Material Doubt Regarding Going Concern Due to Consecutive Losses and High Interest-Bearing Debt
First written in FY2020-Q1. 6 of 21 entries say "Mitigated", first in FY2024-Q1. Latest entry: 2026-10-13.
T.O. Holdings moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
38 other companies' latest entry also says "Mitigated".
- FY2026-H1RestatedAnnual report
「During the first half of the current consolidated fiscal period, there were no material changes in the occurrence of matters among those relating to the business and accounting conditions described in this interim report that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The disclosure explicitly states that there have been no material changes to the existing risks, including material doubt regarding the going-concern assumption. - FY2024MitigatedAnnual report
「For the fiscal year, consolidated net sales were ¥25,605 million, down 3.4% year on year; operating profit was ¥306 million, up 51.3% year on year; ordinary profit was ¥221 million, up 327.4% year on year; and net profit attributable to owners of the parent was ¥111 million, compared with a loss of ¥521 million in the previous fiscal year.」
The group recorded full-year operating income, ordinary income and net income attributable to owners of the parent, reducing the factors behind its previous recurring losses. Although high interest-bearing debt remains, the current-year disclosure does not include the explanations of material doubt or material uncertainty that had appeared through the quarterly disclosures. - FY2024-Q3Material doubt continues; no material uncertaintyAnnual report
「At the end of the current third quarter, the group’s interest-bearing debt of ¥12,459 million was high relative to liquidity on hand of ¥431 million, and events or conditions existed that may raise material doubt regarding the going-concern assumption. Based on these circumstances, the group determined that there were no material concerns regarding cash flow and that no material uncertainty existed regarding the going-concern assumption.」
Although events giving rise to material doubt continue because of high interest-bearing debt, the group continues to assess that no material uncertainty exists, based on improved profitability, expected cash-flow improvement from withdrawing from unprofitable businesses, and the prospect of securing financing. - FY2024-Q2MitigatedAnnual report
「Based on these circumstances, the group determined that there were no material concerns regarding cash flow and that no material uncertainty existed regarding the going-concern assumption.」
Although high interest-bearing debt and material doubt remain, the group continues to assess that no material uncertainty exists, based on improved profitability, expected cash-flow improvement from withdrawing from unprofitable businesses, and financing from the main bank. - FY2024-Q1MitigatedAnnual report
「Based on these circumstances, the group determined that there were no material concerns regarding cash flow and that no material uncertainty existed regarding the going-concern assumption.」
Although high interest-bearing debt continues, the assessment changed to one that no material uncertainty exists regarding the going-concern assumption, based on improved profitability, expected cash-flow improvement from withdrawing from unprofitable businesses, and financing from the main bank. - FY2023-Q3WorsenedAnnual report
「The group’s interest-bearing debt stood at a high ¥14,750 million relative to its liquidity on hand, including cash and deposits of ¥971 million, and it continued to request support from its lending financial institutions, led by its main bank, on the premise of implementing management improvements. In light of these circumstances, the group recognizes that events or conditions exist that may raise material doubt about the going-concern assumption.」
Although the group recorded operating and ordinary income, the quarterly net loss attributable to owners of the parent was ¥74 million. Interest-bearing debt also increased to ¥14,750 million, and material doubt regarding the going-concern assumption and requests for support from financial institutions continue. - FY2023-Q2Profitability returns, but material doubt and high debt remainAnnual report
「The group’s interest-bearing debt stood at a high ¥14,370 million relative to its liquidity on hand, including cash and deposits of ¥943 million, and it continued to request support from its lending financial institutions, led by its main bank, on the premise of implementing management improvements. In light of these circumstances, the group recognizes that events or conditions exist that may raise material doubt about the going-concern assumption.」
Although the group recorded ordinary income of ¥93 million and quarterly net income attributable to owners of the parent of ¥31 million for the cumulative six-month period, material doubt regarding the going-concern assumption continues against the backdrop of high interest-bearing debt and requests for support from financial institutions. - FY2023-Q1Operating and ordinary profitability, but net loss attributable to owners of the parent and higher debtAnnual report
