Financial Research Essay on Toyota Moto

This paper will provide a rationale for Dick’s Sporting Goods and indicate the significant factors driving my decision as a financial manager. It will determine the profile of the investor for which the company may be a fit. A selection of at least five financial (5) ratios will be utilized. The last three years of the company’s financial data will be analyzed. A determination of the company’s financial health will be assessed. A determination of the risk level from the investor’s point of view will be assessed. Key strategies will be suggested in order to minimize the perceived risks. A recommendation will be given regarding the stock as an investment opportunity.

1. Based on your review of the most recent annual financial statements and notes only, briefly assess the company’s performance for this potential investor. (Analyze based on data from Financial reports P71, 73, 74)

"They have an excellent management team, an excellent strategy. They communicate well with shareholders. They hold themselves to a high degree of transparency. There are other company-specific things that they do well. They have very strong margins, returns and they seem very disciplined at maintaining those margins and returns. Generally speaking that should make for a good investment."

Given that Big Spenders Inc. requires professional assistance in deciding on its best option concerning investment – that is, the company needs to select between Auto Wash Bot Ltd. and Popeye’s Muscle Wash Ltd. regarding equity investment. Big Spenders Inc. would require the expertise of a Financial Analyst to conduct comparative examinations of the prospective companies (which are both into the business of car cleaning). This is to ascertain the financial potentials of the two car wash and detailing companies, namely in the area of profitability – in short, the analyst will demonstrate to Big Spenders Inc., the show it should invest in. In the regards to the aforementioned, based on the definition of the word

Today, Toyota is the world's third largest manufacturer of automobiles in terms of both unit sales and net sales. It is also the largest Japanese automotive manufacturer, producing more than 5.5 million vehicles per year, equivalent to one every six seconds. See Appendix 1 for a list of its guiding principles. Appendix 2 depicts excerpts from the company’s 2000 annual report showing their main goals for that year. The company has 12 manufacturing plants in Japan and approximately 54 manufacturing companies in 27 countries throughout the world. These plants produce vehicles and components under the Lexus and Toyota brand names and employ about one quarter of a million people worldwide. In total Toyota vehicles are marketed and sold in more than 160 countries and regions with the automotive business, including sales and finance of the vehicles, accounting for more than 90% of the company's total sales. Appendix 3 shows worldwide sales and appendix 4 shows the models produced in North American Toyota plants. North Americanization of Toyota Since the late 1980’s Toyota had made several moves that showed their commitment to what management called the North Americanization of the company. The idea was to increase car sales in the lucrative North American market by also introducing manufacturing plants that produced parts and assembled whole vehicles for

Review of Financial Research Report: This assignment is an analysis of a US publicly-traded company; its common stock could be a prospective investment.  The report is due in Week 10, in needs to be at least 5 pages, and it needs to cover the following topics:

As Ford and General Motors (GM) are two of the biggest name in the automobile industry, many investors are considering the idea of investing in these two companies. However, as many people want to get the best used of their resources, it is important to know which company is worth investing for. In line with this, this research paper aims to know the better investment option between the two companies using the different financial

The company embraces innovation to increase its financial performance and create new opprotunities for profitable growth. It produces a statemnet of financial positions which provides investors and analysts with information regarding the company’s resources and assets as well as the sources of its capital. It also shows the future earnings capacity and an indication of cash flows that may come from inventories and receivables. While catering to the needs of its customers, the company also strives to ensure the satisfaction of its investors. Maintaining attractive profits also serves as an attraction for more investors. Making its financial statemets public is one of the ways to attract potential investors. This is because the investors will be able to know if his/ her money will be well invested or whether it is worth taking the risk. The future projections of a business is one of the factors that potential investors consider before making an investment (Rowley, 2003). The investor also needs to consider his own financial situation and assess their risk tolerance levels. The mode of operation of the business should also be known in order to determine if the company observes organisational ethics in its operations. A company that is subject to public scandals related to its poor running, for example, harming the environment, is not a suitable target for investment.The company’s goals and ojectives should be in line with those of the potential investor to ensure full cooperation thereby achieving the set goals. The qualifications and skills of the people put in charge of the business should also be made public. The potential investor will therefore be able to know how qualified the workforce is. This will prevent the investor from placing his money in the hands of inexperienced and underqualified

The company I decided to research was the homebuilding company Hovnanian Enterprises. I chose to analyze this company and their financial information because I recently own shares within the company. This past summer my grandmother decided to buy stock for me as a college gift. She felt investing and starting early is important since she has been for 60 years. Up until this paper, I had no knowledge about the only company I own stock in. I decided this was the perfect opportunity to learn more about them so I can make better investing decisions in the future.

Toyota has various global branch offices in the world and it supports the company by having a strong market position. Toyota’s markets for two most recognized brands Lexus and Toyota and could be considered as great market share in different regions such as in North America, in Asia excluding Japan, in Europe, in China, and etc. This helps Toyota have a better competitive advantages and opportunities of growing in global marketplace. Toyota also concentrates on Research & Development in the global facilities in order to enhance quality of service and product functionality, thus increasing product safety. A good strength is based on the innovation of current products, development of new products and manufacturing process. This strength supports Toyota in incorporating modern attributes such as technology to current range of products and other related fields, maintaining technical and innovative leadership in its automotive

Toyota was the pinnacle of quality in the 1990’s. Their use of “lean production” focused on eliminating waste and non-value added steps. This provided a competitive advantage surrounding cost and quality (Harmon, 2012). Toyota was viewed as a stable company by which investors could realize positive returns. In 2009 this pattern of stability was challenged. These challenges affected the overall brand value. Table 1 outlines the historical pricing of Toyota’s stock (TM) and associated market capitalization using close out prices from the end of each fiscal year.

Currently recession is prevailing in the market so the global car sale of Toyota is showing a downward trend. Also changes in interest rates, inflation and currency rates can act both as a threat and an opportunity. Inflation rates differ from country to country for instance in Japan the inflation rate is relatively low as compared to USA. The lower the interest rate, the better its for Toyota since the

Toyota is a key player in global automotive market. Its structure constitutes if various production plants in different locations and a very strong branding which helps it capture a major market share. Like other enterprises, Toyota has several strengths and weakness which makes it what it is now. Toyota heavily invests in Research and development which helps it come up reputable product line which is spread out throughout the world because of its strengthening global distribution network however its recent product recalling, loose grip in key geographic areas and wrong allocation of resources shows that even a strong brand like Toyota has its weaknesses.

In 2015, Toyota defended their lead in sales ahead of Volkswagen (The Telegraph, 2015). Toyota developed cost advantages with their "production system", Volkswagen found it difficult to replicate such optimisation due to union pressure rife in Germany (De Moraes, 2016: 465). Furthermore, to defend their title, Toyota adopted strategies of lean manufacturing, strict supplier control and highly efficient distribution (Schonberger, 1994).

main strategy for the North American market is to aim for higher sales, while raising the proportion of locally produced automobiles. Toyota Motor Corp have reached a stage where investments made over the last several years to expand production capacity are beginning to show returns and improved profitability can be expected. Toyota’s goal is to bolster local production through additional investment, and contribute to the regional economy by expanding its operations. At present, our production capacity in North America is approximately 1.25 million units (including our joint venture with GM). However, Toyota Motor Corp plan to boost this to 1.45 million units during 2003.