Toyota Motor Corporation Essay

2056 Words Feb 16th, 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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2. Financial Information
Toyota Motor Corporation has broken their financial records for the last few years running. After taking a good look at their Financial Statements, there is no reason to suspect that they won't continue this streak of amazing success. Toyota has successfully planned their future with new automobile plants in several different countries, joint production agreements, and tie ups with several different companies. While these agreements are promising for the future, Toyotas finances are already in order and as long as they keep things constant financially, they will return record setting numbers for the long term future as well. (Toyota Motor Corporation, 2006)

2.1. Financial Analysis
Toyota's financial statements are a strong statement on what lurks in their future, and confirmed after further analysis. Toyota's has a current ratio of 1.07, which is slightly below the industry average of 1.8, but due to their latest acquisitions of a couple of companies in different countries, this is nothing to be alarmed about. (Toyota Motor Corporation, 2006). Toyota's inventory turnover ratio happens to be one of their keys to success. As mentioned previously, the automobile has been plagued by the decrease in growth in proportion to its past. With that said, Toyota had another record breaking year for sales. Toyota has an inventory turnover ratio of 12.37, which is well above the industry average of 8.2. (Toyota Motor Corporation,
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