TOYOTA MOTOR CORPORATION (TMC) FY2011

TMC group companies are

Toyota
Lexus
Scion
Daihatsu
Hino Motors, Ltd
DENSO
Toyota Industries
Fuji Heavy Industries (16.5%)
Toyota Financial Service
 Overview
Founded: August 28, 1937
Headquarters: Toyota city Aichi, Japan
One of the largest automobile manufacturers
No.1 global automaker 2010
8,557,351 Units sold in 2010
Held 11% share of the total global auto market
Headquarters, Toyota City
Consolidated Financial Statements
 Liquidity analysis

Liquidity ratios measure the company's ability to

meet its short-term obligations.

Current ratio
Quick ratio
Cash ratio
 Current ratio
2011 2010

= Current assets / Current = Current assets / Current

liabilities liabilities
=11829755/10790990 =13073604/10686214
=1.10 =1.22
 Quick ratio
2011 2010

= Total quick assets / = Total quick assets /

Current liabilities Current liabilities
=9402175/10790990 =10507783/10686214
=0.871 =0.98
 Cash ratio
2011 2010

= Total cash assets / = Total cash assets /

Current liabilities Current liabilities
=3510018/10790990 =4051635/10686212
=0.33 =0.38
 Net working capital
2011 2010

= Current assets - Current = Current assets - Current

liabilities liabilities
=11829755 - 10790990 =13073604 - 10686214
=1038765 =2387390
 Activity Analysis
Activity ratios measure how efficiently a
company performs day-to-day tasks, such us the
collection of receivables and management of
inventory.
Inventory turnover
Inventory turnover in days
Debtors turnover ratio
Average collection period
 Creditors turnover ratio
Average payment period
Working capital turnover ratio
 Inventory turnover ratio
2011 2010

= Net revenues / = Net revenues /

Inventories Inventories
=18993688/1304242 =18950973/1422373
=14.56 =13.32
 Inventory turnover in days
2011 2010

= 365 / Inventory turnover = 365 / Inventory turnover

=365/14.56 =365/13.32
=25 =27
 Debtors turnover ratio
2011 2010

= Net revenues Trade = Net revenues Trade

accounts and notes accounts and notes
receivable, less allowance receivable, less allowance
for doubtful accounts for doubtful accounts
=18993688/1449151 =18950973/1886273
=13.11 =10.05
 Average collection period
2011 2010

= 365 / Debtors turnover = 365 / Debtors turnover

=365/13.11 =365/10.05
=28 =36
 Creditors turnover ratio
2011 2010

= Net revenues / Accounts = Net revenues / Accounts

payable payable
=18993688/1503072 =18950973/1956505
=12.64 =9.69
 Average payment period
2011 2010

= 365 / Payables turnover = 365 / Payables turnover

=365/12.64 =365/9.69
=29 =38
 Working capital turnover ratio
2011 2010

= Net revenues / Net = Net revenues / Net

working capital working capital
=18993688/1038765 =18950973/2387390
=18.28 =7.93
 Profitability analysis
Profitability ratios measure the company's
ability to generate profitable sales from its
resources (assets).
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Equity (ROE)
Return on Assets (ROA)
 Gross profit margin
2011 2010

= 100 Gross profit / Net = 100 Gross profit / Net

revenues revenues
= 100 x 3637448 / = 100 x 3691778 /
18993688 18950973
= 19.15% = 19.48%
 Operating profit margin
2011 2010

= 100 Operating income = 100 Operating income

(loss) / Net revenues (loss) / Net revenues
= 100 x 468279 / = 100 x 147516 /
18993688 18950973
= 2.46% = .78%
 Net profit margin
2011 2010

= 100 Net income (loss) = 100 Net income (loss)

/ Net revenues / Net revenues
= 100 x 408183 / = 100 x 209456 /
18993688 18950973
= 2.14% = 1.11%
 Return on equity
2011 2010

= 100 Net income (loss) = 100 Net income (loss)

/ shareholders equity / shareholders equity
= 100 x 408183 / = 100 x 209456 /
10332371 10359723
= 3.95% = 2.02%
 Return on assets
2011 2010

= 100 Net income (loss) = 100 Net income (loss)

/ Total assets / Total assets
= 100 x 408183 / = 100 x 209456 /
29818166 30349287
= 1.37% = 0.69%
The BIG THREE comparison
 Comparison
with major competitors

Profitability analysis Toyota GM Volkswagen AG

Gross Profit Margin 19.15% 17.2% 17.11%

Operating Profit Margin 2.47% 8.7% 11.4%

Net Profit Margin 2.15% 7.2% 10.7%

Return on Equity 3.95% 28.7% 32.10%

Return on Assets 1.37% 6.6% 3.08%

 Comparison
with major competitors

Activity analysis Toyota GM Volkswagen

Inventory Turnover 14.56 8.7 5.6

Inventory Turnover in
25 xx xx
Days
Debtors Turnover Ratio 13.11 15.5 12.4

Average Collection Period 28 xx xx

Creditors Turnover Ratio 12.64 xx xx

Average Payment Period 29 xx xx

Working Capital Turnover
15.19 18.0 5.77
Ratio
 Comparison
with major competitors

Liquidity Analysis Toyota GM Volkswagen

Current Ratio 1.10 1.3 1.2

Quick Ratio 0.87 0.8 0.9

Cash Ratio 0.33 xx xx