Daily BriefsESG

Daily Brief ESG: The Solution Is to Improve the Gross Profit Margin and Return Excess Cash to Shareholders and more

By September 16, 2026 No Comments

In today’s briefing:

  • The Solution Is to Improve the Gross Profit Margin and Return Excess Cash to Shareholders


The Solution Is to Improve the Gross Profit Margin and Return Excess Cash to Shareholders

By Aki Matsumoto

  • Since FY2022, the NP Margin and Equity Ratio have moved in parallel, indicating that the improvement in non-operating income and expenses has directly contributed to the increase in equity.
  • Over the past few years, while sales growth driven by passing on inflationary costs has gradually boosted operating profit, the improvement in the operating profit margin has been negligible.
  • To raise profit margins to a level that can stand up to comparisons with companies in other countries, create products with high gross profit margins to increase cash flow.

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