Financial Research Essay on Toyota Moto

2432 Words10 Pages
Toyota Financial Research Report
FIN 534
March 10, 2014
Dr. Shaw

Toyota Financial Research Report
Company Overview
Toyota is currently the biggest car maker in the world. Toyota’s production model has been for long the envy of Detroit’s big three and the benchmark for the auto industry. The auto market in the US has showed signs of improvement, a sign of encouragement for the company (Toyota History: Corporate and Automotive, 2011). Toyota has invested billions of dollars to develop manufacturing capabilities and supplier networks to supply those markets. Toyota has many comparative advantages over it peers: a strong operational model that generates high margins; a strong global brand synonymous for quality and a
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Companies whose financial fundamentals are very strong make good investments portfolios. Such firms are called blue chip companies and trades very selectively on the stock markets are can be studied in depth for any investment purposes (Banz and Rolf, 1996). Such firms rarely indulge themselves in any kind of compliance issues are generally favored by investors.
Toyota Motor Corporation is one such stock that as a finance manager I would recommend to buy and hold because the firm has been in the news for all the right reasons and for its future plans of expansion with very strategic mergers and acquisitions. The firm’s product ranges especially the new line of green automotive ranges have caught the fancy of all countries and it is expected that the company will be giving a return of more than 22% to its shareholders (toyotaglobal.com).
Determine the profile of the investor for which this company may be a fit, relative to that potential investor's investment strategy.

The profile of a suitable investor for the company would be a conservative risk taker. The investor would like to buy the stock and hold it for long periods so as to partake of the dividends which are declared. The return on investments on this stock have been progressively rising the investees have been well rewarded for their strategies of buy and hold.
The term conservative investing refers to an investment style wherein the person chooses funds and

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