Risk of Reliance on Interest-Bearing Debt and Rising Interest Rates
First written in FY2019. 10 of 20 entries say "Mitigated", first in FY2021. Latest entry: 2026-09-10.
The whole theme swung hardest in 2020: 63 of 142 companies on the "Worse" side.
- FY2026-H1MitigatedAnnual report
「Non-current liabilities decreased by ¥115 million from the end of the previous fiscal year to ¥1,941 million. This was mainly due to a ¥117 million decrease in long-term borrowings.」
Non-current liabilities decreased by ¥115 million due to a decline in long-term borrowings. The risk associated with reliance on interest-bearing debt remains, but borrowings were trending downward. - FY2025-H1WorsenedAnnual report
「Non-current liabilities increased by ¥83 million from the end of the previous fiscal year to ¥1,856 million. This was mainly due to increases of ¥64 million in long-term borrowings and ¥12 million in lease obligations.」
Non-current liabilities increased by ¥83 million from the end of the previous fiscal year due to increases in long-term borrowings and lease obligations, indicating a deterioration in the Company's financial position regarding reliance on interest-bearing debt. - FY2024WorsenedAnnual report
「Interest-bearing debt, comprising borrowings, bonds and lease obligations, accounted for 41.1% of total assets at the end of the 57th fiscal year, a high level.」
Reliance on interest-bearing debt rose from 38.4% at the end of FY2023 to 41.1%. Long-term borrowings also increased by ¥193 million from the end of the previous fiscal year, indicating that reliance had begun to rise again. - FY2024-Q3WorsenedAnnual report
「Non-current liabilities increased by ¥120 million from the end of the previous fiscal year to ¥1,655 million. This was mainly due to increases of ¥58 million in long-term borrowings and ¥55 million in lease obligations.」
Non-current liabilities increased by ¥120 million from the end of the previous fiscal year due to increases in long-term borrowings and lease obligations, indicating a deterioration in the Company's financial position regarding reliance on interest-bearing debt and the risk of rising interest rates. The disclosure does not indicate that the risks themselves, such as rising interest rates or an inability to repay debt, have materialized. - FY2024-Q2WorsenedAnnual report
「Non-current liabilities increased by ¥152 million from the end of the previous fiscal year to ¥1,687 million. This was mainly due to increases of ¥110 million in long-term borrowings and ¥37 million in lease obligations.」
Long-term borrowings increased by ¥110 million from the end of the previous fiscal year, and non-current liabilities increased by ¥152 million. The Company's financial position regarding reliance on interest-bearing debt continued to deteriorate from the previous quarter. - FY2024-Q1WorsenedAnnual report
「Non-current liabilities increased by ¥173 million from the end of the previous fiscal year to ¥1,708 million. This was mainly due to a ¥165 million increase in long-term borrowings.」
Long-term borrowings increased by ¥165 million from the end of the previous fiscal year, and non-current liabilities increased by ¥173 million. The equity ratio declined from 36.7% at the end of the previous fiscal year to 34.0%, indicating a temporary deterioration in the Company's financial position related to reliance on interest-bearing debt. - FY2023MitigatedAnnual report
「Interest-bearing debt, comprising borrowings, bonds and lease obligations, accounted for 38.4% of total assets at the end of the 56th fiscal year, a high level.」
Reliance on interest-bearing debt declined from 46.8% at the end of FY2022 to 38.4%. While the Company repaid ¥503 million in long-term borrowings and redeemed ¥100 million in bonds, it continues to recognize that the level remains high. - FY2023-Q3MitigatedAnnual report
「Non-current liabilities decreased by ¥323 million from the end of the previous fiscal year to ¥1,582 million. This was mainly due to a ¥336 million decrease in long-term borrowings.」
Non-current liabilities decreased by ¥323 million due to a decline in long-term borrowings, while the equity ratio rose from 33.3% at the end of the previous fiscal year to 38.0%. The risk associated with reliance on interest-bearing debt remains, but financial indicators improved. - FY2023-Q2MitigatedAnnual report
「Cash decreased by ¥540 million as a result of financing activities, compared with a decrease of ¥109 million in the same period of the previous year. This was mainly due to ¥405 million in repayments of long-term borrowings and ¥100 million in bond redemptions.」
The Company repaid ¥405 million in long-term borrowings and redeemed ¥100 million in bonds. Non-current liabilities decreased by ¥280 million from the end of the previous fiscal year, while the equity ratio rose from 33.3% to 37.8%. - FY2023-Q1MitigatedAnnual report
