Borrowing and Liquidity Risks Associated with Capital Investment
First written in FY2020. 20 of 24 entries say "Worsened", first in FY2021-Q2. Latest entry: FY2026.
Sakurasaku Plus moved to the "Worse" side of this theme in 2021, 3 years before the typical company in this theme (2024).
The whole theme swung hardest in 2025: 16 of 29 companies on the "Worse" side.
15 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The ratio of total interest-bearing debt to total assets remained high, at 29.2% in the previous consolidated fiscal year and 37.0% in the current consolidated fiscal year.」
The interest-bearing debt ratio increased from 29.2% to 37.0%. Long-term borrowings also increased by ¥1,385 million, expanding exposure to borrowing and liquidity risks associated with capital investment. - FY2026-H1WorsenedAnnual report
「Current liabilities at the end of the interim consolidated accounting period were ¥3,473 million, an increase of ¥525 million from the end of the previous consolidated fiscal year, or 17.8%. This was mainly due to a ¥352 million increase in short-term borrowings. Non-current liabilities were ¥5,846 million, an increase of ¥1,358 million from the end of the previous consolidated fiscal year, or 30.3%. This was mainly due to a ¥1,289 million increase in long-term borrowings.」
Short-term borrowings increased by ¥352 million and long-term borrowings by ¥1,289 million, expanding current liabilities, non-current liabilities and exposure to borrowings associated with capital investment and other activities from the end of the previous fiscal year. - FY2025MitigatedAnnual report
「Total interest-bearing debt as a percentage of total assets remained high, at 34.7% in the previous consolidated fiscal year and 29.2% in the current consolidated fiscal year.」
The interest-bearing debt ratio declined from 34.7% to 29.2%, and both short-term and long-term borrowings decreased. Although financial covenants remain in place, debt exposure has contracted. - FY2025-H1WorsenedAnnual report
「Current liabilities at the end of the interim consolidated accounting period were ¥5,320 million, an increase of ¥2,117 million from the end of the previous consolidated fiscal year, or 66.1%. This was mainly due to increases of ¥718 million in short-term borrowings and ¥1,391 million in long-term borrowings due for repayment within one year. Non-current liabilities were ¥4,266 million, a decrease of ¥880 million from the end of the previous consolidated fiscal year, or 17.1%. This was mainly due to a ¥771 million decrease in long-term borrowings.」
While long-term borrowings decreased, short-term borrowings and long-term borrowings due for repayment within one year increased, resulting in a ¥2,117 million increase in current liabilities. Exposure to borrowing and liquidity risks associated with capital investment and other activities has expanded from the end of the previous fiscal year. - FY2024MitigatedAnnual report
「Total interest-bearing debt as a percentage of total assets remained high, at 39.8% in the previous consolidated fiscal year and 34.7% in the current consolidated fiscal year.」
The interest-bearing debt ratio declined from 39.8% to 34.7%, and both short-term and long-term borrowings decreased from the end of the previous fiscal year. Although risks remain, debt exposure has contracted. - FY2024-Q3WorsenedAnnual report
「At the end of the third quarter of the current consolidated fiscal year, current liabilities totaled ¥4,401 million, an increase of ¥1,075 million from the end of the previous consolidated fiscal year (up 32.3% year on year). This was mainly due to an increase of ¥624 million in short-term borrowings. Fixed liabilities totaled ¥6,801 million, an increase of ¥581 million from the end of the previous consolidated fiscal year (up 9.4% year on year). This was mainly due to an increase of ¥450 million in long-term borrowings.」
Short-term borrowings increased by ¥624 million and long-term borrowings by ¥450 million, further expanding exposure to borrowing and liquidity risks associated with capital investment and other activities from the end of the previous fiscal year. - FY2024-Q2WorsenedAnnual report
「At the end of the second quarter of the current consolidated fiscal year, current liabilities totaled ¥3,803 million, an increase of ¥477 million from the end of the previous consolidated fiscal year (up 14.4% year on year). This was mainly due to an increase of ¥582 million in short-term borrowings. Fixed liabilities totaled ¥6,518 million, an increase of ¥298 million from the end of the previous consolidated fiscal year (up 4.8% year on year). This was mainly due to an increase of ¥377 million in long-term borrowings for the acquisition of real estate.」
Short-term borrowings increased by ¥582 million and long-term borrowings by ¥377 million, expanding current and fixed liabilities and borrowing exposure associated with capital expenditures and other factors from the end of the previous fiscal year. - FY2024-Q1WorsenedAnnual report
「At the end of the first quarter of the current consolidated fiscal year, current liabilities totaled ¥3,626 million, an increase of ¥300 million from the end of the previous consolidated fiscal year (up 9.0% year on year). This was mainly due to increases of ¥302 million in short-term borrowings and ¥157 million in provision for bonuses, despite a ¥155 million decrease in other current liabilities. Fixed liabilities totaled ¥6,672 million, an increase of ¥452 million from the end of the previous consolidated fiscal year (up 7.3% year on year). This was mainly due to an increase of ¥485 million in long-term borrowings.」
Short-term borrowings increased by ¥302 million and long-term borrowings by ¥485 million, expanding borrowing exposure associated with capital expenditures and other factors from the end of the previous fiscal year. Based on the disclosed amounts, interest-bearing debt was approximately 41.7% of total assets, up from 39.8% at the end of the previous fiscal year. - FY2023WorsenedAnnual report
「Interest-bearing debt as a percentage of total assets remained high, at 34.8% at the end of the previous consolidated fiscal year and 39.8% at the end of the current consolidated fiscal year.」
The interest-bearing debt ratio rose from 34.8% to 39.8%, and long-term borrowings also increased by ¥1,100 million, expanding the borrowing and liquidity risks associated with capital expenditures. - FY2023-Q3WorsenedAnnual report
