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Toyota Company Business Report

   

Added on  2020-10-04

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Toyota Company BusinessReport
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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Scope...........................................................................................................................................1Vision & Mission........................................................................................................................1Long terms sources of finance....................................................................................................1Short term working capital..........................................................................................................3Dividend policies........................................................................................................................5Profitability Ratio........................................................................................................................5PEST and SWOT of Toyota company........................................................................................6CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
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INTRODUCTIONThe organisation is largely affected by external as well as internal factors up too muchextent. This report deals with Toyota company which is a giant of automotive manufacture. Itdeals in variety of car manufacturing to satisfy customers'. It has also diversified business inhousing, financial services as well. Toyota was formed in 28 August 1937 by Kiichiro Toyoda inJapan and is headquartered in same country. The report is based on financial ratios of 2016 and2017 years. Moreover, SWOT and PEST is conducted. In this external factors are covered whichaffects company. Mission is to attract customers with high valued products. Vision is to be mostsuccessful and respected car company. ScopeReport will help in determining the financial ability of Toyota in terms of meeting theoperational needs as well as making payments of debts there will be analysis of various ratiossuch as profitability, efficiency, gearing, capital structure as well as the risk free rate of the firm.The professional at this automotive industry will be recommended over such findings and theywill be facilitated with the adequate strategies to be made (Newman and et.al., 2017). The reportis also consists of various financial theories and the market analysis which will help them intaking the necessary steps.Vision & MissionThe motive behind this report is to make the adequate analysis over the financialcondition of Toyota as well as facilitate the professionals with appropriate advices. Theidentification of various issues will be helpful for industry to make the proper decisions.Long terms sources of financeIn accordance with the various sources of finance which in turn helpful for the businessin terms of making the adequate increment in the growth and improves the efficiency of Toyota.Therefore, in relation to this there has been analysis of various ration which will help the firm inknowing the operational efficiency (Charter ed., 2017). Capital requirement for period of morethan 5 years to 10, 15, 20 years or may be more depending on others factors. Long term offinancing can be in form of share capital, preferences capital or shares, retained earnings orinternal accruals, debentures or bonds, term loans from financial institutes, government,commercial banks, venture funding, and foreign currency. Thus, the capital structure, gearing1
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ratio and WACC will be analysed as below which will help in analysing the return the firm willhave from the investments and the risk free rate (Demos and et.al., 2017).Capital structure:PARTICULARSFORMULAS2016RATIO2017RATIOCapital structureEquity167469351.71175148121.77Debt97720659911596Interpretation: In order to analyse the capital structure of Toyota Motor Corp. which isbased on the 2 year analysis such 2016 and 2017. In the previous period the capital structure offirm is at 1.71 while in the current year it increases to 1.77. Therefore, it can be said that, in thecurrent this industry has gathered the good capital gathering as the numbers of equity has beenrisen up so it has facilitated the most favourable outcomes. It can be said that the business iscurrently on the adequate phase and will have profitable operations.Gearing ratio:PARTICULARSFORMULAS2016RATIO2017RATIOGearing ratioTotal liabilities306806621.83312353741.78Total equity1674693517514812Interpretation: In terms with the gearing ratios of both the year such as 2016 and 2017for Toyota Motor Corp. It can be said that, in the year 2016 it was 1.83 while in 2017 it hasreduced to 1.78. Thus, in the current year it has the favourable ratio as there has been incrementin the number of liability which not proportionate increase as per the numbers of equity (Tsuji,2017). It is the positive sign for the business in terms of fewer debts as well as appropriatecapital generation.Risk analysis:WACCAmountWeight of Equity0.5309Weight of Debt0.46912
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