Financial Ratio Analysis Reoprt

Topics: Toyota, Financial ratios, Honda Pages: 6 (1738 words) Published: May 15, 2006
Company Description
Toyota Motor Corporation. The Group's principal activities are to manufacture and sell automobiles and provide financial services. The Group operates through three segments: Automotive, Financial Services and Other. Automotive segment designs, manufactures, assembles and sells passenger cars, recreational and sport-utility vehicles, minivans and trucks and related parts and accessories. Financial services segment provides financing to dealers and their customers for the purchase or lease of Toyota vehicles. Other services segment provides intelligent transport systems, information technology-based systems encompassing car multimedia systems, on-board intelligent systems, advanced transportation systems and transportation infrastructure and logistics systems. The Group sells vehicles in 140 countries and other regions. During the year 2004, the Group acquired Toyota Auto Body Co Ltd, Kanto Auto Works Ltd, Central Motor Co Ltd and PT Toyota Motor Manufacturing Indonesia.

Competitor Analysis
Toyota Motor Corporation operates within the Motor vehicles and car bodies sector. This analysis compares Toyota Motor with three other automobile manufacturers in Australasia: Mazda Motor Corporation (2005 sales of 2.70 trillion Japanese Yen [US$23.18 billion] of which 73% was Vehicles), Honda Motor Co., Ltd. (8.65 trillion Japanese Yen [US$74.39 billion] of which 81% was Automobile Business), and Nissan Motor Co Ltd (8.58 trillion Japanese Yen [US$73.76 billion] of which 95% was Automobiles). Sales Analysis

During the year ended March of 2005, sales at Toyota Motor were ¥18.55 trillion (US$159.54 billion). This is an increase of 7.3% versus 2004, when the company's sales were ¥17.29 trillion. This was the fifth consecutive year of sales increases at Toyota Motor (and since 2000, sales have increased a total of 44%). Sales of Other saw an increase that was more than double the company's growth rate: sales were up 67.5% in 2005, from ¥614.93 billion to ¥1.03 trillion. The company derives most of its revenues in its home market of Japan: in 2005, this region's sales were ¥12.00 trillion, which is equivalent to 64.7% of total sales. In 2005, sales in Japan were up at a rate that was much higher than the company as a whole: in this region, sales increased 67.5% to ¥12.00 trillion. Toyota Motor also experienced significant increases in sales in Europe (up 22.8% to ¥2.48 trillion) and Rest of the World (up 27.8% to ¥2.81 trillion) . The company currently employs 265,753. With sales of ¥18.55 trillion (US$159.54 billion) , this equates to sales of US$600,344 per employee. The sales per employee levels at the three comparable companies vary greatly, from US$434,769 to US$649,716, as shown in the following table. Some of the variation may be due to the way each of these companies counts employees (and if they count subcontractors, independent contractors, etc). Sales Comparisons (Fiscal Year ending 2005)

(trlns) Sales
Emp (US$)Largest Region
Toyota Motor18.5527.3%600,344Japan (64.7%)
Mazda Motor Corporation 2.696-7.6%649,716Japan (42.1%)
Honda Motor Co., Ltd. 8.6506.0%539,741North America (53.0%) Nissan Motor Co Ltd 8.57615.4%434,769North America (43.5%)

Recent Stock Performance

For the 52 weeks ending 12/16/05, the stock of this company was up 40.8% to ¥5,690.00 .
During the past 13 weeks, the stock has increased 19.5%.
During the 12 months ending 9/30/05, earnings per share totalled ¥354.16 per share. Thus, the Price / Earnings ratio is 16.07. Earnings per share rose 3.6% in 2005 from 2004. The 16.1 P/E ratio of this company is higher than the P/E ratio of all three comparable companies, which are currently trading between 9.6 and 12.5 times earnings. This company is currently trading at 1.00 times sales. This is at a higher ratio than all three comparable companies, which are trading between 0.26 and 0.70 times sales. Toyota Motor is trading at...

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