Financing Risk from Reliance on Borrowings and Rising Interest Rates
First written in FY2017. 19 of 33 entries say "Mitigated", first in FY2020-Q1. Latest entry: FY2027-H1.
The whole theme swung hardest in 2020: 63 of 142 companies on the "Worse" side.
- FY2027-H1MitigatedAnnual report
「Liabilities at the end of the interim accounting period decreased by ¥1.145 billion from the end of the previous fiscal year to ¥27.585 billion. This was mainly due to a ¥379 million increase in electronically recorded obligations and decreases of ¥277 million in notes and accounts payable, ¥700 million in short-term borrowings and ¥675 million in long-term borrowings, among other factors.」
Total liabilities decreased by ¥1.145 billion, with short-term borrowings down ¥700 million and long-term borrowings down ¥675 million from the end of the previous fiscal year. Borrowing exposure contracted during the interim period. - FY2026WorsenedAnnual report
「As of 28 February 2026, the balance of long-term borrowings was ¥14.616 billion. In addition, at the end of the fiscal year, the Company had entered into overdraft and loan commitment agreements with The San-in Godo Bank,Ltd. totaling ¥4 billion (borrowings drawn: ¥1.2 billion; undrawn borrowing capacity: ¥2.8 billion).」
The balance of long-term borrowings increased from ¥11.959 billion in the previous fiscal year to ¥14.616 billion. Although the drawn balance decreased from ¥1.6 billion to ¥1.2 billion, funding exposure, including long-term borrowings, expanded. - FY2026-H1WorsenedAnnual report
「Liabilities at the end of the interim accounting period increased by ¥2.163 billion from the end of the previous fiscal year to ¥28.107 billion. This was mainly due to increases of ¥1.139 billion in electronically recorded obligations and ¥1.767 billion in long-term borrowings, and decreases of ¥381 million in notes and accounts payable and ¥500 million in short-term borrowings, among other factors.」
Short-term borrowings decreased by ¥500 million, while long-term borrowings increased by ¥1.767 billion, and total liabilities also increased by ¥2.163 billion, indicating an expansion in funding exposure, including borrowings. - FY2025-H1MitigatedAnnual report
「Liabilities at the end of the interim accounting period increased by ¥1.049 billion from the end of the previous fiscal year to ¥26.73 billion. This was mainly due to increases of ¥1.146 billion in electronically recorded obligations and ¥534 million in notes payable for equipment included in other current liabilities, and a decrease of ¥680 million in borrowings, among other factors.」
Although total liabilities increased, borrowings decreased by ¥680 million from the end of the previous fiscal year, confirming a reduction in borrowing exposure. - FY2025-Q1MitigatedAnnual report
「This was mainly due to increases of ¥272 million in notes and accounts payable and ¥1.109 billion in electronically recorded obligations, and a decrease of ¥1.039 billion in borrowings, among other factors.」
Borrowings decreased by ¥1.039 billion from the end of the previous fiscal year, confirming a reduction in borrowing exposure. - FY2024WorsenedAnnual report
「As of 29 February 2024, the balance of long-term borrowings was ¥11.959 billion. In addition, at the end of the fiscal year, the Company had entered into overdraft and loan commitment agreements with The San-in Godo Bank,Ltd. totaling ¥4 billion (borrowings drawn: ¥1.6 billion; undrawn borrowing capacity: ¥2.4 billion).」
The balance of long-term borrowings increased from ¥11.132 billion in the previous fiscal year to ¥11.959 billion, and the drawn balance under the commitment facilities also increased from ¥1.1 billion to ¥1.6 billion. Funding exposure has expanded. - FY2024-Q3WorsenedAnnual report
「Liabilities at the end of the third quarter accounting period increased by ¥845 million from the end of the previous fiscal year to ¥26 billion. This was mainly due to increases of ¥531 million in trade payables and ¥594 million in borrowings, among other factors.」
Following the declines in borrowings observed in the first and second quarters, borrowings at the end of the third quarter accounting period increased by ¥594 million from the end of the previous fiscal year, and borrowing exposure has expanded again. - FY2024-Q2MitigatedAnnual report
「Liabilities at the end of the second quarter accounting period increased by ¥239 million from the end of the previous fiscal year to ¥25.395 billion. This was mainly due to a ¥518 million increase in trade payables and decreases of ¥100 million in borrowings and ¥244 million in notes payable for equipment included in other current liabilities, among other factors.」
Although total liabilities increased, borrowings decreased by ¥100 million from the end of the previous fiscal year, confirming a reduction in borrowing exposure. - FY2024-Q1MitigatedAnnual report