「The group’s interest-bearing debt stood at a high ¥14,463 million relative to its liquidity on hand, including cash and deposits of ¥675 million, and it continued to request support from its lending financial institutions, led by its main bank, on the premise of implementing management improvements. In light of these circumstances, the group recognizes that events or conditions exist that may raise material doubt about the going-concern assumption.」
In the current first quarter, the group recorded operating income of ¥50 million and ordinary income of ¥3 million, while the quarterly net loss attributable to owners of the parent was ¥23 million. Material doubt continues against the backdrop of higher interest-bearing debt and a high reliance on borrowings. - FY2022Ordinary profitability returns, but material doubt and high debt remainAnnual report
「The group recorded ordinary income of ¥22 million in the current consolidated fiscal year, but had continued to record ordinary losses through the previous consolidated fiscal year and had not achieved stable profitability. In addition, the group’s interest-bearing debt stood at a high ¥13,910 million relative to its liquidity on hand, including short-term borrowings of ¥8,662 million, long-term borrowings of ¥4,356 million and lease obligations of ¥890 million, compared with cash and deposits of ¥766 million. The group recognizes that events or conditions exist that may raise material doubt about the going-concern assumption.」
Although ordinary income was ¥22 million, the group has not achieved stable profitability, and material doubt remains against the backdrop of high interest-bearing debt and the impact of COVID-19. - FY2022-Q3Operating profitability continues, but ordinary and net losses remain; debt declines and material doubt continuesAnnual report
「The group recorded operating income of ¥120 million, an ordinary loss of ¥89 million and net income attributable to owners of the parent of ¥123 million in the previous consolidated fiscal year. However, during the cumulative nine months of the current fiscal year, it recorded operating income of ¥137 million, an ordinary loss of ¥15 million and a quarterly net loss attributable to owners of the parent of ¥56 million, and is in the process of structural reform aimed at improving profitability.」
Although the group recorded operating income, ordinary losses and quarterly net losses attributable to owners of the parent continued while structural reform was under way, and material doubt regarding the going-concern assumption remains. Interest-bearing debt was ¥14,384 million, while cash and deposits were ¥783 million. - FY2022-Q2Operating profit, but ordinary and net losses; material doubt remainsAnnual report
「The group recorded operating income of ¥120 million, an ordinary loss of ¥89 million and net income attributable to owners of the parent of ¥123 million in the previous consolidated fiscal year. However, during the cumulative six months of the current fiscal year, it recorded operating income of ¥77 million, an ordinary loss of ¥25 million and a quarterly net loss attributable to owners of the parent of ¥13 million, and is in the process of structural reform aimed at improving profitability.」
Although the group recorded operating income, it incurred an ordinary loss and a quarterly net loss attributable to owners of the parent, and material doubt regarding the going-concern assumption continues while structural reform is under way. - FY2022-Q1Losses recur and debt declines, but material doubt remainsAnnual report
「The group recorded operating income of ¥120 million, an ordinary loss of ¥89 million and net income attributable to owners of the parent of ¥123 million in the previous consolidated fiscal year. However, during the cumulative first quarter of the current fiscal year, it recorded an operating loss of ¥46 million, an ordinary loss of ¥94 million and a quarterly net loss attributable to owners of the parent of ¥59 million, and is in the process of structural reform aimed at improving profitability.」
The group moved from recording operating and net income in the previous consolidated fiscal year to recording operating, ordinary and net losses in the current first quarter. Interest-bearing debt has declined, but material doubt regarding the going-concern assumption continues. - FY2021-Q3WorsenedAnnual report
「The group recorded a quarterly net loss attributable to owners of the parent of ¥141 million during the cumulative nine months of the current fiscal year, resulting in a negative net worth of ¥47 million at the end of the current third quarter. In addition, the group’s interest-bearing debt stood at a high ¥17,660 million relative to its liquidity on hand, including cash and deposits of ¥1,929 million, and it continued to request support from its lending financial institutions, led by its main bank, on the premise of implementing management improvements.」
Although the group returned to operating profitability, the recognition of a quarterly net loss resulted in a negative net worth of ¥47 million, and material doubt regarding the going-concern assumption continues. - FY2021-Q2Profitability continues, but material doubt remains and debt increasesAnnual report
