Taro's Blog

Japanese media often lack understanding of retained earnings (内部留保) and mislead their readers with a distorted perception.

企業の内部留保、６００兆円　１２年連続で過去最高―投資や人件費、活用に課題・２３年度末 (Retained earnings reach 600 trillion yen, the highest level in 12 consecutive years – Issues remain regarding investment, labor costs, and utilization – end of fiscal year 2023)

They portrayed it as the cash in the assets in the balance sheet. Wrong. In the article above, the writer suggested that there were issues with investment, labor costs, and utilization. The writer was simply ignorant. It simply indicates that a corporation has consistently made a profit in the past years. Mr Sugawara (脱・税理士スガワラくん) warns us with his YouTube video.

ネットの記事やテレビの解説に騙されないでください！内部留保の本当の意味を教えます！ (Don’t be fooled by online articles or TV commentary! We’ll tell you the true meaning of retained earnings!)