Corporate "retained earnings" last year exceeded 475 trillion yen, a record high for eight consecutive years October 31, 6:21
Retained earnings, so-called retained earnings, left by companies exceeded 475 trillion yen last year, setting a new record high for the eighth consecutive year.
However, many companies are suffering from worsening business performance this year due to the impact of the new coronavirus, and it seems that there is a growing movement to withdraw internal reserves.
On the 30th, the Ministry of Finance announced the results of last year's "Corporate Enterprise Statistics Survey" targeting approximately 30,000 companies nationwide.
According to this, the retained earnings that companies have left as reserves, so-called "retained earnings," were 475.16.1 trillion yen last year, an increase of about 11 trillion yen from the previous year, or 2.6%. It means that it has set a new record high for 8 consecutive years.
However, this year, many companies are suffering from worsening business performance due to the effects of the new coronavirus, and it seems that there is a growing movement to withdraw internal reserves.
Deputy Prime Minister and Finance Minister Aso said at a press conference after the Cabinet meeting on the 30th, "Although it is a consequential theory, companies with strong internal reserves were physically strong enough to withstand the turmoil of the new Corona. ".
He then said, "Should internal reserves be used for capital investment and salaries?" And emphasized the idea that it is desirable that large amounts of retained earnings be used for investment.