In today’s briefing:
- To Raise a Company’s ROE and OP Margin, Significant Restructuring of Business Portfolio Is Necessary
To Raise a Company’s ROE and OP Margin, Significant Restructuring of Business Portfolio Is Necessary
- BoJ will want to retain discretion regarding ETF sales, so it’ll sell flexibly depending on stock market conditions. The sale of ETFs is just the beginning of a long journey.
- The shift to inflationary economy has made it easier than before to implement measures to improve capital profitability. Nevertheless, companies whose capital profitability hasn’t improved significantly should make further efforts.
- To raise average ROE of companies 2ppt, OP margin must increase 25% from current levels. Achieving 25% increase in a company’s overall OP margin requires significant restructuring of business portfolios.
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