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.

What Lies Behind the Inability to Come up with Flexible Cash Usage Is

In TSE as a Whole, There Are Far More Companies Whose Traditional Issues Have Not Been Resolved

Is the Gap Between the Skills Matrix and the Board Personnel Needed Widening?

Shouldn't Shareholders Raise Voice for a Company that Is Building up Cash While Its ROE Is Sluggish?

Japanese Managers Have Always Wanted to Distance Themselves from Market Pressures

A Common Case of a Company with a Low ROE but with the Founding Family Serving as Successive CEOs

Shareholder Returns Should Be Examined on a Cash Basis, Not on a Net Profit Basis

A Change in Manager's Mindset that Has Begun Will Lower the Investment Risk for Activist Investors

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Profit margins boosted by cuts in personnel, R&amp;D, CapEx, and corporate tax rates. Much of the improved free cash flow went onto the balance sheet instead of being invested.</li>
<li>OP Margin's sluggish growth indicates that the cost-cutting model is no longer working. Investments are needed to create products with higher gross margins.</li>
<li>While the limitations of the cost-cutting model can be seen, ROE, which indicates the achievement of the management goal of increasing medium-to-long-term shareholder returns, is sluggish in many companies.</li>
</ul>


Profit margins boosted by cuts in personnel, R&amp;D, CapEx, and corporate tax rates. Much of the improved free cash flow went onto the balance sheet instead of being invested.
OP Margin's sluggish growth indicates that the cost-cutting model is no longer working. Investments are needed to create products with higher gross margins.
While the limitations of the cost-cutting model can be seen, ROE, which indicates the achievement of the management goal of increasing medium-to-long-term shareholder returns, is sluggish in many companies.


Any Manager Can Simply Implement Shareholder Returns

TSE Tokyo Price Index TOPIX

Any Manager Can Simply Implement Shareholder Returns