Risks Related to Reliance on Borrowings, Liquidity and Financing
First written in FY2019. 7 of 18 entries say "Mitigated", first in FY2020-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2020: 63 of 142 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「Short-term borrowings 1,200 1,300 Long-term borrowings 1,000 1,000」
Short-term borrowings increased from ¥1,200 million to ¥1,300 million, while long-term borrowings remained unchanged at ¥1,000 million. Total interest-bearing debt was ¥2,300 million, of which short-term borrowings of ¥1,000 million and long-term borrowings of ¥1,000 million were subject to financial covenants. - FY2026-H1Increase in short-term borrowings, long-term borrowings unchangedAnnual report
「Short-term borrowings 1,200 1,300 Long-term borrowings 1,000 1,000」
Short-term borrowings increased from ¥1,200 million to ¥1,300 million, while long-term borrowings remained unchanged at ¥1,000 million. Borrowings subject to financial covenants totaled ¥2,000 million. - FY2025-H1Increase in short-term borrowings, decrease in borrowings subject to financial covenantsAnnual report
「Short-term borrowings 66 200 Current portion of long-term borrowings 1,170 1,085 Long-term borrowings 1,000 1,000」
Short-term borrowings increased from ¥66 million to ¥200 million, while the current portion of long-term borrowings decreased from ¥1,170 million to ¥1,085 million, and long-term borrowings remained unchanged at ¥1,000 million. - FY2024WorsenedAnnual report
「At the end of the current consolidated fiscal year, the ¥1,170 million in long-term borrowings due for repayment within one year and the ¥1,000 million in long-term borrowings were subject to the following financial covenants.」
Interest-bearing debt at the fiscal year-end was ¥2,236 million, including ¥66 million in short-term borrowings, up from ¥1,740 million in the same period of the previous year. The Company newly disclosed financial covenants relating to profit, net assets, the debt repayment period and the net debt-to-EBITDA ratio. - FY2024-Q3New borrowing after a decrease in the fiscal year-end borrowing balanceAnnual report
「Total non-current liabilities at the end of the third quarter of the current consolidated fiscal year were ¥209 million, a decrease of ¥1,477 million from the end of the previous consolidated fiscal year. This was primarily due to a decrease of ¥1,470 million in long-term borrowings. ／Borrowing amount ¥1 billion ／The borrowing is from a financial institution with which the Company does business, to fund working capital for future business expansion and achieve an optimal capital structure with due consideration given to the cost of capital.」
At the fiscal year-end, long-term borrowings had decreased by ¥1,470 million, and borrowings subject to financial covenants had also declined to ¥1,170 million. Subsequently, however, the Company resolved to obtain new borrowings of ¥1 billion for working capital and other purposes related to business expansion, and new financial covenants were established. - FY2024-Q2Increase in short-term borrowings and decline in long-term borrowingsAnnual report
「This was primarily due to an increase of ¥366 million in short-term borrowings, despite decreases of ¥100 million in long-term borrowings due for repayment within one year and ¥46 million in accounts payable.」
Short-term borrowings increased by ¥366 million, while long-term borrowings decreased by ¥385 million. Borrowings subject to financial covenants stood at ¥1,255 million, unchanged from the end of the previous consolidated fiscal year. - FY2024-Q1MitigatedAnnual report
「Borrowings balance ¥1,740 million ¥1,255 million」
Borrowings subject to financial covenants decreased from ¥1,740 million at the end of the previous consolidated fiscal year to ¥1,255 million, reducing borrowing and liquidity exposure. - FY2023-Q3MitigatedAnnual report
「Borrowings balance ¥2,010 million ¥1,740 million」
Borrowings subject to financial covenants decreased from ¥2,010 million at the end of May 2022 to ¥1,740 million at the end of February 2023, while short-term borrowings declined from ¥500 million to zero. Borrowing and liquidity exposure has decreased. - FY2023-Q1MitigatedAnnual report
「Total non-current liabilities at the end of the first quarter of the current consolidated fiscal year were ¥1,870 million, a decrease of ¥138 million from the end of the previous consolidated fiscal year. This was primarily due to a decrease of ¥135 million in long-term borrowings.」
