In today’s briefing:
- How Long Can a Model Where Profit Is Helped by Low Growth in Labor Cost and Depreciation Continue?
How Long Can a Model Where Profit Is Helped by Low Growth in Labor Cost and Depreciation Continue?
- As lack of investment, including in human capital, is recognized as a factor behind the lack of growth, there’re plans to enhance disclosure of human capital in annual securities reports.
- While labor share of large companies has fallen 1.3 ppt over the past year, OP margins increased only 0.3 ppt. It’s necessary to produce products with high gross profit margins.
- Unable to make bold investments to create higher added-value products, companies instead use cash-flows for shareholders return without increasing cash reserves, resulting in high level of cash on hand.
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