Funding Environment and Liquidity Risk
First written in FY2016. 13 of 26 entries say "Worsened", first in FY2019-Q3. Latest entry: 2026-07-29.
Nec moved to the "Worse" side of this theme in 2023, 1 year before the typical company in this theme (2024).
25 other companies' latest entry also says "Worsened".
- 2026-07-29WorsenedEarnings presentation materials
「Cash and cash equivalents at end of period 659.0 434.7 △224.3 Net D/E ratio (x) -0.08 0.07 △0.15pt」
Cash and cash equivalents declined from the previous fiscal year-end, while the net D/E ratio changed from negative to positive. The improvement in liquidity and financial headroom therefore receded in the first quarter. - FY2026MitigatedAnnual report
「At the end of the consolidated fiscal year, the company secured on-hand liquidity of ¥889.0 billion, comprising ¥659.0 billion in cash and cash equivalents and ¥230.0 billion in unused commitment lines, thereby maintaining the necessary level of liquidity.」
On-hand liquidity increased from ¥822.6 billion in the previous fiscal year to ¥889.0 billion, while interest-bearing debt also decreased. Funding facilities and the ratio of long-term funding were also maintained or improved. - FY2026-H1Free cash flow increased alongside a decrease in cashAnnual report
「As a result, free cash flow, calculated as the sum of cash flow from operating activities and cash flow from investing activities, generated ¥174.2 billion in cash, an increase of ¥168.4 billion from the same period of the previous year. …As a result, cash and cash equivalents totaled ¥454.1 billion, a decrease of ¥130.5 billion from the end of the previous fiscal year.」
Although free cash flow generated a substantial inflow, cash and cash equivalents decreased by ¥130.5 billion from the end of the previous fiscal year due to outflows from financing activities and other factors. Both factors improving and factors reducing liquidity were present. - FY2025MitigatedAnnual report
「At the end of the consolidated fiscal year, the company secured on-hand liquidity of ¥822.6 billion, comprising ¥584.6 billion in cash and cash equivalents and ¥238.0 billion in unused commitment lines, thereby maintaining the necessary level of liquidity.」
On-hand liquidity increased from ¥665.5 billion in the previous fiscal year to ¥822.6 billion. Despite the increase in debt, liquidity provided by cash and unused facilities improved. - FY2025-H1Free cash flow turning positive alongside an increase in debtAnnual report
「As a result, free cash flow, calculated as the sum of cash flow from operating activities and cash flow from investing activities, generated ¥5.8 billion in cash, an increase of ¥14.0 billion from the same period of the previous year. …As a result, cash and cash equivalents totaled ¥484.0 billion, an increase of ¥7.5 billion from the end of the previous fiscal year.」
Free cash flow turned positive and cash and cash equivalents also increased, while interest-bearing debt and net interest-bearing debt increased from the end of the previous fiscal year, resulting in liquidity improvement alongside an increase in debt. - FY2024-Q3WorsenedAnnual report
「As a result, free cash flow, calculated as the sum of cash flow from operating activities and cash flow from investing activities, was an outflow of ¥19.0 billion, representing a ¥72.6 billion reduction in the outflow from the same period of the previous year. …As a result, cash and cash equivalents totaled ¥383.0 billion, a decrease of ¥36.5 billion from the end of the previous fiscal year.」
Although the free cash flow deficit narrowed from the same period of the previous year, cash and cash equivalents decreased by ¥36.5 billion from the end of the previous fiscal year, while interest-bearing debt and net interest-bearing debt also increased, and liquidity and funding conditions continued to deteriorate. - FY2024-Q2WorsenedAnnual report
「As a result, free cash flow, calculated as the sum of cash flow from operating activities and cash flow from investing activities, was an outflow of ¥8.2 billion, representing a ¥28.1 billion reduction in the outflow from the same period of the previous year. …As a result, cash and cash equivalents totaled ¥403.1 billion, a decrease of ¥16.4 billion from the end of the previous fiscal year.」
Free cash flow was an outflow of ¥8.2 billion, and cash and cash equivalents also decreased by ¥16.4 billion from the end of the previous fiscal year. Liquidity metrics deteriorated from the end of the previous fiscal year. - FY2024-Q1MitigatedAnnual report
「As a result, cash and cash equivalents totaled ¥477.7 billion, an increase of ¥58.2 billion from the end of the previous fiscal year.」
Cash and cash equivalents increased by ¥58.2 billion from the end of the previous fiscal year. Total interest-bearing debt increased by ¥18.0 billion, while net interest-bearing debt decreased by ¥40.2 billion and the net debt-to-equity ratio improved to 0.09x. - FY2023WorsenedAnnual report
「At the end of the consolidated fiscal year, the company secured on-hand liquidity of ¥665.5 billion, comprising ¥419.5 billion in cash and cash equivalents and ¥246.0 billion in unused commitment lines, thereby maintaining the necessary level of liquidity.」
