High Levels of Interest-Bearing Debt and Risk of Rising Interest Rates
First written in FY2021. 8 of 16 entries say "Worsened", first in FY2024. Latest entry: 2026-06-29.
The whole theme swung hardest in 2017: 26 of 105 companies on the "Worse" side.
- FY2026-H1WorsenedAnnual report
「Fixed liabilities at the end of the interim consolidated accounting period increased by ¥6,656.126 million from the end of the previous consolidated fiscal year to ¥17,666.390 million. This was mainly due to a ¥5,455.355 million increase in long-term borrowings.」
Long-term borrowings increased by ¥5,455.355 million in connection with the acquisition of サーテックカリヤ・グループ and other transactions, while short-term borrowings also increased by ¥2,340.000 million, increasing exposure to the high level of interest-bearing debt and interest burden. - FY2025-H1WorsenedAnnual report
「This was mainly attributable to a ¥500.000 million increase in short-term borrowings, while electronic recorded obligations decreased by ¥316.734 million, accounts payable by ¥205.773 million, and notes and accounts payable by ¥196.768 million. / This was mainly attributable to a ¥211.580 million increase in long-term borrowings, while deferred tax liabilities decreased by ¥334.596 million as a result of the fair value measurement of investment securities.」
Short-term borrowings increased by ¥500.000 million and long-term borrowings by ¥211.580 million, increasing total borrowings, including the current portion of long-term borrowings, from the end of the previous fiscal year. - FY2024WorsenedAnnual report
「Short-term borrowings 600,000 1,400,000 / Long-term borrowings (excluding amounts due for repayment within 1 year) 4,639,400 4,818,601 / Total 6,200,435 7,103,502」
Total interest-bearing debt and other borrowings increased from ¥6,200.435 million at the end of the previous fiscal year to ¥7,103.502 million, with both short-term and long-term borrowings increasing. - FY2024-Q3MitigatedAnnual report
「This was mainly attributable to a ¥446.240 million decrease in long-term borrowings, while deferred tax liabilities increased by ¥187.549 million as a result of the fair value measurement of investment securities.」
Long-term borrowings decreased by ¥446.240 million from the end of the previous fiscal year, indicating progress in addressing the high level of interest-bearing debt. - FY2024-Q2MitigatedAnnual report
「This was mainly attributable to a ¥211.780 million increase in deferred tax liabilities resulting from the fair value measurement of investment securities, while long-term borrowings decreased by ¥436.490 million.」
Long-term borrowings decreased by ¥436.490 million from the end of the previous fiscal year, indicating progress in addressing the high level of interest-bearing debt. - FY2024-Q1MitigatedAnnual report
「This was mainly attributable to a ¥113.643 million increase in deferred tax liabilities resulting from the fair value measurement of investment securities, while long-term borrowings decreased by ¥153.363 million.」
Long-term borrowings decreased by ¥153.363 million at the end of the first quarter, providing financial results that indicate progress in addressing the high level of interest-bearing debt. - FY2023MitigatedAnnual report
「This was mainly attributable to a ¥514.462 million decrease in long-term borrowings following the revision of the LBO loan.」
Progress was made in addressing the high level of interest-bearing debt and interest burden through the revision of the LBO loan and a ¥514.462 million decrease in long-term borrowings. - FY2023-Q3MitigatedAnnual report
「This was mainly attributable to a ¥499.583 million decrease in long-term borrowings and a ¥108.815 million decrease in deferred tax liabilities resulting from the fair value measurement of investment securities.」
Long-term borrowings decreased by ¥499.583 million, reducing fixed liabilities. However, the current portion of long-term borrowings increased. - FY2023-Q2MitigatedAnnual report
「This was mainly attributable to a ¥449.338 million decrease in long-term borrowings and a ¥91.889 million decrease in deferred tax liabilities resulting from the fair value measurement of investment securities.」
Fixed liabilities at the end of the second quarter decreased by ¥566.507 million from the end of the previous fiscal year, mainly due to a ¥449.338 million decrease in long-term borrowings. - FY2022RestatedAnnual report
「The Group primarily finances acquisitions through borrowings from financial institutions. Because interest-bearing debt is high relative to total assets, the Group is reviewing its financing methods and curbing interest-bearing debt. However, higher interest rates could increase interest expenses and put pressure on earnings.」
Continues to disclose the high level of interest-bearing debt and interest rate hike risk associated with acquisitions financed through borrowings such as LBOs. - FY2021First statedAnnual report
「When conducting M&A, the Company finances acquisition funds through LBO financing based on the normalized earning power of each subsidiary, resulting in a high interest-bearing debt ratio.」
Disclosed the debt burden associated with financing acquisitions through LBOs and the pressure on earnings from higher interest rates.