「Through the previous consolidated fiscal year, the group recorded operating and ordinary losses for 3 consecutive fiscal years and net losses attributable to owners of the parent for 5 consecutive fiscal years. In addition, the group’s interest-bearing debt stood at a high ¥18,332 million relative to its liquidity on hand, including cash and deposits of ¥2,451 million, and it continued to request support from its lending financial institutions, led by its main bank, on the premise of implementing management improvements.」
Although the group recorded operating, ordinary and net income for the cumulative six-month period, material doubt remains against the backdrop of recurring losses in prior fiscal years, high interest-bearing debt and requests for support from financial institutions. Interest-bearing debt increased from the previous quarter. - FY2021-Q1Recurring losses continue, debt declines, quarterly profitabilityAnnual report
「Through the previous consolidated fiscal year, the group recorded operating losses for 3 consecutive fiscal years, of ¥424 million in fiscal 2017, ¥271 million in fiscal 2018 and ¥375 million in fiscal 2019, and ordinary losses for 3 consecutive fiscal years, of ¥479 million in fiscal 2017, ¥354 million in fiscal 2018 and ¥552 million in fiscal 2019. It also recorded net losses attributable to owners of the parent for 5 consecutive fiscal years, of ¥39 million in fiscal 2015, ¥423 million in fiscal 2016, ¥1,282 million in fiscal 2017, ¥263 million in fiscal 2018 and ¥1,929 million in fiscal 2019. In addition, the group’s interest-bearing debt stood at a high ¥16,858 million relative to its liquidity on hand, including cash and deposits of ¥771 million, and it continued to request support from its lending financial institutions, led by its main bank, on the premise of implementing management improvements.」
While the disclosure specifies 3 consecutive fiscal years of operating and ordinary losses and 5 consecutive fiscal years of net losses attributable to owners of the parent through the previous consolidated fiscal year, interest-bearing debt declined from ¥19,272 million in the previous quarter to ¥16,858 million, and the current first quarter produced operating income, ordinary income and net income. Material doubt regarding the going-concern assumption nevertheless continues. - FY2020-Q3WorsenedAnnual report
「During the cumulative nine months of the current fiscal year, the group recorded an operating loss of ¥185 million, an ordinary loss of ¥401 million and a quarterly net loss attributable to owners of the parent of ¥400 million. In addition, the group’s interest-bearing debt stood at a high ¥19,272 million relative to its liquidity on hand, including cash and deposits of ¥657 million. The group also expects the spread of COVID-19 to affect future performance and continued to request support from its lending financial institutions, led by its main bank, on the premise of implementing management improvements.」
The group recorded operating, ordinary and net losses for the cumulative nine-month period, while interest-bearing debt increased to ¥19,272 million. The expected impact of COVID-19 on performance has also made the material going-concern issue more concrete in a negative direction. - FY2020-Q2WorsenedAnnual report
「The group’s recovery in the timber and distribution businesses has been delayed. In the previous consolidated fiscal year, it recorded operating losses for 2 consecutive fiscal years, of ¥424 million in fiscal 2017 and ¥271 million in fiscal 2018, and ordinary losses for 2 consecutive fiscal years, of ¥479 million in fiscal 2017 and ¥354 million in fiscal 2018. It also recorded net losses attributable to owners of the parent for 4 consecutive fiscal years, of ¥39 million in fiscal 2015, ¥423 million in fiscal 2016, ¥1,282 million in fiscal 2017 and ¥263 million in fiscal 2018.」
The disclosure specifies the delayed recovery of the timber and distribution businesses, 2 consecutive fiscal years of operating and ordinary losses, and 4 consecutive fiscal years of net losses attributable to owners of the parent, providing more specific background to the material doubt regarding the going-concern assumption. - FY2020-Q1First statedAnnual report
「During the cumulative first quarter of the current fiscal year, the group recorded an operating loss of ¥77 million, an ordinary loss of ¥88 million and a quarterly net loss attributable to owners of the parent of ¥227 million. In addition, the group’s interest-bearing debt stood at a high ¥18,705 million relative to its liquidity on hand, and it continued to request support from its lending financial institutions, led by its main bank, on the premise of implementing management improvements. In light of these circumstances, the group recognizes that events or conditions exist that may raise material doubt about the going-concern assumption.」
The company explicitly states for the first time that recurring operating, ordinary and net losses, high interest-bearing debt and requests for support from financial institutions give rise to material doubt and material uncertainty regarding the going-concern assumption.