「Liabilities at the end of the first quarter accounting period increased by ¥1.135 billion from the end of the previous fiscal year to ¥26.29 billion. This was mainly due to a ¥1.376 billion increase in trade payables and a ¥270 million decrease in borrowings, among other factors.」
Although total liabilities increased, borrowings decreased by ¥270 million from the end of the previous fiscal year, confirming a reduction in borrowing exposure. - FY2023WorsenedAnnual report
「As of 28 February 2023, the balance of long-term borrowings was ¥11.132 billion. In addition, at the end of the fiscal year, the Company had entered into overdraft and loan commitment agreements with The San-in Godo Bank,Ltd. totaling ¥4 billion (borrowings drawn: ¥1.1 billion; undrawn borrowing capacity: ¥2.9 billion).」
The balance of long-term borrowings increased from ¥9.657 billion in the previous fiscal year to ¥11.132 billion, while the drawn balance under the overdraft and commitment facilities also reached ¥1.1 billion, confirming an expansion in funding exposure for the full fiscal year. - FY2023-Q3WorsenedAnnual report
「Liabilities at the end of the third quarter accounting period increased by ¥4.239 billion from the end of the previous fiscal year to ¥26.422 billion. This was mainly due to increases of ¥1.368 billion in trade payables and ¥1.954 billion in borrowings, among other factors.」
Borrowings increased by ¥1.954 billion from the end of the previous fiscal year, further extending the upward trend in borrowings observed through the previous quarter. - FY2023-Q2WorsenedAnnual report
「Liabilities at the end of the second quarter accounting period increased by ¥1.989 billion from the end of the previous fiscal year to ¥24.172 billion. This was mainly due to increases of ¥849 million in trade payables, ¥305 million in income taxes payable and ¥360 million in borrowings, among other factors.」
Following the upward trend in borrowings through the end of the previous fiscal year, borrowings also increased by ¥360 million at the end of the second quarter accounting period, and the expansion in funding exposure has continued. - FY2023-Q1WorsenedAnnual report
「Liabilities at the end of the first quarter accounting period increased by ¥3.088 billion from the end of the previous fiscal year to ¥25.271 billion. This was mainly due to increases of ¥1.513 billion in trade payables and ¥729 million in borrowings, among other factors.」
The decline in borrowings observed through the end of the previous fiscal year reversed, with borrowings increasing by ¥729 million at the end of the first quarter. Increased reliance on borrowings and an expansion in funding exposure have been observed. - FY2022WorsenedAnnual report
「As of 28 February 2022, the balance of long-term borrowings was ¥9.657 billion. In addition, at the end of the fiscal year, the Company had entered into overdraft and loan commitment agreements with The San-in Godo Bank,Ltd. totaling ¥4 billion (borrowings drawn: ¥300 million; undrawn borrowing capacity: ¥3.7 billion).」
The balance of long-term borrowings increased from ¥9.351 billion in the previous fiscal year to ¥9.657 billion, and short-term borrowings of ¥300 million were also incurred. Of the ¥4 billion in overdraft and commitment facilities, ¥300 million had been drawn. - FY2022-Q3WorsenedAnnual report
「Liabilities at the end of the third quarter accounting period increased by ¥603 million from the end of the previous fiscal year to ¥23.834 billion. This was mainly due to a ¥1.088 billion increase in borrowings and a ¥505 million decrease in income taxes payable and other items.」
Unlike the decline in borrowings that continued through the previous quarter, borrowings at the end of the third quarter accounting period increased by ¥1.088 billion from the end of the previous fiscal year, reversing and expanding the borrowing exposure. - FY2022-Q2MitigatedAnnual report
「At the end of the second quarter of the current fiscal year, liabilities decreased by ¥1,062 million from the end of the previous fiscal year to ¥22,168 million. This was mainly due to decreases of ¥255 million in income taxes payable and ¥367 million in borrowings.」
Borrowings decreased by ¥367 million from the end of the previous fiscal year, confirming a reduction in borrowing exposure. - FY2022-Q1MitigatedAnnual report
「This was mainly due to an increase of ¥1,092 million in trade payables and decreases of ¥403 million in income taxes payable and ¥472 million in borrowings.」
Borrowings decreased by ¥472 million from the end of the previous fiscal year, confirming a reduction in reliance on borrowings and financing exposure. - FY2021MitigatedAnnual report
「As of 28 February 2021, the balance of long-term borrowings was ¥9,351 million.」
The balance of long-term borrowings decreased from ¥10,541 million in the previous fiscal year to ¥9,351 million, confirming a reduction in borrowing exposure. - FY2021-Q3MitigatedAnnual report