「Non-current liabilities decreased by ¥239 million from the end of the previous fiscal year to ¥1,666 million. This was mainly due to a ¥232 million decrease in long-term borrowings.」
Non-current liabilities decreased by ¥239 million due to a decline in long-term borrowings, while the equity ratio rose from 33.3% at the end of the previous fiscal year to 36.4%. The risk associated with reliance on interest-bearing debt remains. - FY2022WorsenedAnnual report
「Interest-bearing debt, comprising borrowings, bonds and lease obligations, accounted for 46.8% of total assets at the end of the 55th fiscal year, a high level. If interest rates rise while the Company's reliance on interest-bearing debt remains high, this may affect the Company's financial condition and operating results.」
Reliance on interest-bearing debt rose from 44.6% at the end of FY2021 to 46.8%. The Company also raised ¥600 million in long-term borrowings and other funds for capital investment. - FY2022-Q3WorsenedAnnual report
「1. Borrowing amount: ¥500 million 2. Lender: Resona Bank, Limited 3. Borrowing date: 30 June 2022 (scheduled) 4. Borrowing term: 20 years 5. Interest rate (Note): Floating rate (base rate plus spread)」
As of the quarter-end, the equity ratio had improved from 35.0% to 38.6% due to a decrease in long-term borrowings and other liabilities. At the same time, the Company resolved to borrow ¥500 million over a 20-year term to finance the purchase of a property for a central kitchen. Although the borrowing bears a floating rate, the Company plans to fix the interest rate through an interest rate swap. - FY2022-Q2MitigatedAnnual report
「Non-current liabilities decreased by ¥199 million from the end of the previous fiscal year to ¥1,457 million. This was mainly due to decreases of ¥100 million in bonds and ¥71 million in long-term borrowings. As a result, the equity ratio was 37.4%, compared with 35.0% at the end of the previous fiscal year.」
Non-current liabilities decreased by ¥199 million due to declines in bonds and long-term borrowings, while the equity ratio rose from 35.0% to 37.4%. The risk associated with reliance on interest-bearing debt remains, but financial indicators continue to improve. - FY2022-Q1MitigatedAnnual report
「Non-current liabilities decreased by ¥205 million from the end of the previous fiscal year to ¥1,451 million. This was mainly due to decreases of ¥100 million in bonds and ¥87 million in long-term borrowings.」
Non-current liabilities decreased by ¥205 million due to declines in long-term borrowings and bonds, while the equity ratio rose from 35.0% at the end of the previous fiscal year to 36.6%. The risk associated with reliance on interest-bearing debt remains, but financial indicators have improved. - FY2021MitigatedAnnual report
「Interest-bearing debt, comprising borrowings, bonds and lease obligations, accounted for 44.6% of total assets at the end of the 54th fiscal year, a high level. If interest rates rise while the Company's reliance on interest-bearing debt remains high, this may affect the Company's financial condition and operating results.」
Reliance on interest-bearing debt declined from 48.9% at the end of the previous fiscal year to 44.6%. The Company continues to recognize that the level remains high. - FY2020WorsenedAnnual report
「Because the Company primarily finances store-opening costs, including store construction costs and security deposits, through borrowings from financial institutions and other means, interest-bearing debt, comprising borrowings, bonds and lease obligations, accounted for 48.9% of total assets at the end of the 53rd fiscal year, a high level.」
The interest-bearing debt ratio rose from 44.7% at the end of the previous fiscal year to 48.9%. The Company also raised ¥1 billion in long-term borrowings and ¥200 million through bonds in preparation for the prolonged impact of the infectious disease. - FY2020-Q3WorsenedAnnual report
「In preparation for the spread and prolonged duration of the novel coronavirus, the Company aims to maintain ample cash on hand and enhance the stability of its financial foundation.」
After the quarter-end, the Company drew down ¥1 billion in borrowings in preparation for the prolonged spread of the novel coronavirus, adding funding through interest-bearing debt. - FY2019First statedAnnual report
「Interest-bearing debt, comprising borrowings, bonds and lease obligations, accounted for 44.7% of total assets at the end of the 52nd fiscal year, a high level. If interest rates rise while the Company's reliance on interest-bearing debt remains high, this may affect the Company's financial condition and operating results.」
The Company primarily finances store-opening costs, including store construction costs and security deposits, through borrowings from financial institutions and other means.