2. Huỳnh Phúc Nguyên 332933
Ngô Chí Trung 332940
Nhữ Đình Hoàng Nam 332958
3. 1. Introduction
2. Financial Statements of Toyota
3. Financial Statements of the competitor – Nissan
4. Changes in industry
5. Financial Ratios between Toyota and Nissan
6. Financial Ratios of Industry
7. Financial Ratios changes
8. Cash Conversion Cycle
9. Conclusion
4. Toyota is 3rd largest automotive manufacturer.
Toyota Motor Corporation is headquartered in Toyota
City, Aichi.
Toyota has annual sales of $120 Billion.
Produces ~5.5 million vehicle per year.
From 56 manufacturing plants across 6 continents.
Employs ~200.000 people.
Toyota’s headquarter in Aichi, Japan
5.
6. Years 2008 2009 2010 2013 2014 Changes
2008 - 2014
Total
Assets $32,458,320 $29,062,037 $30,349,287 $35,483,317 $41,437,473 ↑21.67%
0
10000000
20000000
30000000
40000000
50000000
20082009201020132014
Total Assets
26. 0.00
0.50
1.00
1.50
2.00
2.50
2008 2009 2010 2013 2014
Toyota
Nissan
Industry
Current ratio
Years Toyota Nissan Industry
2008 1.01 1.32 1.42
2009 1.07 1.45 1.37
2010 1.22 1.45 1.6
2013 1.07 1.66 2.05
2014 1.07 1.61 2.1
27. Quick ratio
0.00
0.50
1.00
1.50
2.00
2008 2009 2010 2013 2014
Toyota
Nissan
Industry
Years Toyota Nissan Industry
2008 0.86 1.29 0.41
2009 0.93 1.41 0.39
2010 1.09 1.40 0.58
2013 0.93 1.60 0.47
2014 0.94 1.55 0.59
28. Return on equity
-0.10
0.00
0.10
0.20
0.30
0.40
0.50
2008 2009 2010 2013 2014
Toyota
Nissan
Industry
Years Toyota Nissan Industry
2008 0.14 -0.07 0
2009 -0.04 0.01 0
2010 0.02 0.08 0.41
2013 0.08 0.08 0.2
2014 0.13 0.09 0.14
29. Financial Ratios
Liquidity Ratios Company 2008 2014 Note
Current ratio
Toyota
Nissan
1.012
1.0324
1.071
1.608
Toyota < Nissan
Quick ratio
Toyota
Nissan
0.859
1.288
0.942
1.551
Toyota < Nissan
Cash ratio
Toyota
Nissan
0.136
0.159
0.139
0.119
Financial leverage ratios
Debt ratio
Toyota
Nissan
0.614
0.714
0.633
0.692
Time interest earned
Toyota
Nissan
(52.85)
(6.47)
(124.35)
23.57
Toyota ↓ 71.5
30. Asset management ratios
Inventory turnover
Toyota
Nissan
11.20
49.83
10.55
25.30
Days' sales in inventory
Toyota
Nissan
32.58
7.32
34.60
14.43
Receivables turnover
Toyota
Nissan
5.77
3.11
4.32
1.80
Toyota > Nissan
Days' sales in receivables
Toyota
Nissan
63.25
117.25
84.51
202.56
Toyota < Nissan
Total asset turnover
Toyota
Nissan
0.76
0.82
0.59
0.67
Profitability ratios
Profit margin
Toyota
Nissan
0.07
(0.03)
0.07
0.04
Toyota > Nissan
Return on assets
Toyota
Nissan
0.05
(0.02)
0.04
0.03
Toyota > Nissan
Return on equity
Toyota
Nissan
0.14
(0.07)
0.13
0.09
31. 0.0
20.0
40.0
60.0
80.0
100.0
2008 2009 2010 2013 2014
Days Inventory
Outstanding (DIO)
Days Sales Outstanding
(DSO)
Days Payable
Outstanding (DPO)
Cash Conversion cycle
Days
Years
Days
Inventory
Outstanding
(DIO)
Days Sales
Outstanding
(DSO)
Days Payable
Outstanding (DPO)
Cash
Conversion
cycle
2008 29.31 56.87 31.34 54.85
2009 30.11 72.01 34.02 68.1
2010 31.16 89.82 39.53 81.45
2013 36.58 88.89 43.85 81.63
2014 36.82 55.17 42.22 49.77
32. 1. Based on the Income statement (net income) from
2008-2014, Toyota was more profitable than Nissan
2. According to Financial Ratios of both companies:
• Liquidity Ratios: Toyota’s ability to pay off short-
term obligation was less than Nissan‘s and
Industry’s.
• Solvency Ratios: Nissan has the ability to meet long-
term obligations much better than Toyota.
• Asset Management Ratios: Totally, Nissan was
more successful than Toyota in managing their asset
and generate revenue.
CONCLUSION
33. Profitability Ratios:
a) Profit from every sales dollar of Toyota
(profit margin = 0.07) was greater than
Nissan (profit margin = 0.04)
b) Toyota's assets were generating income
better than Nissan‘s (0.04 versus 0.03)
c) Profit of Toyota generated with each dollar
of shareholders' equity was greater than
Nissan (0.13 versus 0.09)
