Reliance on Interest-Bearing Debt and the Risk of Higher Financing Costs
First written in FY2018. 22 of 24 entries say "Worsened", first in FY2020-Q3. Latest entry: 2026-07-10.
The whole theme swung hardest in 2020: 63 of 142 companies on the "Worse" side.
- FY2026-H1WorsenedAnnual report
「Total current liabilities at the end of the six-month period increased by ¥9,325 million from the end of the previous consolidated fiscal year to ¥22,247 million. This was mainly due to an increase of ¥2,400 million in short-term borrowings to maintain liquidity and an increase of ¥6,237 million in long-term borrowings due for repayment within one year, transferred from non-current liabilities because their repayment dates fall within one year.」
Short-term borrowings and long-term borrowings due for repayment within one year increased to maintain liquidity and fund product procurement, increasing reliance on current liabilities. - FY2025WorsenedAnnual report
「As of the end of the fiscal year ended August 2025, interest-bearing debt, including lease obligations, was ¥18,502 million, representing an interest-bearing debt ratio (note) of 251.3%.」
Interest-bearing debt increased from ¥15,260 million in the previous fiscal year to ¥18,502 million, while the interest-bearing debt ratio rose from 179.8% to 251.3%. - FY2025-H1WorsenedAnnual report
「Total current liabilities at the end of the six-month period increased by ¥2,084 million from the end of the previous consolidated fiscal year to ¥12,296 million. This was mainly due to an increase of ¥1,900 million in short-term borrowings accompanying product procurement.」
Short-term borrowings increased by ¥1,900 million accompanying product procurement, increasing current liabilities and total liabilities. - FY2024-Q3Decrease in short-term borrowings and increase in long-term borrowingsAnnual report
「Total current liabilities at the end of the third quarter of the current consolidated fiscal year decreased by ¥3,610 million from the end of the previous consolidated fiscal year to ¥11,211 million. This was mainly due to a ¥3,401 million decrease in short-term borrowings. Total non-current liabilities increased by ¥6,201 million from the end of the previous consolidated fiscal year to ¥10,220 million. This was mainly due to a ¥6,285 million increase in long-term borrowings. As a result, total liabilities increased by ¥2,590 million from the end of the previous consolidated fiscal year to ¥21,431 million.」
While short-term borrowings decreased, long-term borrowings increased by ¥6,285 million, bringing total liabilities to ¥21,431 million. - FY2024-Q2WorsenedAnnual report
「Total non-current liabilities increased by ¥6,169 million from the end of the previous consolidated fiscal year to ¥10,188 million. This was mainly due to an increase of ¥6,144 million in long-term borrowings. As a result, total liabilities increased by ¥4,929 million from the end of the previous consolidated fiscal year to ¥23,770 million.」
Non-current liabilities and total liabilities increased due to higher long-term borrowings, further increasing exposure to borrowings and financing. - FY2024-Q1WorsenedAnnual report
「Total current liabilities at the end of the first quarter of the current consolidated fiscal year increased by ¥3,739 million from the end of the previous consolidated fiscal year to ¥18,561 million. This was mainly due to an increase of ¥3,598 million in short-term borrowings.」
Short-term borrowings increased by ¥3,598 million, bringing current liabilities to ¥18,561 million and total liabilities to ¥22,370 million. Reliance on borrowings and liabilities has increased further. - FY2023WorsenedAnnual report
「As of the end of the fiscal year ended August 2023, interest-bearing debt, including lease obligations, was ¥15,260 million, representing an interest-bearing debt ratio (note) of 179.8%.」
Interest-bearing debt was ¥15,260 million and the interest-bearing debt ratio was 179.8%, quantifying reliance on borrowings. - FY2023-Q3WorsenedAnnual report
