Toyota Financial Analysis Essay

 PBUS 03 (2012) NPU BY: Kavita, Danish, Rick * *Comprises of 3 ellipse *Heart of customer *Heart of product *technological advancement and opportunities that lies ahead * *1933: Automobile Department is established at Toyoda Automatic Loom Works, Ltd. *1934: Created its first product, the Type A engine *1936: Built first passenger car, the Toyota AA. *1937: Toyota Motor Co. , Ltd. is established. *1950: Company faces a financial crisis; Toyota Motor Sales Co. , Ltd. is established. *1982: Toyota Motor Co. , Ltd. and Toyota Motor Sales Co. , Ltd. are merged into Toyota Motor Corporation. *1988: Toyota Motor Manufacturing, USA, Inc. present TMMK) begins production. *2004: The Toyota Partner Robot is publicly unveiled. *Mission Statement “To attract and attain customers with highvalued products and services and the most satisfying ownership experience in America. ” * *Vision Statement *Founder: Japan “To be the most successful and respected car company in America. “ * Kiichiro Toyoda in August 28,1937 * Toyota headquarters is in Toyota City, *Location: *Key people: * Fjio Cho (Chairman) * Akio Toyoda (President) and CEO * *80% of Toyotas sold in the last 20 years are still on the road today. *Toyota has won more Total Quality Awards than any other automaker. Many Toyota vehicles are actually manufactured in America. *Toyota has the highest owner loyalty of any automaker in the world. *Toyota earned the top spot in Interbrand’s 2011 ranking of the “Best Global Green Brands. *Toyota ranked first on the list of the top 50 brands, based on consumer and expert evaluations in 2011. * *Area Served: Worldwide *Employees: 324,747 (as of 2012) *51 manufacturing companies in 26 countries *First Toyota retail dealership was opened in 1957 in Hollywood, CA and it was called Toyota Motor Sales, USA, Inc. *Today, Toyota has 7 factories in the U. S. ,15 in Japan, *9 Toyota Models Build in the U.

S. *200,000: U. S. Jobs Created and factories in 13 other countries around the world. * * Toyota is Publicly traded on the exchanges under company code * TYO * NYSE:TM * LSE:TYT * Toyota is the 9th Largest company in the world by revenue. * 1. 7 Million+: Vehicles Sold Last Year * 1 Million+: Hybrids Sold in the U. S. * $24. 9Billion: U. S. Purchasing Last Year * $1 Million: Hourly Spending on R&D * $18 Billion: Direct U. S. Investment * *Automobiles: revenue * Auto motive business accounted for 90% of *Finance: * Finance Toyota Financial services Corporation provides financing to Toyota customers. *Robotics: Toyota has been developing multitask robots destined for elderly care, manufacturing, and entertainment. *Other 10% housing, telecommunication, Biotechnology and Robotics. * Revenue : 18. 583 trillion Yen(2012) *BALANCE SHEET OF THE TOYOTA Calculated in thousand TOYOTA Period Ending Assets Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets 30-Mar-12 30-Mar-11 30-Mar-10 20,405,000 5,327,000 88,000,000 19,713,000 6,275,000 149,720,000 141,364,000 75,769,000 5,600,000 372,452,000 359,775,000 7,985,000 324,800,000 100% 25,105,000 17,246,000 78,403,000 15,737,000 6,243,000 142,734,000 132,933,000 76,124,000 7,823,000 2% 19,967,000 23,394,000 75,859,000 15,222,000 5,472,000 139,914,000 105,241,000 71,820,000 5% 4% 24% 5% 2% 40% 38% 20% TOYOTA TOYOTA * * This is the comparison between TM and FORD on the balance sheet Period Ending Assets Current Assets Cash And Cash Equivalents Short Term Investments 0-Mar-12 31-Dec-11 20,405,000 15,327,000 5% 4% 17,148,000 18,618,000 10% 10% Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets – 88,000,000 19,713,000 6,275,000 149,720,000 141,364,000 75,769,000 24% 5% 2% 40% 38% 20% – 8,565,000 5,901,000 50,232,000 72,912,000 35,209,000 100,000 – 5% 3% 28% 41% 20% 0% 3% 8% 100% 5,600,000 372,452,000 2% 100% ,770,000 15,125,000 178,348,000 Period Ending Liabilities Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill Total Liabilities – 30-Mar-12 31-Dec-11 51,096,000 80,106,000 11,961,000 143,163,000 73,422,000 10,350,000 11,044,000 6,273,000 14% 22% 3% 38% 20% 3% 3% 2% – 63,093,000 35% 63,093,000 99,488,000 35% 56% 696,000 43,000 0% 0% 237,979,000 64% 163,320,000 92%

