Corporate Japan's ROE projected to hit lowest level in 5 years

Country continues to lag behind US, European peers in capital efficiency

20250723N Komatsu

Komatsu expects its ROE to fall from last year as profitability takes a hit from the strong yen and U.S. tariffs. (Photo by Kensho Motowaki)

KENSHO MOTOWAKI

TOKYO -- Return on equity at Japan-listed companies is projected to slide to the lowest level in five years as cash holdings mount, with accumulated profits outpacing growth investments and shareholder returns.

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