Of the 415 subsidiary companies, 183 belonged to vertical keiretsu and 150 to horizontal keiretsu.
One possible explanation for this similarity is that these subsidiary companies, large enough to be listed on the stock exchange, have such high-level positions in the parts suppliers' hierarchies that they do not have to sacrifice their own profitability to raise their parent firm's profitability.
Parent firms tended to have smaller cost-of-goods-sold-to-sales ratios than did subsidiary companies.
There were no significant differences in cost-of-goods-sold over sales and selling and administrative expense-to-sales ratios between parent and subsidiary companies in horizontal keiretsu.
Parent firms in general have a lower asset turnover ratio (total sales over total assets) than do subsidiary companies.
One possible explanation may be that these parent companies deal mainly with large subsidiary firms that have enough cash flow, whereas subsidiary companies deal with smaller firms that need longer credits.
sales over inventory) of parent firms was generally similar to that of subsidiary companies.
sales over accounts receivable) of subsidiary companies is generally expected to be lower than that of parent firms.