Risk of maintaining equity and earnings under financial covenants
First written in FY2018. 1 of 3 entries say "Restated". Latest entry: FY2026.
- FY2026ReframedAnnual report
「1. The consolidated D/E ratio at each consolidated fiscal year-end must not exceed 2.1x for 2 consecutive fiscal years. 2. The consolidated equity ratio at each consolidated fiscal year-end must not be below 20% for 2 consecutive fiscal years.」
The Company has disclosed additional financial covenants requiring that the D/E ratio not exceed 2.1x and the equity ratio not fall below 20% for 2 consecutive fiscal years, in addition to the previous requirements to maintain equity at 75% and avoid ordinary losses for 2 consecutive fiscal years. - FY2020RestatedAnnual report
「(a) Maintain equity on the unconsolidated and consolidated balance sheets at each fiscal year-end at no less than 75% of total equity at the end of the immediately preceding fiscal year.」
The financial covenants continue to include requirements to maintain equity at no less than 75% of the previous fiscal year's level and avoid ordinary losses for 2 consecutive fiscal years. - FY2018First statedAnnual report
「The Company must maintain equity on the unconsolidated and consolidated balance sheets at each fiscal year-end at no less than 75% of total equity at the end of the immediately preceding fiscal year, and must not record ordinary losses for 2 consecutive fiscal years in the unconsolidated and consolidated income statements at each fiscal year-end.」
The covenants for syndicated loans and other facilities require the Company to maintain equity at no less than 75% of the previous fiscal year's level and avoid ordinary losses for 2 consecutive fiscal years.