Risk of Higher Interest Rates on Variable-Rate Borrowings
First written in FY2021. 1 of 4 entries say "Mitigated", first in FY2022. Latest entry: FY2026.
The whole theme swung hardest in 2025: 31 of 96 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「As of 31 March 2026, floating-rate borrowings accounted for 71.3% of total borrowings. Assuming that all risk variables other than interest rates remain constant, we determined that if the benchmark interest rate rose by 0.1%, income before income taxes would decrease by ¥7 million, while a 0.1% decline would increase it by ¥7 million.」
The proportion of floating-rate borrowings increased from 53.9% to 71.3%, and sensitivity of income before income taxes to a 0.1% interest-rate change also increased from ¥3 million to ¥7 million. - FY2025Higher proportion of floating-rate borrowings and lower sensitivityAnnual report
「As of 31 March 2025, floating-rate borrowings accounted for 53.9% of total borrowings. Assuming that all risk variables other than interest rates remain constant, we determined that if the benchmark interest rate rose by 0.1%, income before income taxes would decrease by ¥3 million, while a 0.1% decline would increase it by ¥3 million.」
The proportion of floating-rate borrowings increased slightly from 52.8% to 53.9%, while sensitivity of income before income taxes to a 0.1% interest-rate change declined from ¥4 million to ¥3 million. - FY2022MitigatedAnnual report
「As of 31 March 2022, floating-rate borrowings accounted for 52.8% of total borrowings. Assuming that all risk variables other than interest rates remain constant, we determined that if the benchmark interest rate rose by 0.1%, income before income taxes would decrease by ¥4 million, while a 0.1% decline would increase it by ¥4 million.」
The proportion of floating-rate borrowings declined from 70.0% to 52.8%, while sensitivity of income before income taxes to a 0.1% interest-rate change declined from ¥10 million to ¥4 million. - FY2021First statedAnnual report
「As of 31 March 2021, floating-rate borrowings accounted for 70.0% of total borrowings. Assuming that all risk variables other than interest rates remain constant, we determined that if the benchmark interest rate rose by 0.1% as of 31 March 2021, income before income taxes would decrease by ¥10 million, while a 0.1% decline would increase it by ¥10 million.」
Floating-rate borrowings accounted for 70.0% of total borrowings, and the company disclosed that a 0.1% change in interest rates would change income before income taxes by ¥10 million.