Essay Toyota Motor Corporation

2046 Words Feb 12th, 2007 9 Pages
Toyota Motor Corporation

Table of Contents
Table of Contents ii
1. Introduction 1
1.1. History 2
2. Financial Information 3
2.1. Financial Analysis 3
3. Mergers and Acquisitions 4
4. Competition and Foreign Interests 5
5. Future Expectations 5
6. Conclusion 6

References 7

1. Introduction
Toyota, which is known as Toyota Motor Corporation is one of the most exciting names in the automobile industry today. Toyota is one of the most competitive companies globally and has enjoyed a record setting success in the last few years. In the most recent years, the global automobile industry has been plagued by high gas prices, and tougher environmental protection laws. Like all automobile manufacturers, Toyota has had its
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Toyota is impressive when it comes to their total debt to total assets ratio. Currently they have 61.1% of their debt financed, while the average for the industry is high at 85.3%. (Toyota Motor Corporation, 2006). Toyota has its own financial subsidiary and uses it to their advantage by keeping down how much debt they incur. (Toyota Motor Corporation, 2006). Toyota's return on assets is strong at 7.3, even though it is slightly below the industry average. Some of the things that fool you while looking at the financial statement only are the facts that Toyota has had some newer acquisitions that haven't had an opportunity to make their intended profit. (Toyota Motor Corporation, 2006). While nothing points to Toyota not making their planned profit, there is always that risk you run in business. Their profit margin is .95, and this would raise the red flag, but then again they just got done acquiring new assets that have yet to be able to return anything yet. (Toyota Motor Corporation, 2006). All in all, Toyota has very strong marks in their industry and has chosen to take their money, reinvest part of it, and retain the rest. They have been able to increase their retained earnings each year, payout an increasing dividend each year, and expand their market globally. Toyota has been proud to continue to offer increasing dividends to their shareholders, all while retaining earnings, and purchasing new assets. Toyota is going to continue its

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