Business and Financial Performance of a Company over the Past Three Years
(Toyota Motor Corporation)
Toyota Motor Corporation has been in the automobile industry over the past decades now. In order to attain favorable business and financial performance, the company is continually building solid relationships with all its stockholders, customers, business partners, suppliers, local communities, and most especially with its employees. This is also the primary reason that Toyota is strictly strengthening its corporate governance through different programs and policies in order to develop and enhance the productivity and competitiveness of the organization in the global market. Toyota’s automobile segment is focused on the design, manufacturing and selling of cars, minivans, as well as trucks, including their parts and accessories. On the other hand, the finance department is involved in the financial services related to the sale of the company’s products, so as to the leasing of automobiles and equipments. While the other departments engaged in the design, manufacturing and selling of housings, as well as information communication business.
(http://www.toyota-global.com/sustainability/csr_initiatives/corporate_governance.html)
In view thereof, Toyota has a basic operational approach that mainly focused on the prompt decision in developing international strategies and rapid operational procedures. Furthermore, Toyota has a varied in-house committees and councils who are responsible for monitoring management and operational activities through the help of various stake holders to promote transparency and to fulfill effectively the social obligations of the entire organization. This is also the main reason that Toyota has an outstanding corporate culture that makes it distinctive from the rest of international motors company in the world. It excels on problem solving, as well as in taking preventive measures in the operations. In addition, the company has the exceptional ability through its operational approach in building high quality manufacturing process. It has been strengthening the everyday operations, as well as the productivity rate of the organization. In the same manner, both the management level and the employees are simultaneously doing operations and making decisions based on the common check and balance high standard ethical procedures.
(http://www.toyota-global.com/sustainability/csr_initiatives/corporate_governance.html)
Toyota has been in the business together with its competitors such as Suzuki Motor Corporation which had sales of 2.47 trillion Japanese Yen or US $ 29.78 billion in 2010. Honda Motor Co., Ltd. acquired 8.58 trillion Japanese Yen or US $ 103.46 billion. And, Nissan Motor Co. Ltd., which had a gross income of 7.52 trillion Japanese Yen or US $ 90.66 trillion. On the other hand, Toyota Motor Corporation had sales of 18.95 trillion Japanese Yen or US $ 228.55 billion. This figure had decreased for 7.7 percent as compare to 2009’s sales, which is 20.53 trillion Japanese Yen. Toyota’s sales level in March 2010 was fairly close to the level of sales five years ago. Most of the last year’ sales of Toyota came from the home market of Japan. In 2010, this country had gross sales of 11.22 trillion Japanese Yen. Furthermore, geographically wise, the decline of the Toyota sales in 2010 occurred in Europe, where sales fell down to 25.7 percent. Subsequently, in North America, there were also lower sales of 5.67 trillion last year; there was a remarkable decrease of 7 percent as compared to 2009’s sales. The company increased its dividend from 120.00 Yen up to 140 Yen during its fiscal year of 2008.
(http://www.corporateinformation.com/Samples/SampleComparativeAnalysis.htm)
Moreover, during the past 52 weeks, the stock of Toyota Motor has terribly decreased, which was lower than its three major competitors. The market capitalization of the company is 10.11 trillion Japanese Yen or US $ 121.97 billion. The capitalization floating stock of the company is 6.77 trillion or US $ 81.59 billion. The company earned 209.46 billion Japanese Yen or 1.1 percent of sales in 2010 than 2009 that got only -2.1 percent of sales. In addition to that, the company’s return on equity in 2010 was 2.1 percent. It was much better compared to the return on equity in 2009 which was -3.7 percent. During 2010, the itemized operating profits from all divisions were 147.52 billion Japanese Yen or 0.8 percent of total sales. And, among the product lines, the financial services had the highest operating profits last year. It earned highest operating profits of 20.1 percent of over all sales. As of March 2010, the company had accounts receivable of 6.46 trillion Japanese Yen, higher than its receivable in 2009. Correspondingly, Research and Development expenses of Toyota Motor Corporation last year were about 725.35 billion Japanese Yen or equivalent to 3.8 percent of total sales. In analyzing the profitability of Toyota Motor Corporation, it is obvious that the company profit margin in 2010 was much better than its 2009 profit margin.
(http://www.corporateinformation.com/Samples/SampleComparativeAnalysis.htm)
References:
(http://www.toyota-global.com/sustainability/csr_initiatives/corporate_governance.html)
(http://www.corporateinformation.com/Samples/SampleComparativeAnalysis.htm)
Credit:ivythesis.typepad.com
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