Toyota-Indus Corporation

Toyota-Indus Corporation
Financial Statement Analysis
1. Profitability Analysis
i.

Return On Assets
R.O.A = EBIT / T.A. *100
= 4,057,159,000 / 26,834,618,000 *100 = 15.12%

Trend Analysis

Cross-Section Analysis

ROA (%age)

30

16

25

14

20

12
10

15

27.12

25.9

10

19.6
15.12

15.12

6
4

10.01

0
2007

2008

2009

2010

2011

1.085

0
Toyota

Year
Return on
Assets

2011
15.12%

2010
19.6%

2009
10.01%

2008
25.90%

2007
27.12%

Peer Group Average

Analysis Type

Toyota-Indus

Peer Group Average

Return on Assets

15.12%

1.085%

Return on Sales
a) Gross Profit Margin
G.P. Margin = G.P / Sales *100
= 4,089,135,000 / 61,702,677,000 *100 = 6.63%

Trend Analysis
12
10
GP Margin (%age)

ii.

8
6

11.37
9.29

8.08
6.14

6.03

2
0
2007

2008

2009

2010

2011

Year

2011

2010

2009

2008

2007

Gross profit
margin(%)

6.63%

8.08%

6.14%

9.29%

11.37%

b) Net Profit Margin

N.P. Margin = N.P. / Sales *100
= 2,743,384,000 / 61,702,677,000 *100 = 4.45%

Trend Analysis
8
7

N.P Margin (%age)

6
5
4
7.03
3

5.73

5.53

4.45

3.66

1
0
2007

2008

2009

2010

2011

Year

2011

2010

2009

2008

2007

Net Profit Margin

(%)

4.45

5.73

3.66

5.53

7.03

Return On Equity
RoE = N.P. / Equity *100
= 2,743,384,000 / 14,119,648,000 *100 = 19.43%

Trend Analysis
40
35
30

ROE (%age)

iii.

25
20
34.13
15

27.35

24.28
10

19.43
13.45

5
0
2007

2008

2009

2010

2011

Year

2011

2010

2009

2008

2007

Return on Equity
(%)

19.43

27.36

13.45

24.28

34.13

Return on Common Stockholders Equity

RCShE = N.P. / Paid-up Capital
= 2,743,384,000 / 78,600,000 = 34.90 (rupees)

Trend Analysis
50
45
40
35

EPS (%age)

iv.

30
25
43.81

20
34.93

34.9

15

29.15

10

17.62

5
0
2007

2008

2009

2010

2011

Year

2011

2010

2009

2008

2007

Earnings per Share(Rs)

34.90

43.81

17.62

29.15

34.93

2. Liquidity Analysis
i.

Current Ratio
C.R. = Current Assets / Current Liabilities
= 22,587,737,000 / 12,260,958,000 = 1.84 x

Trend Analysis

Cross-Section Analysis

2
1.8

Current Ratio

2.5

1.6
1.4

1.2
1.5

1
2.56

1.83

1.84

0.8
1.69

1.67

1.84

1.495

0.6
0.4

0.5

0.2
0

0
2007

2008

2009

2010

2011

Year

2011

2010

2009

2008

2007

Current Ratio

1.84:1

1.67:1

1.69:1

2.56:1

1.83:1

Toyota

Analysis Type

Current Ratio

Peer Group Average

Toyota-

Peer Group

Indus

Average

1.84:1

1.495:1

ii.

Quick Ratio / Acid-Test Ratio

Q.R. = Current Assets Inventory Prepayments / Current Liabilities
= 22,587,737,000- 5,690,052,000-18,900,000 / 12,260,958,000 = 1.38 x

