TOYOTA-INDUS CORPORATION PAKISTAN

FINANCIAL STATEMENTS ANALYSIS for the year ended June 30, 2011
Profitability Analysis
1. Profitability Relationship with Assets
R.O.A = EBIT / T.A. *100
= 4,057,159,000 / 26,834,618,000 *100 = 15.12%
Trend Analysis:
Year
Return on Assets

2011
15.12%

2010
19.6%

2009
10.01%

2008
25.90%

2007
27.12%

Return On Assets
30

ROA (%age)

25
20
15

27.12

25.9

10

19.6
15.12

10.01

0
2007

2008

2009

2010

2011

Explanation:The profitability ratio shows that Toyota-Indus is producing Rs.15.12 on every 100
rupees of assets.
*EBIT includes interest, amount of which was calculated by adding some items from Finance Costs.
2. Profitability Relationship with Sales
Return on Sales
i.

G.P. Margin = G.P / Sales *100

= 4,089,135,000 / 61,702,677,000 *100 = 6.63%

Trend Analysis:
Year
Gross profit margin(%)

2011
6.63%

2010
8.08%

2009
6.14%

2008
9.29%

2007
11.37%

Gross Profit Margin

12

GP Margin (%age)

10
8
6

11.37
9.29

8.08
6.14

6.03

2
0
2007

2008

2009

2010

2011

The G.P. Margin shows that the company is generating Rs. 6.63 on every
sale of Rs. 100.
ii.

N.P. Margin = N.P. / Sales *100

= 2,743,384,000 / 61,702,677,000 *100 = 4.45%

Trend Analysis:
Year
Net Profit Margin (%)

2011
4.45

2010
5.73

2009
3.66

2008
5.53

2007
7.03

Net Profit Margin

8

N.P Margin (%age)

7
6
5
4

7.03

5.73

5.53

4.45

3.66

1
0
2007

2008

2009

2010

2011

The N.P. Margin shows that the company is having Rs. 4.45 of profit on
sale of every Rs. 100.
3. Profitability Relationship with Equity
i.

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

Trend Analysis:
Year
Return on Equity (%)

2011
19.43

2010
27.36

2009
13.45

2008
24.28

Return On Equity
40
35

ROE (%age)

30
25
20
15

34.13
27.35

24.28

10

19.43
13.45

5
0
2007

2008

2009

2010

2011

2007
34.13

The RoE Margin shows that there is Rs. 19.43 of profit available for
equity of every Rs.100.
Return on Common Stockholders Equity

ii.

RCShE = N.P. / Paid-up Capital

= 2,743,384,000 / 78,600,000 = 34.90 (rupees)
Trend Analysis:
Year
Earnings per Share(Rs)

2011
34.90

2010
43.81

2009
17.62

2008
29.15

2007
34.93

EPS (%age)

Earning Per Share

50
45
40
35
30
25
20
15
10
5
0

43.81
34.93

34.9

29.15
17.62

2007

2008

2009

2010

2011

The RCShE Margin shows that there is Rs.34.90 earnings per share.
Liquidity Analysis
1. Current Ratio
C.R. = Current Assets / Current Liabilities
= 22,587,737,000 / 12,260,958,000 = 1.84 x
Trend Analysis:
Year
Current Ratio

2011
1.84:1

2010
1.67:1

2009
1.69:1

2008
2.56:1

2007
1.83:1

Current Ratio
3

Current Ratio

2.5
2
1.5
2.56
1

1.83

1.69

1.67

1.84

2009

2010

2011

0.5
0
2007

2008

2. 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:
Year
Quick Ratio

2011
1.38:1

2010
1.51:1

2009
1.27:1

2008
1.85:1

Quick Ratio

Quick Ratio
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0

1.85
1.43

2007

1.27

2008

2009

1.51

1.38

2010

2011

2007
1.43:1

Leverage Analysis
1. Debt Ratio
D.R. = Total Liabilities / Total Assets
= 12,714,970,000 / 26,834,618,000 = 0.47 x
Trend Analysis:
Year
Debt Ratio

2011
0.47:1

2010
0.53:1

2009
0.50:1

2008
0.31:1

2007
0.48:1

Debt Ratio
0.6

Debt Ratio

0.5
0.4
0.3
0.2

0.48

0.5

0.53

2009

2010

0.47

0.31
0.1
0
2007

2008

2011

2. Time Interest Earned

T.I.E = EBIT / Interest
= 4,057,159,000 / 45,704,000 = 89 x (approx)
3. Debt to Equity Ratio
D.E.R = Long term Debt / Common Equity
There is currently no long-term debt on Toyota-Indus so their debt to equity ratio is
0:1.
Asset Management Analysis
1. Inventory Turnover Ratio
I.T.O = C.G.S / Avg. Inventory
= 57,613,542,000 / 5,444,209,500 = 11 x

