Liquidity Risk Management Through Cash Flow Planning and Readily Available Liquidity
First written in FY2017. 13 of 29 entries say "Worsened", first in FY2020. Latest entry: FY2027-H1.
Tokyo Board Industries moved to the "Worse" side of this theme in 2020, 4 years before the typical company in this theme (2024).
12 other companies' latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「Cash generated by operating activities during the six-month interim consolidated accounting period amounted to ¥365.276 million (compared with cash used of ¥35.471 million in the same period of the previous year). At the end of the six-month interim consolidated accounting period, interest-bearing debt stood at ¥2,133.842 million, a high level compared with on-hand liquidity of ¥1,101.525 million in cash and cash equivalents. The company continues to request support from its relationship banks on the premise of implementing management improvements.」
Operating cash flow turned from a decrease of ¥35.471 million in the same period of the previous year to an increase of ¥365.276 million, while interest-bearing debt decreased from ¥7,409.396 million at the end of the previous fiscal year to ¥2,133.842 million, indicating an improvement in liquidity. However, interest-bearing debt remained above on-hand liquidity, and requests for support from financial institutions continued. - FY2026WorsenedAnnual report
「Interest-bearing debt stood at a high level of ¥7,409.396 million at the end of the current consolidated fiscal year, comprising short-term borrowings of ¥256.265 million, current portions of long-term borrowings of ¥6,227.512 million, and long-term borrowings of ¥925.618 million, compared with on-hand liquidity of ¥1,171.854 million in cash and cash equivalents. The company continues to request support from its relationship banks on the premise of implementing management improvements.」
On-hand liquidity amounted to ¥1,171.854 million against interest-bearing debt of ¥7,409.396 million, and cash and cash equivalents decreased by ¥605.025 million from the end of the previous fiscal year. Requests for support from financial institutions are continuing, and liquidity risk has deteriorated. - FY2026-H1WorsenedAnnual report
「Cash used in operating activities during the six-month interim consolidated accounting period amounted to ¥35.471 million (compared with cash generated of ¥1,111.876 million in the same period of the previous year).」
Operating cash flow turned from an increase of ¥1,111.876 million in the same period of the previous year to a decrease of ¥35.471 million, and cash and cash equivalents decreased by ¥646.062 million from the end of the previous fiscal year to ¥1,130.817 million. Interest-bearing debt continued to exceed on-hand liquidity. - FY2025-H1MitigatedAnnual report
「Cash generated by operating activities during the six-month interim consolidated accounting period amounted to ¥1,111.876 million (compared with cash used of ¥161.000 million in the same period of the previous year).」
Operating cash flow turned from a decrease of ¥161.000 million in the same period of the previous year to an increase of ¥1,111.876 million, and cash and cash equivalents increased by ¥539.144 million from the end of the previous fiscal year to ¥2,144.213 million. Interest-bearing debt remained above on-hand liquidity, and requests for support from financial institutions continued. - FY2024WorsenedAnnual report
「Based on reports from each division, the group's administrative division prepares and updates cash flow plans in a timely manner and manages liquidity risk by maintaining on-hand liquidity and through other measures. Interest-bearing debt amounted to ¥7,452.798 million at the end of the current consolidated fiscal year. Cash and cash equivalents amounted to ¥1,605.069 million at the end of the current consolidated fiscal year.」
Although the management approach of preparing and updating cash flow plans and maintaining on-hand liquidity continues, cash and cash equivalents decreased by ¥909.966 million from the end of the previous fiscal year to ¥1,605.069 million, leaving a continued gap relative to interest-bearing debt of ¥7,452.798 million. Cash flow from operating activities also decreased by ¥350.022 million. - FY2024-Q3WorsenedAnnual report
「Interest-bearing debt stood at a high level of ¥7,452.798 million at the end of the third quarter of the current consolidated fiscal year, comprising short-term borrowings of ¥257.039 million, current portions of long-term borrowings of ¥4,730.588 million, and long-term borrowings of ¥2,465.170 million, compared with on-hand liquidity of ¥1,974.985 million in cash and deposits. The company continues to request support from its relationship banks on the premise of implementing management improvements.」
Cash and deposits amounted to ¥1,974.985 million against interest-bearing debt of ¥7,452.798 million, a decrease of ¥540.051 million from the end of the previous consolidated fiscal year. Interest-bearing debt exceeds on-hand liquidity, and requests for support from financial institutions are continuing. - FY2024-Q2WorsenedAnnual report
「Interest-bearing debt stood at a high level of ¥7,462.798 million at the end of the second quarter of the current consolidated fiscal year, comprising short-term borrowings of ¥257.039 million, current portions of long-term borrowings of ¥4,705.888 million, and long-term borrowings of ¥2,499.870 million, compared with on-hand liquidity of ¥2,187.069 million in cash and deposits. The company continues to request support from its relationship banks on the premise of implementing management improvements.」
