From Net Debt of 2.1 Times Equity to 0.43Narrow moat

Marubeni (8002) — moat facet

Marubeni cut its leverage by four-fifths in a decade, and it is now choosing to add some back.

Marubeni's net interest-bearing debt was 2.10 times its equity in the year to March 20161, a level that made it vulnerable to every commodity downturn. By the year to March 2026 it was 0.43 times2, on net debt of ¥1,858.7 billion3.

Net debt to equity, times2.10Mar 20160.93Mar 20210.43Mar 20260.46Jun 2026Marubeni Integrated Report 2026 and Q1 results
Down by four-fifths, and ticking up again.

The repair came from retained profits, asset sales and a rising yen value of foreign assets. It also came from the associates model: equity-method investments are carried as assets without their debt appearing on Marubeni's balance sheet.

Credit agencies have noticed. The domestic agencies rate Marubeni AA (JCR) and AA- (R&I), and S&P upgraded it to A- in November 20254. A lower cost of debt is itself a competitive advantage for a company whose business is holding assets.

The path was not smooth. Net D/E fell to 0.94 in the year to March 2019, rose to 1.23 in the loss year of 2020, then fell steadily to 0.52 in the year to March 2023 and 0.43 in the latest year5. The company changed the denominator of the ratio to shareholders' equity from the year to March 2023 and adjusted past years6.

The measure is net D/E through the next investment cycle. The company expects to use more leverage; if it rises above 0.6, a decade of repair will have been spent.

Moat trajectory: Narrowing

Net D/E rose from 0.43 at March 2026 to 0.46 at June 2026 as net debt reached ¥2,050.5 billion, and the company says it will use leverage flexibly.

The number that tests this moat
Reported
Net debt to equity
0.43 at March 2026, 0.46 at June 2026

The decade-long decline has turned; a rise above 0.6 would undo part of the repair.

Source: Marubeni results, April-June 2026 ↗
⚠ Threats to the moat
⚠ THREAT 01
The Leverage Is Coming Back
Marubeni has decided to borrow to invest and to buy back shares, which reverses a decade of repair.
References
  1. ReportedMarubeni's net interest-bearing debt was 2.10 times its equity in the year to March 2016, a level that made it vulnerable to every commodity downturn.
    Marubeni Integrated Report 2026, Section 6 Corporate Data - the twelve-year financial summary (revenue, gross trading profit, operating profit, share of associates, net profit, adjusted net profit, EPS, dividends, ROE, ROA, net D/E, cash flows, total assets and equity), shareholder composition, employees and gross risk exposure by country. — FY to March 2015 - FY to March 2026 · publ. 2026 · source ↗
  2. ReportedBy the year to March 2026 it was 0.43 times, on net debt of ¥1,858.7 billion.
    Marubeni Integrated Report 2026, Section 6 Corporate Data - the twelve-year financial summary (revenue, gross trading profit, operating profit, share of associates, net profit, adjusted net profit, EPS, dividends, ROE, ROA, net D/E, cash flows, total assets and equity), shareholder composition, employees and gross risk exposure by country. — FY to March 2015 - FY to March 2026 · publ. 2026 · source ↗
  3. ReportedBy the year to March 2026 it was 0.43 times, on net debt of ¥1,858.7 billion.
    Marubeni Integrated Report 2026, Section 6 Corporate Data - the twelve-year financial summary (revenue, gross trading profit, operating profit, share of associates, net profit, adjusted net profit, EPS, dividends, ROE, ROA, net D/E, cash flows, total assets and equity), shareholder composition, employees and gross risk exposure by country. — FY to March 2015 - FY to March 2026 · publ. 2026 · source ↗
  4. ReportedThe domestic agencies rate Marubeni AA (JCR) and AA- (R&I), and S&P upgraded it to A- in November 2025.
    Marubeni Integrated Report 2026, Section 6 Corporate Data - the twelve-year financial summary (revenue, gross trading profit, operating profit, share of associates, net profit, adjusted net profit, EPS, dividends, ROE, ROA, net D/E, cash flows, total assets and equity), shareholder composition, employees and gross risk exposure by country. — FY to March 2015 - FY to March 2026 · publ. 2026 · source ↗
  5. ReportedNet D/E fell to 0.94 in the year to March 2019, rose to 1.23 in the loss year of 2020, then fell steadily to 0.52 in the year to March 2023 and 0.43 in the latest year.
    Marubeni Integrated Report 2026, Section 6 Corporate Data - the twelve-year financial summary (revenue, gross trading profit, operating profit, share of associates, net profit, adjusted net profit, EPS, dividends, ROE, ROA, net D/E, cash flows, total assets and equity), shareholder composition, employees and gross risk exposure by country. — FY to March 2015 - FY to March 2026 · publ. 2026 · source ↗
  6. ReportedThe company changed the denominator of the ratio to shareholders' equity from the year to March 2023 and adjusted past years.
    Marubeni Integrated Report 2026, Section 6 Corporate Data - the twelve-year financial summary (revenue, gross trading profit, operating profit, share of associates, net profit, adjusted net profit, EPS, dividends, ROE, ROA, net D/E, cash flows, total assets and equity), shareholder composition, employees and gross risk exposure by country. — FY to March 2015 - FY to March 2026 · publ. 2026 · source ↗
Sources
Generated September 24, 2026