Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

Now Is the Time to Seek Ingenuity in Cash Allocation, Not Lament the Decline in Equity Financing

Amid Slow ROE Improvement, Calls for Stronger Shareholder Returns Will Become Even Stronger

Expanding Nominal Profits from Shift from Deflation Rather than P/B Is the Driver of Stock Prices

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>The need to obtain investment capital for future business development or the presence of stakeholders with a strong desire to improve asset efficiency may be the catalyst for selling property.</li>
<li>Of course, cash should be used to return to shareholders, but the stock market expects more profit growth, so higher profit margins and ROE are required.</li>
<li>The data from Ministry of Finance indicates that cash still hasn't been spent on investments. Cash appears to be currently being used reluctantly for investments that will generate future profits.</li>
</ul>


The need to obtain investment capital for future business development or the presence of stakeholders with a strong desire to improve asset efficiency may be the catalyst for selling property.
Of course, cash should be used to return to shareholders, but the stock market expects more profit growth, so higher profit margins and ROE are required.
The data from Ministry of Finance indicates that cash still hasn't been spent on investments. Cash appears to be currently being used reluctantly for investments that will generate future profits.


After Selling the Property, There Appears to Be No Set Plan for How the Cash Will Be Used

TSE Tokyo Price Index TOPIX

After Selling the Property, There Appears to Be No Set Plan for How the Cash Will Be Used