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.

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

Electing Outside Directors as Board Chair Is Direct Path to Making Outside Directors More Effective

The Reason for No Improvement in ROE Was that the past 3 Years Lacked a Shareholder Perspective

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

To Raise the P/B of Listed Companies, the ROE of Half of Them Must Be Lifted Above the Threshold

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

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>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.</li>
<li>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.</li>
<li>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.</li>
</ul>


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.


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

TSE Tokyo Price Index TOPIX

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