Although the company stated that it maintained the necessary level of liquidity, on-hand liquidity decreased from ¥756.8 billion in the previous fiscal year to ¥665.5 billion. - FY2023-Q3WorsenedAnnual report
「Cash flow from operating activities for the nine-month period ended in the third quarter was an outflow of ¥59.5 billion and deteriorated by ¥64.8 billion from the same period of the previous year, due to the deterioration in working capital and other factors. …As a result, free cash flow, calculated as the sum of cash flow from operating activities and cash flow from investing activities, was an outflow of ¥91.6 billion, a deterioration of ¥64.2 billion from the same period of the previous year. …As a result, cash and cash equivalents totaled ¥405.6 billion, a decrease of ¥25.1 billion from the end of the previous fiscal year.」
Cash flow from operating activities for the nine-month period was an outflow of ¥59.5 billion, free cash flow was an outflow of ¥91.6 billion, and cash and cash equivalents also decreased by ¥25.1 billion from the end of the previous fiscal year. - FY2023-Q2WorsenedAnnual report
「As a result, free cash flow, calculated as the sum of cash flow from operating activities and cash flow from investing activities, was an outflow of ¥36.3 billion, a deterioration of ¥37.4 billion from the same period of the previous year. Cash flow from financing activities was an inflow of ¥24.2 billion, despite outflows from bond redemptions and repayments of long-term borrowings, due to inflows from bond issuance and increases in short-term borrowings. The impact of foreign exchange movements on cash and cash equivalents was an increase of ¥18.0 billion, mainly due to the depreciation of the yen. As a result, cash and cash equivalents totaled ¥436.7 billion, an increase of ¥5.9 billion from the end of the previous fiscal year.」
Cash and cash equivalents increased from the end of the previous fiscal year, partly due to the foreign exchange impact of the weaker yen, while free cash flow was an outflow of ¥36.3 billion and both interest-bearing debt and net interest-bearing debt increased. - FY2022MitigatedAnnual report
「At the end of the consolidated fiscal year, the company secured on-hand liquidity of ¥756.8 billion, comprising ¥430.8 billion in cash and cash equivalents and ¥326.0 billion in unused commitment lines, thereby maintaining the necessary level of liquidity.」
On-hand liquidity increased from ¥607.3 billion in the previous fiscal year to ¥756.8 billion, while interest-bearing debt also decreased. The company also maintained a ¥500.0 billion commercial paper issuance facility, a ¥328.0 billion commitment line facility and a ¥300.0 billion bond issuance facility. - FY2022-Q3WorsenedAnnual report
「As a result, free cash flow, calculated as the sum of cash flow from operating activities and cash flow from investing activities, was an outflow of ¥27.4 billion, an improvement of ¥80.8 billion from the same period of the previous year. …As a result, cash and cash equivalents totaled ¥413.9 billion, a decrease of ¥109.5 billion from the end of the previous fiscal year.」
Free cash flow improved year on year but was an outflow of ¥27.4 billion, while cash and cash equivalents decreased by ¥109.5 billion from the end of the previous fiscal year. Net interest-bearing debt also increased, and liquidity conditions continued to deteriorate. - FY2022-Q2WorsenedAnnual report
「As a result, free cash flow, calculated as the sum of cash flow from operating activities and cash flow from investing activities, generated ¥1.1 billion in cash, a deterioration of ¥28.6 billion from the same period of the previous year. …As a result, cash and cash equivalents totaled ¥483.4 billion, a decrease of ¥39.9 billion from the end of the previous fiscal year.」
Free cash flow remained a ¥1.1 billion inflow but deteriorated by ¥28.6 billion year on year, while cash and cash equivalents also decreased by ¥39.9 billion from the end of the previous fiscal year. - FY2022-Q1MitigatedAnnual report
「As a result, free cash flow, calculated as the sum of cash flow from operating activities and cash flow from investing activities, was an inflow of ¥65.0 billion, a deterioration of ¥19.2 billion from the same period of the previous year. ... As a result, cash and cash equivalents amounted to ¥562.9 billion, up ¥39.6 billion from the end of the previous fiscal year.」
Free cash flow deteriorated year on year but generated ¥65.0 billion in cash, while cash and cash equivalents increased by ¥39.6 billion from the end of the previous fiscal year. Liquidity metrics improved from the end of the previous fiscal year. - FY2021-Q3WorsenedAnnual report
「As a result, free cash flow, calculated as the sum of cash flow from operating activities and cash flow from investing activities, was an outflow of ¥108.2 billion, a deterioration of ¥157.4 billion from the same period of the previous year. ... Interest-bearing debt increased by ¥158.2 billion from the end of the previous fiscal year to ¥833.6 billion, ... Net interest-bearing debt increased by ¥149.7 billion from the end of the previous fiscal year to ¥465.9 billion, and the net debt-to-equity ratio was 0.44 times, a deterioration of 0.09 points from the end of the previous fiscal year.」
