In today’s briefing:
- There Are Still Many Companies that Fail to Carry Out Both What They Can Do and What They Must Do
There Are Still Many Companies that Fail to Carry Out Both What They Can Do and What They Must Do
- The reasons behind the sluggish ROE include insufficient shareholder returns, along with inadequate investment in creating businesses with high gross profit margins and insufficient implementation of business and industry restructuring.
- Both ROE and net profit margin improved sharply in FY2017, primarily due to corporate tax cuts; since then, companies failed to implement fundamental measures to improve their operating profit margins.
- All we can do is hope that the rising cost of capital will give those managers who haven’t been able to implement the necessary measures the push they need.
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