Risks from Substantial Borrowings, Financial Covenants and Rising Interest Rates
First written in FY2023. 2 of 3 entries say "Mitigated", first in FY2024. Latest entry: FY2025.
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
52 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「The Group has entered into borrowing agreements with financial institutions as lenders and has borrowings. At the end of the fiscal year ended October 2025, borrowings represented 19.8% of total assets. The company will work to reduce borrowings going forward.」
The ratio of borrowings to total assets declined from 23.6% in the previous fiscal year to 19.8%, and the balance of borrowings also decreased. Meanwhile, the risks associated with variable interest rates and financial covenants continue to be disclosed. - FY2024MitigatedAnnual report
「The Group has entered into borrowing agreements with financial institutions as lenders and has borrowings. At the end of the fiscal year ended October 2024, borrowings represented 23.6% of total assets. The ¥2 billion drawn amount under the commitment line established under the syndicated loan agreement is due for repayment on 31 October 2025.」
The ratio of borrowings to total assets declined from 27.9% in the previous fiscal year to 23.6%. Meanwhile, the ¥2 billion commitment line was extended for one year and refinanced on 31 October 2024. - FY2023First statedAnnual report
「The Group has entered into borrowing agreements with financial institutions as lenders and has significant borrowings. At the end of the fiscal year ended October 2023, borrowings represented 27.9% of total assets.」
The company identifies the ratio of borrowings to total assets, the ¥2 billion commitment line, financial covenants and the impact of rising variable interest rates as risks.