Free cash flow was a substantial outflow, and total and net interest-bearing debt and the gross and net D/E ratios deteriorated from the end of the previous fiscal year. Cash and cash equivalents, however, increased by ¥8.5 billion. - FY2021-Q1MitigatedAnnual report
「As a result, free cash flow, calculated as the sum of cash flow from operating activities and cash flow from investing activities, was an inflow of ¥84.2 billion, broadly in line with the same period of the previous year. ... Cash and cash equivalents amounted to ¥405.6 billion, up ¥46.3 billion from the end of the previous fiscal year.」
Free cash flow was an inflow of ¥84.2 billion, and cash and cash equivalents also increased by ¥46.3 billion from the end of the previous fiscal year. - FY2020-Q3WorsenedAnnual report
「Interest-bearing debt increased by ¥141.9 billion from the end of the previous fiscal year to ¥694.4 billion, and the debt-to-equity ratio was 0.78 times, a deterioration of 0.14 points from the end of the previous fiscal year. On a net basis, interest-bearing debt, calculated by deducting cash and cash equivalents from interest-bearing debt, increased by ¥167.1 billion to ¥441.3 billion, and the net debt-to-equity ratio was 0.50 times, a deterioration of 0.18 points from the end of the previous fiscal year.」
Interest-bearing debt, net interest-bearing debt, and the gross and net D/E ratios deteriorated from the end of the previous fiscal year. By contrast, they improved from the beginning of the current fiscal year after adjusting for the impact of IFRS 16. - FY2020-Q2WorsenedAnnual report
「Interest-bearing debt increased by ¥129.4 billion from the end of the previous fiscal year to ¥681.9 billion, and the debt-to-equity ratio was 0.79 times, a deterioration of 0.15 points from the end of the previous fiscal year. On a net basis, interest-bearing debt, calculated by deducting cash and cash equivalents from interest-bearing debt, increased by ¥137.7 billion to ¥411.9 billion, and the net debt-to-equity ratio was 0.48 times, a deterioration of 0.16 points from the end of the previous fiscal year.」
Interest-bearing debt and gross and net D/E ratios deteriorated from the end of the previous fiscal year, mainly due to the recognition of lease liabilities under IFRS 16. Cash and cash equivalents also declined by ¥8.3 billion from the end of the previous fiscal year. - FY2019WorsenedAnnual report
「Free cash flow for the consolidated fiscal year was an outflow of ¥12.4 billion, ... Cash and cash equivalents amounted to ¥278.3 billion, down ¥67.7 billion from the end of the previous consolidated fiscal year. ... The company secured total liquidity of ¥607.3 billion and maintained the necessary level of liquidity.」
Although the company secured cash on hand, its cash balance and free cash flow deteriorated, and cash on hand also declined from ¥675.0 billion in the previous fiscal year to ¥607.3 billion. - FY2019-Q3WorsenedAnnual report
「As a result, free cash flow, calculated as the sum of cash flow from operating activities and cash flow from investing activities, was an outflow of ¥63.0 billion, a deterioration of ¥101.1 billion from the same period of the previous year. ... Cash and cash equivalents amounted to ¥268.0 billion, down ¥78.0 billion from the end of the previous fiscal year.」
Free cash flow for the first 3 quarters was an outflow of ¥63.0 billion, and cash and cash equivalents also declined by ¥78.0 billion from the end of the previous fiscal year. - FY2018AdvancedAnnual report
「At the end of the consolidated fiscal year, the company secured cash on hand of ¥675.0 billion, comprising ¥346.0 billion in cash and cash equivalents and ¥329.0 billion in undrawn commitment lines, and maintained the necessary level of liquidity.」
Cash on hand totaled ¥675.0 billion, up from ¥568.0 billion at the end of the previous fiscal year. Undrawn commitment lines, commercial paper issuance capacity, and bond issuance capacity were also maintained. - FY2017AdvancedAnnual report
「At the end of the consolidated fiscal year, the company secured cash on hand of ¥568.0 billion, comprising ¥240.0 billion in cash and cash equivalents and ¥328.0 billion in undrawn commitment lines, and maintained the necessary level of liquidity.」
The company secured total liquidity of ¥568.0 billion and also disclosed a ¥500.0 billion commercial paper issuance capacity, a ¥330.0 billion commitment line capacity, and a ¥300.0 billion bond issuance capacity. - FY2016First statedAnnual report
「An important financial policy of the NEC Group is to maintain cash on hand, namely the total of cash and cash equivalents and the undrawn amount under commitment line agreements entered into with multiple financial institutions, at an appropriate level for future business activities.」
The company has secured ¥192.3 billion in cash and cash equivalents and ¥322.0 billion in undrawn commitment lines, for total liquidity of ¥514.3 billion.