of demands for accelerated repayment resulting from breaches of financial covenants, including those related to commitment lines, are disclosed quantitatively.