Higher Financing Costs Due to Borrowing Dependence and Rising Interest Rates
First written in FY2020. 10 of 16 entries say "Mitigated", first in FY2022-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2020: 63 of 142 companies on the "Worse" side.
- FY2026Interest expense and loan fees increased despite a decline in outstanding borrowingsAnnual report
「Ordinary income declined by ¥790 million year on year to an ordinary loss of ¥709 million, due to foreign exchange losses, higher interest expenses and the recognition of syndicated loan fees in non-operating expenses.」
Although interest-bearing debt decreased, higher interest expenses and syndicated loan fees of ¥57.75 million were incurred, contributing to the ordinary loss. - FY2026-H1Working capital facility established through a syndicated loanAnnual report
「For the purpose of securing stable working capital, the company entered into a syndicated loan agreement on 30 September 2025 and drew down the funds on 17 October of the same year.」
To ensure stable access to working capital, the company entered into a syndicated loan agreement with multiple financial institutions and drew down the funds. The disclosure also states that long-term borrowings decreased while short-term borrowings increased. - FY2025MitigatedAnnual report
「At the end of the consolidated fiscal year, interest-bearing liabilities, including borrowings and lease obligations, stood at ¥3,195 million, while cash and cash equivalents stood at ¥2,002 million.」
Interest-bearing liabilities declined from ¥3,543 million at the end of the previous fiscal year to ¥3,195 million. Interest expense increased, but the balance of funding arising from borrowing dependence declined. - FY2025-H1MitigatedAnnual report
「Total liabilities were ¥6,314 million, a decrease of ¥694 million from the end of the previous consolidated fiscal year. This was mainly due to decreases of ¥367 million in notes and accounts payable, ¥102 million in long-term borrowings and ¥73 million in short-term borrowings.」
Total liabilities, long-term borrowings and short-term borrowings declined, partly reducing the funding risk arising from borrowing dependence. - FY2024-Q3MitigatedAnnual report
「Total liabilities were ¥6,643 million, down ¥437 million from the end of the previous consolidated fiscal year. This was mainly due to decreases of ¥322 million in notes and accounts payable, trade, and ¥242 million in long-term borrowings.」
Total liabilities and long-term borrowings declined from the end of the previous consolidated fiscal year, partly reducing the funding risk arising from borrowing dependence. The disclosure does not state that costs increased due to rising interest rates. - FY2024-Q2MitigatedAnnual report
「Total liabilities were ¥6,586 million, down ¥494 million from the end of the previous consolidated fiscal year. This was mainly due to decreases of ¥410 million in notes and accounts payable, trade, and ¥213 million in long-term borrowings.」
Total liabilities and long-term borrowings declined from the end of the previous consolidated fiscal year, partly reducing the funding risk arising from borrowing dependence. - FY2024-Q1MitigatedAnnual report
「Total liabilities were ¥6,248 million, down ¥832 million from the end of the previous consolidated fiscal year. This was mainly due to an ¥839 million decrease in notes and accounts payable, trade.」
Total liabilities declined from the end of the previous consolidated fiscal year, and long-term borrowings also declined from ¥2,335,992 thousand to ¥2,239,165 thousand. Short-term borrowings increased slightly, but the funding risk arising from borrowing dependence partly declined. - FY2023-Q3Total liabilities increase despite a decline in long-term borrowingsAnnual report
「Total liabilities were ¥7,406 million, an increase of ¥477 million from the end of the previous consolidated fiscal year. This was mainly due to an increase of ¥541 million in notes and accounts payable and a decrease of ¥122 million in long-term borrowings.」
Although long-term borrowings declined by ¥122 million, total liabilities increased due to higher notes and accounts payable. The disclosure does not state that borrowing costs increased due to rising interest rates. - FY2023-Q2MitigatedAnnual report
「Total liabilities were ¥6,772 million, down ¥155 million from the end of the previous consolidated fiscal year. This was mainly due to decreases of ¥99 million in notes and accounts payable, trade, ¥24 million in electronically recorded obligations, and ¥26 million in short-term borrowings.」
Total liabilities and short-term borrowings declined from the end of the previous consolidated fiscal year, partly reducing the funding risk arising from borrowing dependence. Long-term borrowings declined only slightly. - FY2022MitigatedAnnual report
「At the end of the current consolidated fiscal year, the balance of interest-bearing debt, including borrowings and lease obligations, was ¥3,856 million, while cash and cash equivalents amounted to ¥1,959 million.」
Interest-bearing liabilities declined from ¥4,333 million at the end of the previous fiscal year to ¥3,856 million, reducing the balance reflecting borrowing dependence. - FY2022-Q3MitigatedAnnual report
「Total liabilities amounted to ¥6,934 million, a decrease of ¥353 million from the end of the previous consolidated fiscal year. This was mainly due to a ¥157 million increase in electronically recorded obligations, a ¥411 million decrease in short-term borrowings, and a ¥74 million decrease in long-term borrowings.」
Total liabilities, short-term borrowings and long-term borrowings declined from the end of the previous fiscal year, partly reducing the funding risk arising from borrowing dependence. - FY2022-Q2MitigatedAnnual report
「Total liabilities amounted to ¥6,716 million, a decrease of ¥571 million from the end of the previous consolidated fiscal year. This was mainly due to a ¥176 million decrease in notes and accounts payable and a ¥344 million decrease in short-term borrowings.」
Total liabilities and short-term borrowings declined from the end of the previous consolidated fiscal year, partly reducing the funding risk arising from borrowing dependence. Long-term borrowings edged up, and the change in the borrowing mix remains. - FY2022-Q1MitigatedAnnual report
「Total liabilities were ¥6,790 million, a decrease of ¥498 million from the end of the previous consolidated fiscal year. This was mainly due to decreases of ¥135 million in notes and accounts payable and ¥324 million in short-term borrowings.」
Total liabilities and short-term borrowings declined from the end of the previous consolidated fiscal year, partly reducing the funding risk arising from borrowing dependence. Long-term borrowings increased, resulting in a change in the borrowing mix. - FY2021Increase in Interest-Bearing DebtAnnual report
「At the end of the fiscal year, interest-bearing liabilities, including borrowings and lease obligations, stood at ¥4,333 million, while cash and cash equivalents stood at ¥2,424 million.」
Interest-bearing liabilities increased from approximately ¥3,597 million at the end of the previous fiscal year to approximately ¥4,333 million. Although the disclosure does not state that borrowing costs increased, the balance reflecting borrowing dependence increased. - FY2021-Q3Increase in long-term borrowingsAnnual report
「Total liabilities were ¥7,036 million, a decrease of ¥464 million from the end of the previous consolidated fiscal year. This was mainly due to an increase of ¥657 million in long-term borrowings, together with decreases of ¥759 million in notes and accounts payable and ¥82 million in short-term borrowings.」
Although total liabilities declined, long-term borrowings increased by ¥657 million, resulting in a change in the borrowing mix. The disclosure does not state that borrowing costs increased due to rising interest rates. - FY2020First statedAnnual report
「Borrowing costs may rise due to the government's interest-rate policies, a deterioration in the creditworthiness of the group and other factors.」
Based on a structure in which working capital and funds for capital expenditures are mainly financed through borrowings from financial institutions, the risk of higher borrowing costs due to interest-rate policies and a deterioration in creditworthiness is described independently for the first time.