Funding Risks from Reliance on Borrowing and Interest-Rate Fluctuations
First written in FY2016. 3 of 7 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2020: 63 of 142 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「The cash flow-to-borrowings ratio (annual) was 0.1, and the interest coverage ratio was 222.4x.」
It states that the balance of borrowings declined due to repayments and other factors, improving the borrowings-to-operating cash flow ratio and the interest coverage metric. - FY2023MitigatedAnnual report
「To mitigate the impact of interest rate fluctuations, the group raises a certain amount of funds at long-term fixed interest rates as circumstances warrant. It also maintains close exchanges of information with its lending financial institutions, builds mutual trust and studies funding methods other than bank financing. In addition, it works to understand changes in the financial environment and implement stable and efficient cash management.」
In addition to long-term fixed-rate financing and other measures, understanding the financial environment and maintaining stable and efficient cash management are disclosed as responses. - FY2022MitigatedAnnual report
「To mitigate the impact of interest rate fluctuations, the group raises a certain amount of funds at long-term fixed interest rates as circumstances warrant. It also maintains close exchanges of information with its lending financial institutions, builds mutual trust and studies funding methods other than bank financing.」
Specific measures against reliance on borrowings and interest rate risk were disclosed, including long-term fixed-rate financing, information exchanges with financial institutions and research into funding methods other than bank financing. - FY2019RestatedAnnual report
「The group primarily obtains financing through borrowings from financial institutions. However, if deterioration in the consumer environment or intensified competition creates uncertainty about the group's medium- to long-term management plans, or if interest rates fluctuate sharply, the group's business results, financial condition and ability to obtain financing may be adversely affected.」
The risks of funding due to reliance on borrowings, uncertainty about medium- to long-term plans and sharp interest rate fluctuations are reiterated. - FY2018RestatedAnnual report
「The group primarily obtains financing through borrowings from financial institutions. However, if deterioration in the consumer environment or intensified competition creates uncertainty about the group's medium- to long-term management plans, or if interest rates fluctuate sharply, the group's business results, financial condition and ability to obtain financing may be adversely affected.」
The risks of funding due to reliance on borrowings, uncertainty about medium- to long-term plans and sharp interest rate fluctuations are reiterated. - FY2017RestatedAnnual report
「The group primarily obtains financing through borrowings from financial institutions. However, if deterioration in the consumer environment or intensified competition creates uncertainty about the group's medium- to long-term management plans, or if interest rates fluctuate sharply, the group's business results, financial condition and ability to obtain financing may be adversely affected.」
The risks of funding due to reliance on borrowings, uncertainty about medium- to long-term plans and sharp interest rate fluctuations are reiterated. - FY2016First statedAnnual report
「The group primarily obtains financing through borrowings from financial institutions. However, if deterioration in the consumer environment or intensified competition creates uncertainty about the group's medium- to long-term management plans, or if interest rates fluctuate sharply, the group's business results, financial condition and ability to obtain financing may be adversely affected.」
Reliance on borrowing is assumed, with uncertainty about management plans and sharp interest rate fluctuations identified as risks.