Cash and deposits amounted to ¥2,187.069 million against interest-bearing debt of ¥7,462.798 million, a decrease of ¥327.967 million from the end of the previous consolidated fiscal year. Cash flow from operating activities also turned from an increase of ¥389.745 million in the same period of the previous year to a decrease of ¥161.000 million, indicating a deterioration in liquidity risk. - FY2024-Q1WorsenedAnnual report
「In addition, interest-bearing debt stood at a high level of ¥7,462.798 million at the end of the first quarter of the current consolidated fiscal year, comprising short-term borrowings of ¥257.039 million, current portions of long-term borrowings of ¥3,417.036 million, and long-term borrowings of ¥3,788.723 million, compared with on-hand liquidity of ¥2,429.895 million in cash and deposits. The company continues to request support from its relationship banks on the premise of implementing management improvements.」
Interest-bearing debt amounted to ¥7,462.798 million, while cash and deposits amounted to ¥2,429.895 million, a decrease of ¥85.140 million from the end of the previous fiscal year. Liquidity risk has deteriorated because interest-bearing debt exceeds on-hand liquidity and requests for support from financial institutions are continuing. - FY2023MitigatedAnnual report
「As a result of operating activities, cash increased by ¥1,076.605 million (compared with an increase of ¥1,199.595 million in the same period of the previous year).」
Cash flow from operating activities increased by ¥1,076.605 million, and cash and cash equivalents increased by ¥725.696 million from the end of the previous fiscal year to ¥2,515.036 million. Liquidity improved, although interest-bearing debt remained high. - FY2023-Q3MitigatedAnnual report
「The main factors were a ¥679.716 million increase in cash and deposits, a ¥494.826 million increase in notes and accounts receivable, and a ¥236.844 million increase in merchandise and finished goods, despite an ¥841.416 million decrease in property, plant and equipment, mainly due to depreciation.」
Cash and deposits increased by ¥679.716 million from the end of the previous consolidated fiscal year, bringing funds on hand to ¥2,469.056 million. However, interest-bearing debt of ¥7,472.798 million continued to exceed on-hand liquidity. - FY2023-Q2MitigatedAnnual report
「Cash generated by operating activities during the six-month period ended 30 September amounted to ¥389.745 million (compared with an increase of ¥129.097 million in the same period of the previous year).」
Operating cash flow increased from ¥129.097 million in the same period of the previous year to ¥389.745 million, and cash and cash equivalents increased by ¥242.712 million from the end of the previous consolidated fiscal year to ¥2,032.052 million. Liquidity improved, although on-hand liquidity remained below interest-bearing debt. - FY2023-Q1WorsenedAnnual report
「However, interest-bearing debt stood at a high level of ¥7,482.798 million at the end of the first quarter of the current consolidated fiscal year, comprising short-term borrowings of ¥257.039 million, current portions of long-term borrowings of ¥2,425.048 million, and long-term borrowings of ¥4,800.710 million, compared with on-hand liquidity of ¥1,772.358 million in cash and deposits. The company continues to request support from its relationship banks on the premise of implementing management improvements.」
While operating performance recovered, interest-bearing debt of ¥7,482.798 million remained high compared with cash and deposits of ¥1,772.358 million, indicating a liquidity position requiring continued requests for support from financial institutions. - FY2022MitigatedAnnual report
「Based on reports from each division, the Group's administrative division prepares and updates cash-flow plans in a timely manner and manages liquidity risk by maintaining cash on hand and other measures.」
While the policy of managing cash flow through cash flow planning and maintaining on-hand liquidity remains in place, operating cash flow turned from a decrease of ¥1,846.127 million in the previous fiscal year to an increase of ¥1,199.595 million, and cash and cash equivalents also increased to ¥1,789.340 million. - FY2022-Q3Increase in Cash and DepositsAnnual report
「Assets amounted to ¥13,687.908 million at the end of the third quarter of the current consolidated fiscal year, a decrease of ¥1,493.469 million from the end of the previous consolidated fiscal year. The main factors were a ¥1,079.029 million decrease in accrued income tax refunds following the receipt of refunds, a ¥931.466 million decrease in property, plant and equipment, mainly due to depreciation, and a ¥959.783 million increase in cash and deposits.」
Total assets decreased by ¥1,493.469 million, while cash and deposits increased by ¥959.783 million. The receipt of income tax refunds is cited as a factor behind the increase. - FY2022-Q2MitigatedAnnual report
「Cash generated by operating activities during the six-month period ended 30 September amounted to ¥129.097 million (compared with cash used of ¥1,769.562 million in the same period of the previous year).」