Long-term borrowings decreased by ¥135 million, and borrowings subject to financial covenants also declined from ¥2,010 million to ¥1,875 million. - FY2022WorsenedAnnual report
「Current liabilities at the end of the current consolidated fiscal year were ¥2,861 million, an increase of ¥606 million from the end of the previous consolidated fiscal year. This was primarily due to an increase of ¥500 million in short-term borrowings. Non-current liabilities were ¥2,009 million, an increase of ¥198 million from the end of the previous consolidated fiscal year. This was due to an increase of ¥230 million in long-term borrowings.」
Short-term borrowings were ¥500 million, long-term borrowings were ¥1,740 million and the portion due within one year was ¥270 million, bringing total interest-bearing debt to ¥2,510 million. The new ¥500 million borrowing was also subject to financial covenants, increasing borrowing and liquidity exposure. - FY2022-Q3WorsenedAnnual report
「This was primarily due to an increase of ¥500 million in short-term borrowings, despite a decrease of ¥106.377 million in accounts payable.」
In addition to the new ¥500 million in short-term borrowings, long-term borrowings also increased by ¥367.3 million. Although existing borrowings subject to financial covenants declined from ¥1,680 million to ¥1,510 million, the new ¥500 million borrowing was subject to similar financial covenants, increasing borrowing and liquidity exposure. - FY2022-Q1MitigatedAnnual report
「Borrowings outstanding」
Borrowings subject to financial covenants decreased from ¥1,680 million at the end of the previous consolidated fiscal year to ¥1,595 million, reducing borrowing and financing exposure. - FY2021-Q3MitigatedAnnual report
「This was primarily due to decreases of ¥170 million in long-term borrowings and ¥13.635 million in deferred tax liabilities.」
Long-term borrowings decreased by ¥170 million from the end of the previous consolidated fiscal year, and borrowings subject to financial covenants also declined from ¥1,850 million to ¥1,680 million. - FY2021-Q1MitigatedAnnual report
「This was primarily due to an increase of ¥60.805 million in accounts payable, despite decreases of ¥80 million in short-term borrowings, ¥103.816 million in income taxes payable and ¥26.183 million in the bonus provision.」
Short-term borrowings decreased by ¥80 million and long-term borrowings also decreased by ¥85 million. Borrowings subject to financial covenants declined from ¥1,850 million to ¥1,765 million. - FY2020RestatedAnnual report
「The Company and 株式会社みずほ銀行 entered into a loan agreement dated 22 January 2020. As of the end of the current consolidated fiscal year, the long-term borrowings of ¥1,850 million, including ¥170 million in long-term borrowings due for repayment within one year, were subject to the following financial covenants.」
The borrowings of ¥1,850 million incurred in connection with the acquisition of a subsidiary, together with financial covenants requiring the maintenance of profit, net assets and the debt repayment period, continue to be disclosed. - FY2020-Q3Specific financial constraintsAnnual report
「As of the end of the third quarter of the current consolidated fiscal year, the long-term borrowings of ¥1,850 million, including ¥170 million in long-term borrowings due for repayment within one year, were subject to the following financial covenants.」
The company specifically disclosed that, following consolidation, its ¥1,850 million in long-term borrowings was subject to financial covenants requiring the maintenance of profit, net assets and the debt repayment period. - FY2020-Q1MitigatedAnnual report
「This was primarily due to an increase of ¥343.850 million each in share capital and capital surplus, mainly as a result of a public offering of new shares. As a result, the equity ratio was 68.8% (20.7% at the end of the previous fiscal year).」
The increase in equity and the equity ratio resulting from the public offering reduced the Company's borrowing dependence and balance-sheet exposure compared with the end of the previous fiscal year. - FY2019First statedAnnual report
「Our borrowings from financial institutions represent a high proportion relative to shareholders' equity.」
The company needs to secure funding for working capital and development investments and is considering various financing options, including strengthening its equity base and issuing new shares.