「At the end of the third quarter of the current consolidated fiscal year, current liabilities totaled ¥5,292 million, an increase of ¥1,695 million from the end of the previous consolidated fiscal year (up 47.1% year on year). This was mainly due to an increase of ¥1,732 million in short-term borrowings. Fixed liabilities totaled ¥5,609 million, an increase of ¥439 million from the end of the previous consolidated fiscal year (up 8.5% year on year). This was mainly due to an increase of ¥412 million in long-term borrowings.」
Short-term borrowings increased by ¥1,732 million and long-term borrowings by ¥412 million in connection with new openings and real estate holdings, further expanding exposure to borrowing and liquidity risks from the previous quarter. - FY2023-Q2WorsenedAnnual report
「At the end of the second quarter of the current consolidated fiscal year, current liabilities totaled ¥4,625 million, an increase of ¥1,028 million from the end of the previous consolidated fiscal year (up 28.6% year on year). This was mainly due to an increase of ¥1,186 million in short-term borrowings. Fixed liabilities totaled ¥5,432 million, an increase of ¥261 million from the end of the previous consolidated fiscal year (up 5.1% year on year). This was mainly due to an increase of ¥302 million in long-term borrowings for the acquisition of real estate.」
Short-term borrowings increased by ¥1,186 million and long-term borrowings by ¥302 million in connection with the acquisition of real estate in Asakusa and other factors, expanding current and fixed liabilities and borrowing exposure. - FY2023-Q1WorsenedAnnual report
「At the end of the first quarter of the current consolidated fiscal year, current liabilities totaled ¥4,073 million, an increase of ¥476 million from the end of the previous consolidated fiscal year (up 13.2% year on year). This was mainly due to increases of ¥468 million in short-term borrowings and ¥158 million in provision for bonuses, despite a ¥243 million decrease in other current liabilities. Fixed liabilities totaled ¥5,247 million, an increase of ¥77 million from the end of the previous consolidated fiscal year (up 1.5% year on year). This was mainly due to an increase of ¥73 million in long-term borrowings for the opening of new facilities.」
Short-term borrowings increased by ¥468 million and long-term borrowings by ¥73 million in connection with new facility openings, expanding liabilities and borrowing exposure. - FY2022WorsenedAnnual report
「Interest-bearing debt as a percentage of total assets remained high, at 30.0% at the end of the previous consolidated fiscal year and 34.8% at the end of the current consolidated fiscal year.」
The interest-bearing debt ratio rose from 30.0% to 34.8% due to borrowings associated with new facility openings, expanding the borrowing and liquidity risks related to capital expenditures. - FY2022-Q3WorsenedAnnual report
「At the end of the third quarter of the current consolidated fiscal year, current liabilities totaled ¥5,017 million, an increase of ¥2,209 million from the end of the previous consolidated fiscal year (up 78.7% year on year). This was mainly due to increases of ¥523 million in short-term borrowings and ¥1,369 million in long-term borrowings due within one year. Fixed liabilities totaled ¥5,383 million, an increase of ¥1,065 million from the end of the previous consolidated fiscal year (up 24.7% year on year). This was mainly due to an increase of ¥662 million in long-term borrowings for the opening of new facilities.」
Short-term borrowings, long-term borrowings due within one year and long-term borrowings all increased in connection with new facility openings, expanding debt exposure. - FY2022-Q2WorsenedAnnual report
「Fixed liabilities totaled ¥5,658 million, an increase of ¥1,341 million from the end of the previous consolidated fiscal year (up 31.1% year on year). This was mainly due to an increase of ¥1,374 million in long-term borrowings for the opening of new facilities.」
Long-term borrowings increased by ¥1,374 million in connection with new facility openings, while fixed liabilities increased by ¥1,341 million. Short-term borrowings also increased by ¥903 million, further expanding borrowing exposure associated with capital expenditures. - FY2022-Q1WorsenedAnnual report
「Fixed liabilities totaled ¥5,192 million, an increase of ¥874 million from the end of the previous consolidated fiscal year (up 20.3% year on year). This was mainly due to an increase of ¥868 million in long-term borrowings for the opening of new facilities.」
Long-term borrowings increased by ¥868 million due to borrowings for new facility openings, expanding exposure to the borrowing and liquidity risks associated with capital expenditures. - FY2021MitigatedAnnual report
「Interest-bearing debt as a percentage of total assets remained high, at 39.1% at the end of the previous consolidated fiscal year and 30.0% at the end of the current consolidated fiscal year.」
The risks associated with increased borrowings from new openings and financial covenants continue, although the interest-bearing debt ratio declined from 39.1% to 30.0%. The Group also presented a funding policy combining borrowings, bond issuance and share issuance. - FY2021-Q3WorsenedAnnual report
「This was mainly due to an increase of ¥1,027,183 thousand in long-term borrowings due within one year.」
Long-term borrowings due within one year increased by ¥1,027,183 thousand in connection with the completion and opening of new facilities, expanding borrowing exposure. - FY2021-Q2WorsenedAnnual report
「This was mainly due to an increase of ¥1,553,771 thousand in long-term borrowings for the opening of new facilities.」
Long-term borrowings increased to finance new openings, expanding the Group's debt exposure related to the borrowing and liquidity risks associated with existing capital expenditures. - FY2020First statedAnnual report
「Interest-bearing debt as a percentage of total assets remained high, at 48.0% for the fiscal year ended July 2019 and 39.1% for the fiscal year ended July 2020.」
The risks identified include increased borrowings associated with new openings, interest-rate fluctuations, inability to raise funds and accelerated repayment resulting from breaches of financial covenants.