「At the end of the third quarter of the current fiscal year, liabilities decreased by ¥500 million from the end of the previous fiscal year to ¥24,564 million. This was mainly due to increases of ¥1,590 million in trade payables and ¥571 million in income taxes payable, and a decrease of ¥2,784 million in borrowings.」
Total liabilities decreased, and the decrease in borrowings from the end of the previous fiscal year expanded to ¥2,784 million, confirming a reduction in borrowing exposure. - FY2021-Q2MitigatedAnnual report
「At the end of the second quarter of the current fiscal year, liabilities decreased by ¥52 million from the end of the previous fiscal year to ¥25,012 million. This was mainly due to increases of ¥1,862 million in trade payables and ¥517 million in income taxes payable, and a decrease of ¥2,252 million in borrowings.」
Total liabilities decreased, and borrowings were disclosed as having decreased by ¥2,252 million from the end of the previous fiscal year, confirming a reduction in borrowing exposure. - FY2021-Q1MitigatedAnnual report
「At the end of the first quarter of the current fiscal year, liabilities increased by ¥1,599 million from the end of the previous fiscal year to ¥26,664 million. This was mainly due to increases of ¥2,585 million in trade payables and ¥174 million in income taxes payable, and a decrease of ¥1,121 million in borrowings.」
Although total liabilities increased, borrowings decreased by ¥1,121 million from the end of the previous fiscal year, confirming a reduction in borrowing exposure. - FY2020MitigatedAnnual report
「As of 29 February 2020, the balance of long-term borrowings was ¥10,541 million.」
The balance of long-term borrowings decreased to ¥10,541 million from ¥11,641 million in the previous fiscal year, confirming a reduction in borrowing exposure of ¥1,100 million. - FY2020-Q3MitigatedAnnual report
「At the end of the third quarter of the current fiscal year, liabilities increased by ¥544 million from the end of the previous fiscal year to ¥25,650 million. This was mainly due to an increase of ¥1,327 million in trade payables and a decrease of ¥838 million in borrowings.」
Although total liabilities increased by ¥544 million, borrowings decreased by ¥838 million from the end of the previous fiscal year, confirming a reduction in borrowing exposure. - FY2020-Q2MitigatedAnnual report
「At the end of the second quarter of the current fiscal year, liabilities increased by ¥188 million from the end of the previous fiscal year to ¥25,294 million. This was mainly due to increases of ¥1,228 million in trade payables and ¥205 million in lease liabilities, and decreases of ¥783 million in borrowings and ¥489 million in notes payable for equipment.」
Although total liabilities increased, borrowings were disclosed as having decreased by ¥783 million from the end of the previous fiscal year, confirming a reduction in borrowing exposure. - FY2020-Q1MitigatedAnnual report
「This was mainly due to an increase of ¥1,546 million in trade payables and decreases of ¥596 million in borrowings and ¥295 million in notes payable for equipment included in other current liabilities.」
Borrowings were disclosed as having decreased by ¥596 million from the end of the previous fiscal year, confirming a reduction in borrowing exposure. - FY2019WorsenedAnnual report
「We obtain funds for capital expenditures, working capital and other purposes through borrowings from financial institutions, but factors such as deterioration in our operating environment, mergers among financial institutions and the privatization of government-affiliated financial institutions may affect our transactions with financial institutions.」「As of 28 February 2019, the balance of long-term borrowings was ¥11,641 million.」
The disclosure continues to identify risks associated with reliance on borrowings and interest-rate trends, while disclosing long-term borrowings of ¥11,641 million. The balance increased from the prior-year long-term borrowings of ¥10,328 million, including current maturities, indicating greater financing exposure. - FY2017First statedAnnual report
「We obtain funds for capital expenditures, working capital and other purposes through borrowings from financial institutions, but factors such as deterioration in our operating environment, mergers among financial institutions and the privatization of government-affiliated financial institutions may affect our transactions with financial institutions. In addition, depending on future interest-rate trends, higher interest expenses and other factors may affect our business results and financial position.」
The disclosure identifies as risks the effects of financing capital expenditures and working capital through bank borrowings, changes in the operating environment and financial institutions, and interest-rate trends.