Daily BriefsESG

Daily Brief ESG: The Key to Higher ROE Is Higher Profit Margins and Faster Efforts by Smaller Companies and more

In today’s briefing:

  • The Key to Higher ROE Is Higher Profit Margins and Faster Efforts by Smaller Companies


The Key to Higher ROE Is Higher Profit Margins and Faster Efforts by Smaller Companies

By Aki Matsumoto

  • Since TSE’s request, more companies have used ROE or ROIC as KPIs in mid-term management plans, but even now, more companies only indicate targets for sales, operating profit, etc.
  • Larger companies have been the first to raise ROE; the key will be for smaller companies, which have been slower to improve their ROE, to raise their ROE.
  • Many companies have only just begun to reduce their policy shareholdings and strengthen shareholder returns, and are still in the process of addressing the core issue of increasing profit margins.

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