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.

Isn't It Not Strong Enough to Raise ROE by Higher Profit Margin Due to Escape from Deflation?

Doesn't Cooperation Rather than Competition Slow the Pace of Improvement in Disclosure in English?

The Solution to Better Corporate Governance Is to Reduce the # of Companies with Large Shareholders

In Correlation with TOPIX, Nominal GDP Has Become Even Higher, While P/B Has Been Scarce Since 2020

Is Japan's Culture the Psychology of Managers Who Prefer to Keep Cash on Hand over Higher ROE?

Is the Deflationary Mindset of Managers Still Prevailing?

When Will Deflationary Mindset of Managers Disappear? Some Companies Have Begun to Change, Though

Investors Want to See a Shift in Management to Create Value, Not Just Meet Government Target Numbers

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Net profit per listed company increased 4.4 times over the 33 years from 1989 to 2023, which means only a modest 4.5% annual growth.</li>
<li>The reason why ROE has been sluggish since FY 2005 is due to the slow growth of Net Profit Margin, the decline of Asset Turnover, and the flat financial leverage.</li>
<li>When the escape from deflation becomes a reality, the key is to have products ready to pass on prices, and defense by cash alone is not sufficient for this purpose.</li>
</ul>


Net profit per listed company increased 4.4 times over the 33 years from 1989 to 2023, which means only a modest 4.5% annual growth.
The reason why ROE has been sluggish since FY 2005 is due to the slow growth of Net Profit Margin, the decline of Asset Turnover, and the flat financial leverage.
When the escape from deflation becomes a reality, the key is to have products ready to pass on prices, and defense by cash alone is not sufficient for this purpose.


How Long Will the Escape from Deflation Be a Greater Factor in Stock Price Rises than ROE?

TSE Tokyo Price Index TOPIX

How Long Will the Escape from Deflation Be a Greater Factor in Stock Price Rises than ROE?