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.

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?

Key to Look Carefully to See if What Is Disclosed Is Consistent with Profitability and Other Results

Any Manager Can Simply Implement Shareholder Returns

Companies with Low ROEs Have Corporate Governance Practices that Only Make It So

Since Cash on Hand Will Not Decrease in FY2024, Shareholder Returns Remain a Hot Topic

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Many Japanese managers have little idea that what belongs to shareholders is net profit and not free cash flow. This has created two problems.</li>
<li>If Japanese companies, mostly manufacturers, use dividend payout ratios as a criterion for shareholder returns, cash on hand will not decline even if shareholder returns are increased to some extent.</li>
<li>The inability to move beyond the concept of allocating investment and shareholder returns based on increases or decreases in cash may be the reason for the unclear cash allocation policy.</li>
</ul>


Many Japanese managers have little idea that what belongs to shareholders is net profit and not free cash flow. This has created two problems.
If Japanese companies, mostly manufacturers, use dividend payout ratios as a criterion for shareholder returns, cash on hand will not decline even if shareholder returns are increased to some extent.
The inability to move beyond the concept of allocating investment and shareholder returns based on increases or decreases in cash may be the reason for the unclear cash allocation policy.


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

TSE Tokyo Price Index TOPIX

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