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Period Ending Stockholders’ Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity Net Tangible Assets – 30-Mar-12 0% 4,825,000 144,809,000 -13,800,000 6,691,000 -14,324,000 128,201,000 128,201,000 1% 39% -4% 2% -4% 34% 34% 31-Dec-11 0% 38,000 12,985,000 -166,000 20,905,000 -18,734,000 15,028,000 14,928,000 0% 7% 0% 12% -11% 8% 8% * * Income Net Revenue COGS Gross Profit Operating Expense Operating Income Other ncome EBIT Taxes 2008 262,394 (204,136) (24,938) 22,661 1665 24,326 17,924 2009 2010 2011 2012 FORD 208,995 203,686 228,427 226,106 136,264 (177,832) (171,663) (192,252) (192,188) (113,345) 22,919 (25,805) (22,782) (22,972) (22,381) (15,976) (4693) (1012) (5705) (4695) 1586 1547 3133 2625 5632 1143 6774 5598 4327 940 5267 4481 6943 1738 8,681 (11,541) Net Income 20,213 * Profitability Net Profit Margin EBIT Margin Gross Profit Margin Return on Assets Return on Equity 2008 6. 53 9. 27 22. 20 5. 29 14. 47 2009 -2. 13 -2. 73 14. 91 -1. 50 -4. 4 2010 1. 11 1. 54 15. 72 0. 69 2. 02 2011 2. 15 2. 97 15. 84 1. 37 3. 95 2012 1. 53 2. 33 17. 6 0. 94 2. 72 FORD 14. 06 6. 37 16. 82 2. 63 1. 99 * Asset Mgmt Total Asset Turnover Fixed Asset Turnover Average Collection Period Inventory Turnover 2008 0. 81 3. 30 2009 0. 71 2. 71 2010 0. 62 2. 69 2011 0. 64 2. 92 2012 0. 61 3. 0 FORD 0. 8 5. 6 27. 94 24. 42 35. 83 27. 47 11. 82 11. 28 11. 58 12. 19 11. 2 15. 7 * Liquidity Current Ratio Cash Ratio Quick Ratio 2008 1. 01 0. 14 0. 86 2009 1. 07 0. 23 0. 93 2010 1. 22 0. 17 1. 09 2011 1. 10 0. 9 0. 98 2012 1. 05 FORD 1. 6 0. 80 1. 5 * Debt Management Debt Ratio Debt to Equity Ratio Avr Payment Period Interest Coverage Ratio Equity Multiplier 2008 0. 63 1. 73 2009 0. 65 1. 89 2010 0. 66 1. 93 2011 0. 65 1. 89 2012 FORD 1. 085 6. 035 38. 95 52. 88 26. 78 -11. 96 44. 10 8. 73 33. 85 19. 19 2. 73 2. 89 2. 93 2. 89 * DuPont Net Profit Margin Total Asset Turnover Equity Multiplier ROE 2008 6. 53% 0. 81 2009 -2. 13% 0. 71 2010 1. 11 0. 62 2011 2. 15 0. 64 2012 2. 20 0. 61 FORD 14. 83 0. 8 2. 73 14. 47 % 2. 89 -4. 34% 2. 93 2. 02 2. 89 3. 5 2. 02 2. 72 0. 16 1. 99 * *Strength *Weakness *Opportunity *Threat * *Size and Brand *Innovation *Lean Manufacturing *Integrated Supply Chain *Organization Culture * *Large Size *Organization Culture *Recalls *Decreasing market share * *Emerging Market *Changing consumer preferences * *Exchange Rate *Govt Regulations *Consumer activism *High Gas price *Complexity of product *Toyota is a leading carmaker and is just recovering from a bad patch. But their current performance trend shows that they will soon be back to the top position. * *