The weakening of the yen will have different consequences for the profits of Japanese companies depending on their size, according to estimates from Mizuho Research & Technologies.
While a weaker yen will increase regular profits by 1.9% in fiscal 2024 for large companies with capital of ¥1 billion or more, it is expected to have a negative impact of 1.3% for small companies with capital from ¥10 million to ¥100 million. , the estimates showed.
The difference apparently stems from the inability of small businesses to offset rising import costs with their small-scale exports and direct investments abroad, which can benefit from the weaker yen. The research firm said it believes the weakening of the yen could be a factor behind a widening profit gap between large and small companies. result.