「Total current liabilities increased by ¥1,544 million from the end of the previous consolidated fiscal year to ¥15,864 million, due to increases of ¥498 million in short-term borrowings through financing, ¥200 million in bonds due for redemption within one year and ¥463 million in long-term borrowings due for repayment within one year, as well as an increase in other current liabilities, including accrued expenses arising from a rent-free agreement for the new office. Total non-current liabilities increased by ¥3,362 million from the end of the previous consolidated fiscal year to ¥4,437 million, mainly due to increases of ¥700 million in bonds and ¥2,327 million in long-term borrowings. As a result, total liabilities increased by ¥4,906 million from the end of the previous consolidated fiscal year to ¥20,301 million.」
Total liabilities increased to ¥20,301 million due to increases in short-term borrowings, bonds and long-term borrowings. - FY2023-Q2WorsenedAnnual report
「Total non-current liabilities increased by ¥2,694 million from the end of the previous consolidated fiscal year to ¥3,770 million, mainly due to increases of ¥868 million in bonds and ¥1,513 million in long-term borrowings. As a result, total liabilities increased by ¥3,785 million from the end of the previous consolidated fiscal year to ¥19,181 million.」
Non-current liabilities increased due to increases in bonds and long-term borrowings, bringing total liabilities to ¥19,181 million. - FY2023-Q1WorsenedAnnual report
「Non-current liabilities increased by ¥1,546 million from the end of the previous consolidated fiscal year to ¥2,621 million, mainly due to increases of ¥800 million in bonds and ¥665 million in long-term borrowings. As a result, liabilities increased by ¥1,900 million from the end of the previous consolidated fiscal year to ¥17,295 million.」
Non-current liabilities increased due to increases in bonds and long-term borrowings, bringing liabilities to ¥17,295 million. Exposure to financing is expanding. - FY2022WorsenedAnnual report
「Current liabilities at the end of the consolidated fiscal year increased by ¥4,018 million from the end of the previous consolidated fiscal year to ¥14,320 million, mainly due to an increase of ¥3,560 million in short-term borrowings accompanying increased procurement and other factors.」
Short-term borrowings increased by ¥3,560 million accompanying increased procurement and other factors, bringing liabilities to ¥15,395 million. Exposure to borrowings and financing costs is increasing. - FY2022-Q3WorsenedAnnual report
「Current liabilities at the end of the third quarter of the current consolidated fiscal year increased by ¥3,514 million from the end of the previous consolidated fiscal year to ¥13,816 million, mainly due to an increase of ¥3,259 million in short-term borrowings accompanying increased procurement and other factors, and an increase of ¥114 million in accounts payable.」
Short-term borrowings increased by ¥3,259 million accompanying increased procurement and other factors, bringing current liabilities to ¥13,816 million and total liabilities to ¥15,045 million. Reliance on borrowings and liabilities is increasing. - FY2022-Q2WorsenedAnnual report
「This was mainly because short-term borrowings increased by ¥2,659 million to secure funds for procurement and other purposes, despite decreases of ¥86 million in long-term borrowings due within one year as a result of repayments and ¥104 million in accrued income taxes and other taxes.」
Short-term borrowings increased by ¥2,659 million to secure funds for procurement and other purposes, bringing liabilities to ¥13,812 million. Reliance on borrowings and liabilities is increasing. - FY2022-Q1WorsenedAnnual report
「Current liabilities at the end of the first quarter of the current consolidated fiscal year increased by ¥2,028 million from the end of the previous consolidated fiscal year to ¥12,330 million, despite a ¥166 million decrease in accrued income taxes and other taxes due to tax payments, mainly because short-term borrowings increased by ¥2,259 million to secure funds for procurement and other purposes.」
Short-term borrowings increased by ¥2,259 million to secure funds for procurement and other purposes, bringing current liabilities to ¥12,330 million and total liabilities to ¥13,440 million. Reliance on borrowings and liabilities has increased further. - FY2021WorsenedAnnual report
「Current liabilities at the end of the consolidated fiscal year increased by ¥2,656 million from the end of the previous consolidated fiscal year to ¥10,301 million, due mainly to a ¥1,997 million increase in short-term borrowings resulting from expanded procurement accompanying the increase in purchasing stores and a ¥121 million increase in the provision for bonuses, despite a ¥130 million decrease in long-term borrowings due within one year and other factors.」