Trend Analysis

Cross-Section Analysis

1.6

1.8

1.4

1.6

1.2

Quick Ratio

1.4

1.2
1
0.8

0.8

1.85
1.51

1.43

1.27

0.6

1.38
1.38

0.6
0.4

0.4

0.2

0.425

0.2

0
2007

2008

2009

2010

2011

0
Toyota

Year

2011

2010

2009

2008

2007

Quick Ratio

1.38:1

1.51:1

1.27:1

1.85:1

1.43:1

Peer Group Average

Analysis Type

Toyota-Indus

Peer Group Average

Quick Ratio

1.38:1

0.425:1

3. Leverage Analysis
i.

Debt Ratio
D.R. = Total Liabilities / Total Assets
= 12,714,970,000 / 26,834,618,000 = 0.47 x

Trend Analysis

Cross-Section Analysis

Debt Ratio

0.6

0.7

0.5

0.6

0.4

0.5
0.4

0.3
0.53

0.5

0.48

0.47

0.3

0.2
0.2

0.31

0.59
0.47

0.1

0.1
0
2007

2008

2009

2010

2011

Year

2011

2010

2009

2008

2007

Debt Ratio

0.47:1

0.53:1

0.50:1

0.31:1

0.48:1

0
Toyota

Peer Group Average

Analysis Type

Toyota-Indus

Peer Group Average

Debt Ratio

0.47:1

0.59:1

ii.

Time Interest Earned

T.I.E = EBIT / Interest
= 4,057,159,000 / 45,704,000 = 89 x

Cross-Section Analysis
100
90
80
70
60
50
40

89

30
20

37.19

10
0
Toyota

Peer Group Average

Analysis Type

Toyota-Indus

Peer Group Average

Time Interest Earned

89x

37.19x

4. Asset Management Analysis

i.

Inventory Turnover Ratio

I.T.O = C.G.S / Avg. Inventory
= 57,613,542,000 / 5,444,209,500 = 11 x

Trend Analysis

Cross-Section Analysis

16
12

Inv. Turnover ratio

14
12

10

10

8
6
4

14
11

10

12

11

4
2

2.55

0
2007

Year
Stock
Turnover
Ratio

11

2011
11x

2008

2010
12x

2009

2009
11x

2010

2008
14x

2011

2007
10x

Toyota

Peer Group Average

Analysis Type

Toyota-Indus

Peer Group Average

T Asset Turnover

11x

2.55x

ii.

Total Asset Turnover

T.A.T/O. = Sales / Total Assets
= 61,702,677,000 / 26,834,618,000 = 2.3 x

Trend Analysis

Cross-Section Analysis

3.5

2.32
2.3

T. Asset Turnover Ratio

2.28
2.5

2.26

2.24

1.5

2.22

3.01
2.49

2.21

2.3

1.83

2.3

2.2
2.18
2.2

0.5

2.16

2.14
2007

2008

2009

2010

2011

Year

2011

2010

2009

2008

2007

T. Assets
Turnover Ratio

2.3:1

2.21:1

1.83:1

3.01:1

2.49:1

Toyota

Peer Group Average

Analysis Type

Toyota-Indus

Peer Group Average

T Asset Turnover

2.3x

2.2x

iii.

Average Fixed Asset Turnover

F.A.T/O.R. = Sales /Avg. Fixed Assets
= 61,702,677,000 / 3,775,021,500 = 16.34 x

Trend Analysis

Cross-Section Analysis

25

16

Avg. F. Asset Turnover Ratio

14
20
12
10

15

8
10

20.5
16.56

14.6

6
16.34

13.52

7.84

9.5
2

0
2007

2008

2009

2010

2011

Toyota

Year

2011

2010

2009

2008

2007

Avg. F Asset
Turnover

16.34x

16.56x

9.50x

13.52x

20.50x

Analysis Type

Peer Group Average

Toyota-Indus

Peer Group
Average

F Asset Turnover

14.6

7.84

Account Receivable Turnover Ratio

Debt collection period = Credit sales / Avg. A/c Receivable
DCP = 61,702,677,000 / 1,484,619,500 = 41
No of Days = 360 / 41 = 9 days

Trend Analysis
16
14
12
10

Days

iv.

8
14
6
10

6
2
0
2007
Year
Debt Collection Period

2008
2011
9 days

2009
2010
10 days

2010
2009
14 days

2011
2008
9 days

2007
6 days