Japan's ROE Slumps Amid Record Profits Due to Weak Yen

Corporate Japan's return on equity (ROE) stalled in fiscal year ended March despite record profits, due to the weak yen increasing the value of equity in overseas subsidiaries.

The ROE at Japan's listed companies fell from previous years as the higher values of overseas units at trading houses and beyond led to translation adjustments ballooning from foreign investments.

General traders like Itochu and Mitsui & Co. saw significant increases in their equity due to the weak yen, making it difficult for companies to maintain a high ROE.