Operating cash flow turned from an outflow of ¥1,769.562 million in the same period of the previous year to an inflow of ¥129.097 million, indicating an improvement in cash flow. Meanwhile, cash and cash equivalents decreased by ¥125.781 million from the beginning of the period. - FY2021WorsenedAnnual report
「Cash and cash equivalents (hereinafter, “funds”) at the end of the current consolidated fiscal year decreased by ¥1,846.127 million through operating activities, by ¥489.356 million through investing activities, and by ¥85.345 million through financing activities. As a result, funds decreased by ¥2,420.829 million from the end of the previous consolidated fiscal year to ¥1,505.626 million at the end of the current consolidated fiscal year.」
Funds decreased through operating, investing, and financing activities, and cash and cash equivalents decreased by ¥2,420.829 million to ¥1,505.626 million. Cash flow risk has deteriorated, as reflected in the figures. - FY2021-Q3WorsenedAnnual report
「Assets amounted to ¥15,582.479 million at the end of the third quarter of the current consolidated fiscal year, a decrease of ¥3,215.952 million from the end of the previous consolidated fiscal year. The main factor was a ¥2,327.109 million decrease in cash and deposits, mainly due to payments of income taxes payable and other items. In addition, because funding is needed to cover the shortfall against the sales plan, discussions with the company's relationship banks and other parties are continuing regarding additional financing and measures to stabilize cash flow, in addition to the measures described above.」
Cash and deposits decreased by ¥2,327.109 million from the end of the previous consolidated fiscal year, while total assets decreased by ¥3,215.952 million. Discussions with financial institutions regarding additional financing to address the shortfall against the sales plan are also continuing. - FY2021-Q2WorsenedAnnual report
「Cash used in operating activities during the six-month period ended 30 September amounted to ¥1,769.562 million (compared with cash used of ¥1,289.635 million in the same period of the previous year).」
The operating cash flow deficit widened from the same period of the previous year, while cash and cash equivalents also decreased by ¥2,148.478 million from the beginning of the period. The need for additional financing and cash flow stabilization in response to the shortfall against the sales plan remains. - FY2020WorsenedAnnual report
「As a result of operating activities, cash decreased by ¥2,040.900 million (compared with an increase of ¥1,146.232 million in the same period of the previous year).」
Operating cash flow turned from an inflow of ¥1,146.232 million to an outflow of ¥2,040.900 million. Discussions with financial institutions regarding additional financing and cash flow stabilization to address the shortfall against the sales plan are also continuing. - FY2020-Q3RestatedAnnual report
「In addition, because funding is needed to cover the shortfall against the sales plan caused by the delay in the full-scale operation of the Sakura Plant, the company is strengthening its sales activities to increase revenue and is holding discussions with its relationship banks and other parties regarding additional financing and measures to stabilize its cash flow.」
Measures to address the shortfall against the sales plan, including strengthening sales activities, raising additional financing, and stabilizing cash flow through discussions with financial institutions, remain under way. - FY2020-Q2RestatedAnnual report
「In addition, because funding is needed to cover the shortfall against the sales plan caused by the delay in the full-scale operation of the Sakura Plant, the company is strengthening its sales activities to increase revenue and is holding discussions with its relationship banks and other parties regarding additional financing and measures to stabilize its cash flow.」
Measures to increase sales, raise additional financing, and stabilize cash flow through discussions with financial institutions are under way. - FY2019RestatedAnnual report
「Based on reports from each division, the Group's administrative division prepares and updates cash-flow plans in a timely manner and manages liquidity risk by maintaining cash on hand and other measures.」
The Group continues to manage liquidity risk through timely updates to cash-flow plans and maintaining cash on hand. Cash and cash equivalents at the fiscal year-end were stated to be ¥3,512.371 million. - FY2018RestatedAnnual report
「Based on reports from each division, the Group's administrative division prepares and updates cash-flow plans in a timely manner and manages liquidity risk by maintaining cash on hand and other measures.」
The Group continues to manage liquidity risk through timely updates to cash-flow plans and maintaining cash on hand. - FY2018-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The Company concluded that there had been no material change in liquidity risk management through cash-flow plans and cash on hand. - FY2017First statedAnnual report
「Based on reports from each division, the Group's administrative division prepares and updates cash-flow plans in a timely manner and manages liquidity risk by maintaining cash on hand and other measures.」
The method of managing the liquidity risk of being unable to make payments when due through timely updates to cash-flow plans and maintaining cash on hand was identified separately for the first time.