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.

Why Is Capital Profitability Slow to Improve, Even Though More Board Members Have “Finance Skills”?

There Are Still Many Companies that Fail to Carry Out Both What They Can Do and What They Must Do

Will Rising Capital Cost Lead to Fundamental Solution Beyond Simply Increasing Shareholder Returns?

Without Fundamental Solutions, Tackling Issues by Comparing to Other Countries Is the Usual Pattern

How Long Can a Model Where Profit Is Helped by Low Growth in Labor Cost and Depreciation Continue?

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

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Cash flow is of the utmost importance for companies operated under the going-concern assumption. Therefore, companies and businesses are valued by discounting their cash flows at the cost of capital.</li>
<li>To determine whether there have been improvements in each item this year compared to the previous one, it seems that using an accounting measure such as ROIC is convenient approach.</li>
<li>The reason Japanese companies have low operating margins is that many have low gross profit margins. Management strategy—including allocation of resources to develop products with high gross profit margins—is necessary.</li>
</ul>


Cash flow is of the utmost importance for companies operated under the going-concern assumption. Therefore, companies and businesses are valued by discounting their cash flows at the cost of capital.
To determine whether there have been improvements in each item this year compared to the previous one, it seems that using an accounting measure such as ROIC is convenient approach.
The reason Japanese companies have low operating margins is that many have low gross profit margins. Management strategy—including allocation of resources to develop products with high gross profit margins—is necessary.


Creating Businesses that Generate High Gross Profit Margins Is the Key to Generating Cash Flow

TSE Tokyo Price Index TOPIX

Creating Businesses that Generate High Gross Profit Margins Is the Key to Generating Cash Flow