toyota motor corporation (tmc) fy2011. tmc group companies are toyota lexus scion daihatsu hino...

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

= Current assets / Current liabilities=11829755/10790990=1.10

2010

= Current assets / Current liabilities=13073604/10686214=1.22

Quick ratio

2011

= Total quick assets / Current liabilities=9402175/10790990=0.871

2010

= Total quick assets / Current liabilities=10507783/10686214=0.98

Cash ratio

2011

= Total cash assets / Current liabilities=3510018/10790990 =0.33

2010

= Total cash assets / Current liabilities=4051635/10686212=0.38

Net working capital

2011

= Current assets - Current liabilities=11829755 - 10790990 =1038765

2010

= Current assets - Current liabilities=13073604 - 10686214=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

= Net revenues / Inventories=18993688/1304242=14.56

2010

= Net revenues / Inventories=18950973/1422373=13.32

Inventory turnover in days

2011

= 365 / Inventory turnover=365/14.56=25

2010

= 365 / Inventory turnover=365/13.32=27

Debtors turnover ratio

2011

= Net revenues ÷ Trade accounts and notes receivable, less allowance for doubtful accounts=18993688/1449151=13.11

2010

= Net revenues ÷ Trade accounts and notes receivable, less allowance for doubtful accounts=18950973/1886273=10.05

Average collection period

2011

= 365 / Debtors turnover=365/13.11=28

2010

= 365 / Debtors turnover=365/10.05=36

Creditors turnover ratio

2011

= Net revenues / Accounts payable=18993688/1503072=12.64

2010

= Net revenues / Accounts payable=18950973/1956505 =9.69

Average payment period

2011

= 365 / Payables turnover=365/12.64=29

2010

= 365 / Payables turnover=365/9.69 =38

Working capital turnover ratio

2011

= Net revenues / Net working capital =18993688/1038765=18.28

2010

= Net revenues / Net working capital =18950973/2387390 =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

= 100 × Gross profit / Net revenues= 100 x 3637448 / 18993688= 19.15%

2010

= 100 × Gross profit / Net revenues= 100 x 3691778 / 18950973= 19.48%

Operating profit margin

2011

= 100 × Operating income (loss) / Net revenues= 100 x 468279 / 18993688= 2.46%

2010

= 100 × Operating income (loss) / Net revenues= 100 x 147516 / 18950973= .78%

Net profit margin

2011

= 100 × Net income (loss) / Net revenues= 100 x 408183 / 18993688= 2.14%

2010

= 100 × Net income (loss) / Net revenues= 100 x 209456 / 18950973= 1.11%

Return on equity

2011

= 100 × Net income (loss) / shareholders’ equity= 100 x 408183 / 10332371= 3.95%

2010

= 100 × Net income (loss) / shareholders’ equity= 100 x 209456 / 10359723= 2.02%

Return on assets

2011

= 100 × Net income (loss) / Total assets= 100 x 408183 / 29818166= 1.37%

2010

= 100 × Net income (loss) / Total assets= 100 x 209456 / 30349287= 0.69%

The BIG THREE comparison

Comparisonwith 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%

Comparisonwith major competitors

Activity analysis Toyota GM Volkswagen

Inventory Turnover 14.56 8.7 5.6

Inventory Turnover in Days 25 xx xx

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 Ratio 15.19 18.0 5.77

Comparisonwith 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