Short-term borrowings increased by ¥1,997 million as procurement expanded, bringing total liabilities to ¥11,457 million. Reliance on borrowings and liabilities continues. - FY2021-Q3WorsenedAnnual report
「Current liabilities at the end of the third quarter of the current consolidated fiscal year increased by ¥3,112 million from the end of the previous consolidated fiscal year to ¥10,758 million, mainly due to an increase of ¥2,708 million in short-term borrowings to fund business expansion, including increased procurement, and an increase of ¥184 million in the provision for bonuses.」
Short-term borrowings increased by ¥2,708 million to fund business expansion and increased procurement, bringing liabilities to ¥11,875 million. Reliance on borrowings and liabilities has increased further. - FY2021-Q2WorsenedAnnual report
「Current liabilities at the end of the second quarter of the current consolidated fiscal year increased by ¥3,171 million from the end of the previous consolidated fiscal year to ¥10,817 million, mainly due to an increase of ¥2,425 million in short-term borrowings to fund business expansion, including increased procurement, and an increase of ¥121 million in accrued income taxes and other taxes.」
Short-term borrowings increased by ¥2,425 million to secure funds for procurement accompanying business expansion, increasing reliance on borrowings and liabilities. - FY2021-Q1WorsenedAnnual report
「Current liabilities at the end of the first quarter of the current consolidated fiscal year increased by ¥2,210 million from the end of the previous consolidated fiscal year to ¥9,856 million, mainly due to increases of ¥1,610 million in short-term borrowings to secure funds for procurement and other purposes, ¥161 million in the provision for bonuses and ¥102 million in accrued income taxes and other taxes.」
Short-term borrowings increased by ¥1,610 million to secure funds for procurement and other purposes, and total liabilities amounted to ¥10,938 million. Exposure to financing risk associated with reliance on borrowings is increasing. - FY2020WorsenedAnnual report
「Liabilities increased by ¥1,226 million from the end of the previous consolidated fiscal year to ¥8,642 million, mainly due to an increase of ¥1,903 million in short-term borrowings to fund expanded procurement accompanying the increase in the number of purchasing stores and stabilize company operations.」
Short-term borrowings increased by ¥1,903 million during the consolidated fiscal year, bringing total liabilities to ¥8,642 million. The risks of financing and rising interest rates associated with reliance on borrowings continue to exist. - FY2020-Q3WorsenedAnnual report
「Liabilities increased by ¥3,592.040 million from the end of the previous consolidated fiscal year to ¥11,008.385 million, mainly due to an increase of ¥4,497.092 million in short-term borrowings to offset the decline in sales revenue caused by the COVID-19 pandemic and stabilize company operations and product procurement.」
Short-term borrowings increased in response to the decline in sales revenue caused by COVID-19, strengthening reliance on interest-bearing debt and liabilities. - FY2019RestatedAnnual report
「Interest-bearing debt represented 38.5% of total assets at the end of the fiscal year ended August 2019. Accordingly, if changes in financial conditions or other factors prevent the Company from obtaining financing as planned, its business development and other activities may be affected.」
The 38.5% reliance on interest-bearing debt and the risks of an inability to obtain financing and rising interest rates affecting operating performance continue to be disclosed. - FY2018First statedAnnual report
「The Group relies on borrowings and other financing from financial institutions for much of its working capital, and interest-bearing debt represented 38.5% of total assets at the end of the fiscal year ended August 2018.」
Reliance on borrowings and other financing was quantified at 38.5% of total assets, and the impact on operating performance of an inability to obtain financing or rising interest rates was explicitly identified for the first time.