⚠ Leverage Rising to Pay for ItModerate threat

ITOCHU (8001) — threat to the moat

ITOCHU is borrowing to buy companies and buy back its own shares at the same time.

ITOCHU's net debt to equity was 0.46 at March 20261 and 0.51 at June 20262, and the company's plan allows it to rise to about 0.6 times3. Net interest-bearing debt rose from ¥3,024.3 billion to ¥3,435.1 billion in three months4.

Net interest-bearing debt (¥ bn)3,024.3March 20263,435.1June 2026ITOCHU results, April-June 2026
¥411 billion more net debt in three months.

The company is spending on two fronts at once: about ¥1.5 trillion of growth investment5 and at least ¥300.0 billion of buybacks6. It says it will keep its balance sheet in line with an A credit rating7.

Interest expense was ¥105,610 million in the latest year8, and interest coverage 7.7 times, down from 8.3 two years earlier9. Net debt to equity was 0.51 at both March 2024 and March 202510, so the ratio has moved around this level before.

The measure is net debt to equity at March 2027. Above 0.6 would mean the investment pace outran the plan.

References
  1. ReportedITOCHU's net debt to equity was 0.46 at March 2026 and 0.51 at June 2026, and the company's plan allows it to rise to about 0.6 times.
    ITOCHU Corporation, Financial Information Report 2026 - the audited financial statements, segment information, the customer statement, goodwill including FamilyMart, CITIC and the risk factors. — FY to March 2026 · publ. 12 June 2026 · source ↗
  2. ReportedITOCHU's net debt to equity was 0.46 at March 2026 and 0.51 at June 2026, and the company's plan allows it to rise to about 0.6 times.
    ITOCHU Corporation, Consolidated Financial Results for the three months ended June 30, 2026 (IFRS) - revenues, trading income, equity earnings, net profit, segment results, the balance sheet and the ¥300 billion buyback. — April-June 2026 · publ. 6 August 2026 · source ↗
  3. ReportedITOCHU's net debt to equity was 0.46 at March 2026 and 0.51 at June 2026, and the company's plan allows it to rise to about 0.6 times.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - shareholder returns (dividends, buybacks and payout), ROE, leverage and share-price performance against TOPIX. — FY to March 2026 · publ. 14 May 2026 · source ↗
  4. ReportedNet interest-bearing debt rose from ¥3,024.3 billion to ¥3,435.1 billion in three months.
    ITOCHU Corporation, Consolidated Financial Results for the three months ended June 30, 2026 (IFRS) - revenues, trading income, equity earnings, net profit, segment results, the balance sheet and the ¥300 billion buyback. — April-June 2026 · publ. 6 August 2026 · source ↗
  5. ReportedThe company is spending on two fronts at once: about ¥1.5 trillion of growth investment and at least ¥300.0 billion of buybacks.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - shareholder returns (dividends, buybacks and payout), ROE, leverage and share-price performance against TOPIX. — FY to March 2026 · publ. 14 May 2026 · source ↗
  6. ReportedThe company is spending on two fronts at once: about ¥1.5 trillion of growth investment and at least ¥300.0 billion of buybacks.
    ITOCHU Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - statements of comprehensive income, financial position and cash flows, the segment information by eight division companies, the share split, dividends, the buyback plan and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  7. ReportedIt says it will keep its balance sheet in line with an A credit rating.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - net profit, core profit and extraordinary items by segment, investment and exit, and the management plan for the year to March 2027. — FY to March 2026 · publ. 14 May 2026 · source ↗
  8. ReportedInterest expense was ¥105,610 million in the latest year, and interest coverage 7.7 times, down from 8.3 two years earlier.
    ITOCHU Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - statements of comprehensive income, financial position and cash flows, the segment information by eight division companies, the share split, dividends, the buyback plan and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  9. ReportedInterest expense was ¥105,610 million in the latest year, and interest coverage 7.7 times, down from 8.3 two years earlier.
    ITOCHU Corporation, Financial Information Report 2026 - the audited financial statements, segment information, the customer statement, goodwill including FamilyMart, CITIC and the risk factors. — FY to March 2026 · publ. 12 June 2026 · source ↗
  10. ReportedNet debt to equity was 0.51 at both March 2024 and March 2025, so the ratio has moved around this level before.
    ITOCHU Corporation, Financial Information Report 2026 - the audited financial statements, segment information, the customer statement, goodwill including FamilyMart, CITIC and the risk factors. — FY to March 2026 · publ. 12 June 2026 · source ↗
Sources
Generated September 24, 2026