1. TOYOTA MOTOR CORPORATION (TMC)
FY2011

2. TMC group companies are
Toyota
Lexus
Scion
Daihatsu
Hino Motors, Ltd
DENSO
Toyota Industries
Fuji Heavy Industries (16.5%)
Toyota Financial Service

3. 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

4. Headquarters, Toyota City

5. Consolidated Financial Statements

9. Liquidity analysis
Liquidity ratios measure the company's ability to meet its short-term obligations.
Current ratio
Quick ratio
Cash ratio

10. Current ratio
2011 = Current assets / Current liabilities = / =1.10
2010 = Current assets / Current liabilities = / =1.22

11. Quick ratio
2011 = Total quick assets / Current liabilities = / =0.871
2010 = Total quick assets / Current liabilities = / =0.98

12. Cash ratio
2011 = Total cash assets / Current liabilities = / =0.33
2010 = Total cash assets / Current liabilities = / =0.38

13. Net working capital
2011 = Current assets - Current liabilities = =
2010 = Current assets - Current liabilities = =

14. 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

15. Creditors turnover ratio
Average payment period
Working capital turnover ratio

16. Inventory turnover ratio
2011 = Net revenues / Inventories = / =14.56
2010 = Net revenues / Inventories = / =13.32

17. Inventory turnover in days

18. Debtors turnover ratio
2011 = Net revenues ÷ Trade accounts and notes receivable, less allowance for doubtful accounts = / =13.11
2010 = Net revenues ÷ Trade accounts and notes receivable, less allowance for doubtful accounts = / =10.05

19. Average collection period
2011 = 365 / Debtors turnover =365/13.11 =28
2010 = 365 / Debtors turnover =365/10.05 =36

20. Creditors turnover ratio
2011 = Net revenues / Accounts payable = / =12.64
2010 = Net revenues / Accounts payable = / =9.69

21. Average payment period
2011 = 365 / Payables turnover =365/12.64 =29
2010 = 365 / Payables turnover =365/9.69 =38

22. Working capital turnover ratio
2011 = Net revenues / Net working capital = / =18.28
2010 = Net revenues / Net working capital = / =7.93

23. 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)

24. Gross profit margin
2011 = 100 × Gross profit / Net revenues = 100 x / = 19.15%
2010 = 100 × Gross profit / Net revenues = 100 x / = 19.48%

25. Operating profit margin
2011 = 100 × Operating income (loss) / Net revenues = 100 x / = 2.46%
2010 = 100 × Operating income (loss) / Net revenues = 100 x / = .78%

26. Net profit margin
2011 = 100 × Net income (loss) / Net revenues = 100 x / = 2.14%
2010 = 100 × Net income (loss) / Net revenues = 100 x / = 1.11%

27. Return on equity
2011 = 100 × Net income (loss) / shareholders’ equity = 100 x / = 3.95%
2010 = 100 × Net income (loss) / shareholders’ equity = 100 x / = 2.02%

28. Return on assets
2011 = 100 × Net income (loss) / Total assets = 100 x / = 1.37%
2010 = 100 × Net income (loss) / Total assets = 100 x / = 0.69%

29. The BIG THREE comparison

30. 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%

31. Comparison with major competitors
Activity analysis
Toyota GM
Volkswagen
Inventory Turnover
14.56
8.7
5.6
Inventory Turnover in Days 25 xx
Debtors Turnover Ratio
13.11
15.5
12.4
Average Collection Period 28
Creditors Turnover Ratio
12.64
Average Payment Period 29
Working Capital Turnover Ratio
15.19
18.0
5.77

32. 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