High Reliance on Interest-Bearing Debt and Financing Constraints
First written in FY2017. 11 of 13 entries say "Mitigated", first in FY2018. Latest entry: FY2027-H1.
The whole theme swung hardest in 2020: 63 of 142 companies on the "Worse" side.
83 other companies' latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「Current liabilities were ¥3,152 million, a decrease of ¥639 million from the end of the previous consolidated fiscal year. This was attributable mainly to decreases of ¥252 million in long-term borrowings due for repayment within one year, ¥210 million in short-term borrowings, and ¥68 million in trade payables, comprising accounts payable and electronically recorded obligations.」
Short-term borrowings and long-term borrowings due for repayment within one year decreased, resulting in a ¥639 million decline in current liabilities from the end of the previous fiscal year. The financial burden associated with the company's high reliance on interest-bearing debt is reflected in the balance at the end of the interim period. - FY2026-H1MitigatedAnnual report
「Current liabilities amounted to ¥3.989 billion, an increase of ¥164 million from the end of the previous consolidated fiscal year. This was mainly due to increases of ¥58 million in notes and accounts payable, ¥56 million in short-term borrowings and ¥132 million in the current portion of long-term borrowings, despite a ¥59 million decrease in income taxes payable. Non-current liabilities amounted to ¥1.768 billion, a decrease of ¥368 million from the end of the previous consolidated fiscal year. This was mainly due to a ¥342 million decrease in long-term borrowings.」
Although short-term borrowings and other liabilities increased, long-term borrowings declined by ¥342 million, and total non-current liabilities also declined by ¥368 million. - FY2025MitigatedAnnual report
「Interest-bearing debt balance (¥ millions) 3,672 2,008 Total assets (¥ millions) 16,681 15,700 Interest-bearing debt dependence (%) 22.0 12.8」
The interest-bearing debt balance declined from ¥3.672 billion to ¥2.008 billion, and interest-bearing debt dependence declined from 22.0% to 12.8%. The risks associated with financing constraints and financial covenant requirements continue to be disclosed. - FY2025-H1MitigatedAnnual report
「Current liabilities were ¥438.5 million, down ¥106.5 million from the end of the previous consolidated fiscal year. This was mainly due to an ¥115.5 million decrease in short-term borrowings. Non-current liabilities were ¥232.6 million, down ¥21.7 million from the end of the previous consolidated fiscal year, mainly due to a ¥21.1 million decrease in long-term borrowings.」
Short-term borrowings decreased by ¥115.5 million and long-term borrowings by ¥21.1 million, with the resulting decline in interest-bearing debt reflected in the financial position at the end of the interim period. - FY2024WorsenedAnnual report
「Interest-bearing debt (¥ thousand) 3,442,810 3,672,862 Total assets (¥ thousand) 16,238,801 16,681,725 Interest-bearing debt reliance ratio (%) 21.2 22.0」
Interest-bearing debt increased from ¥344.281 million to ¥367.286 million, and the interest-bearing debt reliance ratio rose from 21.2% to 22.0%. The company states that repayment may be required if financial maintenance requirements are breached, while it has secured a ¥900 million undrawn commitment line. - FY2023MitigatedAnnual report
「Interest-bearing debt (¥ thousand) 3,969,476 3,442,810 Total assets (¥ thousand) 13,487,001 16,238,801 Interest-bearing debt reliance ratio (%) 29.4 21.2」
Interest-bearing debt declined from ¥396.947 million to ¥344.281 million, and the interest-bearing debt reliance ratio declined from 29.4% to 21.2%. The company continues to disclose financing constraints and financial maintenance requirements. - FY2022MitigatedAnnual report
「Interest-bearing debt (¥ thousand) 5,001,551 3,969,476 Total assets (¥ thousand) 12,388,300 13,487,001 Interest-bearing debt reliance ratio (%) 40.4 29.4」
Interest-bearing debt declined from ¥5.015 billion to ¥3.969 billion, and the interest-bearing debt reliance ratio declined from 40.4% to 29.4%. At the same time, the company continues to disclose the possibility of financing constraints and financial maintenance requirements. - FY2020MitigatedAnnual report
「Interest-bearing debt (¥ thousand) 5,171,292 Total assets (¥ thousand) 12,257,259 Interest-bearing debt reliance ratio (%) 42.2」
Although the interest-bearing debt reliance ratio declined from 42.5% to 42.2%, the company continues to disclose the possibility of financing constraints and the relatively high level of the ratio. - FY2018MitigatedAnnual report
「Interest-bearing debt (¥ thousand) 5,570,551 Total assets (¥ thousand) 11,806,803 Interest-bearing debt reliance ratio (%) 47.2」
Interest-bearing debt declined from ¥5.824 billion to ¥5.570 billion, and the interest-bearing debt reliance ratio declined from 47.5% to 47.2%. At the same time, the company continues to describe the ratio as relatively high. - FY2017First statedAnnual report
「The Group eliminated the note regarding the going concern assumption during the current consolidated fiscal year, but its reliance on interest-bearing debt has remained relatively high. Under these circumstances, if changes in monetary policy, a decline in the company's creditworthiness or other factors constrain its ability to raise funds, the Group's operating results and financial position may be affected.」
The company identifies financing constraints arising from monetary policy and declining creditworthiness as a risk, against interest-bearing debt of ¥5.824 billion and an interest-bearing debt reliance ratio of 47.5%.