Risks of Reliance on External Debt and Interest Rate Fluctuations
First written in FY2016. 7 of 17 entries say "Worsened", first in FY2020. Latest entry: FY2026.
The whole theme swung hardest in 2020: 63 of 142 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「Cash and cash equivalents at the end of the current consolidated fiscal year decreased by ¥806 million from the end of the previous consolidated fiscal year to ¥10,377 million, mainly because funds from investing and financing activities decreased. Debt repayment period (years) 0.2 Interest coverage ratio (times) 263.1」
The balance of borrowings decreased to ¥81 million in short-term borrowings and ¥271 million in long-term borrowings. The Group disclosed a debt repayment period of 0.2 years and an interest coverage ratio of 263.1 times. Exposure to external debt dependence and interest expense burden is low. - FY2025MitigatedAnnual report
「Debt repayment period (years) 0.5 Interest coverage ratio (times) 229.0」
Operating cash flow was ¥1,204 million, and the Group disclosed a debt repayment period of 0.5 years and an interest coverage ratio of 229.0 times. Financial indicators relating to external debt dependence and interest expense burden improved from the previous fiscal year. - FY2023MitigatedAnnual report
「Following the transfer on 31 March 2023 of the trust beneficial interests in the land and buildings of RIHGA Royal Hotel Osaka, borrowings were repaid in full.」
Financial exposure relating to external debt dependence and interest rate fluctuation risk was significantly reduced following the full repayment of borrowings associated with the transfer of the Osaka hotel assets. - FY2023-Q3Full Repayment Plan DisclosedAnnual report
「本譲渡後、当社は金融機関からの借入を全額返済するとともに、Ｂ種及びＣ種優先株式の全額償還を行います。」
Although borrowings at the end of the third quarter had not been significantly reduced from the end of the previous fiscal year due to an increase in short-term borrowings and other factors, a plan was presented to repay all borrowings after the transfer of the Osaka hotel assets. - FY2023-Q2WorsenedAnnual report
「This was mainly due to a ¥400 million increase in borrowings, among other factors.」
Borrowings increased by ¥400 million, and financial exposure relating to dependence on external debt expanded again. - FY2023-Q1MitigatedAnnual report
「This was mainly due to a ¥350 million decrease in borrowings through repayment, among other factors.」
Borrowings decreased by ¥350 million through repayment, temporarily reducing dependence on external debt. No material change regarding the financial covenants was disclosed in this quarterly report. - FY2022Decrease in Borrowings and Continuing Breaches of Financial CovenantsAnnual report
「During the current consolidated fiscal year, borrowings decreased by ¥5,258 million through repayment, while the Group was in breach of financial covenants requiring an interest coverage ratio of 1 or less and losses for 2 consecutive periods. However, it confirmed that the bank did not intend to exercise its right to declare the loss of the benefit of time for repayment.」
Although the balance of borrowings decreased, breaches of financial covenants continued, and the Group confirmed the bank's intention not to exercise its rights. - FY2022-Q3WorsenedAnnual report
「当第３四半期連結会計期間末の負債合計は、前連結会計年度末に比べ2,133百万円増加し53,104百万円となりました。これは納税猶予分の一部を当第３四半期連結累計期間に支払ったこと等に伴い、未払金が1,633百万円減少したものの、借入金が3,013百万円増加したこと等によります。」
Borrowings increased by ¥3,013 million, and the expansion of financial exposure relating to dependence on external debt continues. - FY2022-Q2WorsenedAnnual report
「This was mainly due to a ¥1,288 million decrease in accounts payable and other current liabilities following payment during the current cumulative second-quarter period of part of the amount subject to tax payment deferral, while borrowings increased by ¥1,875 million, among other factors.」
Borrowings, mainly short-term borrowings, increased by ¥1,875 million, and the expansion of financial exposure relating to dependence on external debt continues. - FY2021WorsenedAnnual report
「Because the Group operates a business requiring substantial initial investment, it is highly dependent on external debt, and interest rate trends could affect the Group's operating results.」
The Group continued to disclose its external debt dependence and interest rate fluctuation risk, while financial exposure expanded as borrowings increased by ¥7,889 million during the current consolidated fiscal year. - FY2021-Q3WorsenedAnnual report
「当第３四半期連結会計期間末の負債合計は、前連結会計年度末に比べ5,990百万円増加し48,696百万円となりました。これは借入金が、5,257百万円増加したこと等によります。」
Borrowings increased by ¥5,257 million and total liabilities increased by ¥5,990 million, so the expansion of financial exposure relating to dependence on external debt continues. - FY2021-Q2WorsenedAnnual report
「当第２四半期連結会計期間末の負債合計は、前連結会計年度末に比べ5,663百万円増加し48,368百万円となりました。これは借入金が、5,619百万円増加したこと等によります。」
The increase in borrowings has expanded the Group's dependence on external debt, worsening its financial exposure to external debt dependence and interest rate fluctuations. - FY2020WorsenedAnnual report
「The Group's principal borrowings are subject to financial covenants, and a breach would result in the loss of the benefit of time for repayment. In such an event, the Group's cash flow could be affected.」
In addition to dependence on external debt and interest rate risk, it explicitly identified the loss of the benefit of time for repayment and the impact on cash flow resulting from breaches of financial covenants, and stated that the prolonged COVID-19 pandemic was increasing the possibility of these risks materializing. - FY2018RestatedAnnual report
「Because the Group operates a business requiring substantial initial investment, it is highly dependent on external debt and may be affected by interest rate trends.」
Funding risk arising from the initial investment burden, dependence on external debt and interest rate fluctuations continues. - FY2016First statedAnnual report
「Because the Group operates a business requiring substantial initial investment, it is highly dependent on external debt and may be affected by interest rate trends.」
Funding risk arising from the hotel business's initial investment burden and dependence on borrowings.