No. of Days = 360 / 11 = 33 days

Trend Analysis:
Year
Stock Turnover Ratio

2011
11x

2010
12x

2009
11x

2008
14x

2007
10x

Inventory Turnover Ratio

16

Inv. Turnover ratio

14
12
10
8

14

10

11

12

11

2009

2010

2011

2
0
2007

2008

2. Total Asset Turnover Ratio

T.A.T/O. = Sales / Total Assets
= 61,702,677,000 / 26,834,618,000 = 2.3 x
Trend Analysis:
Year
T. Assets Turnover Ratio

2011
2.3:1

2010
2.21:1

2009
1.83:1

2008
3.01:1

2007
2.49:1

Total Asset Turnover Ratio

T. Asset Turnover Ratio

3.5
3
2.5
2
1.5
1

3.01
2.49
1.83

2.21

2.3

2010

2011

0.5
0
2007

2008

2009

3. Avg. Fixed Asset Turnover Ratio

F.A.T/O.R. = Sales /Avg. Fixed Assets
= 61,702,677,000 / 3,775,021,500 = 16.34 x
Trend Analysis:
Year
Avg. F Asset Turnover

2011
16.34x

2010
16.56x

2009
9.50x

2008
13.52x

Average Fixed Asset Turnover

Avg. F. Asset Turnover Ratio

25
20
15
10

20.5
13.52

16.56

16.34

2010

2011

9.5

0
2007

2008

2009

4. 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

2007
20.50x

Trend Analysis:
Year
Debt Collection Period

2011
9 days

2010
10 days

2009
14 days

2008
9 days

2007
6 days

Debt Collection Period

16
14
12

Days

10
8

14

6
9

10

2010

2011

2
0

2007

2008

2009

Peer Group Analysis / Cross- Sectional Analysis

Analysis Type

Toyota-

Suzuki

Honda

Peer Group Average

Indus
Return on Assets

15.12%

5.93%

3.76% (loss)

1.085%

Return on Equity

19.43%

5.19%

17.8% (loss)

6.035%(loss)

Current Ratio

1.84x

2.32x

0.67x

1.095x

Quick Ratio

1.38x

0.70x

0.15x

0.425x

Debt Ratio

0.47x

0.34x

0.84x

0.59x

Time Interest Earned

89x

77x

2.61x

37.19x

Inventory T/O Ratio

11x

3.9x

1.2x

2.55x

T. Assets T/O

2.3x

2.3x

2.1x

2.2x

F. Assets T/O

14.6x

11.18x

4.5x

7.84x

Analysis Type

Toyota-Indus

Peer Group Average

Return on Assets

15.12%

1.085%

16
14

ROA (%age)

12
10
8

15.12

6
4
2
1.085

0
Toyota

Peer Group Average

Analysis Type

Toyota-Indus

Peer Group Average

Current Ratio

1.84:1

1.495:1

2
1.8
1.6

Current Ratio

1.4
1.2
1

1.84

0.8

1.495

0.6
0.4
0.2
0
Toyota

Peer Group Average

Analysis Type

Toyota-Indus

Peer Group Average

Quick Ratio

1.38:1

0.425:1

1.6
1.4

Quick Ratio

1.2
1
0.8
0.6

1.38

0.4
0.425

0.2
0
Toyota

Peer Group Average

Analysis Type

Toyota-Indus

Peer Group Average

Debt Ratio

0.47:1

0.59:1

0.7
0.6

Debt Ratio

0.5
0.4
0.3
0.2

0.59
0.47

0.1
0
Toyota

Analysis Type
Time Interest Earned

Peer Group Average

Toyota-Indus Peer Group Average

89x

37.19x

100
90
Time Interest Earned

80
70
60
50
40

89

30
20

37.19

10
0
Toyota

Peer Group Average

Analysis Type

Toyota-Indus

Peer Group Average

Inventory Turnover

11x

2.55x

12

Stock Turnover Ratio

10
8
6

11

4
2
2.55
0
Toyota

Peer Group Average

Analysis Type

Toyota-Indus

Peer Group Average

T Asset Turnover

2.3x

2.2x

2.32

Total Asset Turnover

2.3
2.28
2.26
2.24
2.22

2.3

2.2
2.18
2.2

2.16
2.14
Toyota

Peer Group Average

Analysis Type

Toyota-Indus

Peer Group Average

F Asset Turnover

14.6

7.84

16

Fixed Asset Turnover

14
12
10
8

14.6

6
4

7.84

2
0
Toyota

Peer Group Average