Toyota vs. BMW: A Comparative Study of Financial Statements

2270 WordsOct 25, 200810 Pages
Toyota vs. BMW Industrial Overview The automobile industry is a fast growing and evolving industry that relates to the design, manufacturing and sale of an automobile. Automobiles in terms of the industry mostly refer to motor vehicles with engines that have internal combustion chambers. It is true that car manufacturers experience high sales to businesses and car rental companies, also called fleet sales, but consumer sales is the largest source of revenue. A point to bring up here would be the ‘parts market’. The parts market constitutes a very lucrative part of the industry. For example, a new car might cost a certain amount, but if the consumer were to buy separate parts and assemble the car, all the parts needed to construct that…show more content…
The company's premium brands in the automotive market include BMW, MINI and Rolls-Royce. The Motorcycles segment manufactures BMW brand motorcycles. The Financial Services segment specializes in services such as leasing of automobiles and providing auto loans to dealers and customers, and is also involved in other activities related to insurance. BMW M GmbH (previously: BMW Motorsport GmbH) is a subsidiary of German car manufacturer BMW AG established in May 1972 with just eight employees. BMW M, also known as M-Technik or just "M" (for Motorsport) was initially created to facilitate BMW’s racing program, which was very successful in the 1960s and 1970s. The first racing project was BMW’s 3.0 CSL; in the late 1970s the first modified street legal road cars were produced for the contracted racecar drivers as their personal vehicles. By 1988, the number of employees had risen to 400. Financial Statements for Toyota Balance Sheet Assets 2006 2005 2004 Current Assets Cash 20,013.0 19,193.0 19,466.0 Net Receivables 60,126.0 54,608.0 51,596.0 Inventories 15,281.0 13,799.0 12,168.0 Other Current Assets 4,403.0 3,787.0 4,675.0 Total Current Assets 99,823.0 91,387.0 87,905.0 Net Fixed Assets 68,281.0 60,157.0 53,968.0 Other Non-current Assets 107,837.0 93,043.0 84,731.0 Total Assets 275,941.0 244,587.0 226,604.0 Liabilities and Shareholder's Equity Current Liabilities Accounts Payable 43,276.0
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