Rising Debt LevelsTotal debt rose materially to ~¥7.0B from ~¥4.4B year-over-year, increasing leverage. Higher debt raises fixed interest and refinancing costs and reduces balance-sheet flexibility, elevating liquidity and solvency risk if travel demand softens or margins compress in a downturn.
Weaker Cash ConversionFree cash flow fell sharply and now represents only ~51% of net income (down from ~96%), signaling weaker cash conversion and possible working-capital or reinvestment pressure. This variability undermines predictability of funds available for capex, dividends, or debt reduction.
Margin Volatility Vs Peak LevelsMargins remain below peak FY2021–FY2022 levels and profitability has been volatile across cycles. Such margin swings reduce earnings predictability, making long-term planning harder and increasing sensitivity to competitive pricing, seasonal demand shifts, or macro travel headwinds.