Financial Ratios Of Toyota Company

Submitted By:Arpit Panchal – 10030141025

Prabhjot Arora – 10030141047 Sandeep Rawat – 10030141070

Shweta Gupta - 10030141130

Liquidity Ratios

Current Ratio Current Ratio = Current Assets/ Current

Liabilities

Interpretation:

Year Current Assets

Current Liabilities

Current Ratio

2005 9441984.268 8225233.718 1.002762

2006 10734330.00 10018708 1.071429

2007 11789055.17 11756578.43 1.147929

Quick Ratio

Quick Ratio =Cash + Account Receivables/Current

Liabilities

Interpretation:`

Year Cash Account Receivable

s

Current Liabilities

Quick Ratio

2005 1484435.671

5061682.288

8225233.718

.79585

2006 1574368.400

5896725.28 10018708 .74571

2007 1916127.424

6560300.672

11756578.43

.72099

Cash Ratio

Cash Ratio = Cash /Current Liabilities

Interpretation:

Year Cash Current Liabilities

Cash Ratio

2005 1484435.67 8225233.718 .1804

2006 1574368.4 10018708 .1571

2007 1916127.42 11756578.43 .1629

Structural Ratios

Debt -Equity Ratio

Debt-Equity Ratio = Debt/Equity

Interpretation:

Year Short Term Debt

Long Term Debt

Equity Debt To Equity Ratio

2005 3528576.595

5013012.266

9101294.114

.93850

2006 4751730.08 5639101.36 10619830.48

.97843

2007 5878289.216

6268010.048

11854008.64

1.0245

Long Term Debt To Equity Ratio

Long Term Debt to Equity Ratio = Long Term Debt / Equity

Interpretation:

Year Long Term Debt

Equity Long term Debt TO

Equity Ratio

2005 5013012.266 9101294.114 .55080

2006 5639101.36 10619830.48 .53099

2007 626810.048 11854008.64 .52876

Debt To Asset Ratio

Debt To Asset Ratio = Short Term Debt+ Long Term Debt / Total

Assets

Interpretation:

Year Short Term Debt

Long Term Debt

Asset Debt To Asset Ratio

2005 3528576.595

5013012.266

24335011 0.374

2006 4751730.08 5639101.36 28624880 0.363

2007 5878289.216

6268010.048

32476736 0.351

Total Long Term Debt Ratio

Total Long Term Debt Ratio = Long Term Debt / Total Assets – Current

Liabilities

Interpretation:

Year Long Term Debt

Total Asset Current Liabilities

Total Long Term Debt

Ratio

2005 5013012.266

24335011 8225233.718

.311178

2006 5639101.36 28624880 10018708 .303077

2007 6268010.048

32476736 11756578.43

.302508

Current Asset To Total Debt Ratio

Current Asset To Total Ratio = Current Asset / Total Debt

Interpretation:

Year Short Term Debt

Long Term Debt

Current Asset

Current Asset To

Total Debt Ratio

2005 3528576.595

5013012.266

9441984.268

1.1054

2006 4751730.08 5639101.36 10734330.00

1.0330

2007 5878289.216

6268010.048

11789055.17

.97058

Turnover Ratios

Current Assets Turnover Ratio

Current Assets Turnover Ratio = Net Sales / Average Current

Assets

Interpretation:

Year Net Sales Avg. Current Assets

Current Asset Turnover

Ratio

2005 18551526 9441984.26 1.964791

2006 21036909 10734330.0 1.959778

2007 23948091 11789055.17 2.031383

Inventory Turnover Ratio

Inventory Turnover Ratio = Net Sales / Average

Inventory

Interpretation:

Year Net Sales Avg. Inventory

Inventory Turnover

Ratio

2005 18551526 1314090.59 14.11739

2006 21036909 1631618.16 12.89328

2007 23948091 1818697.22 13.16772

Work In Progress Turnover Ratio

Work In Progress Turnover Ratio =Cost Of Goods Sold / Avg. Work In

Progress

Interpretation:

Year Cost Of Goods Sold

Avg. WIP W.I.P Turnover

Ratio

2005 13802335.34 170345.077 81.0257

2006 15735607.93 228999.04 68.7147

2007 17841327.8 227337.152 78.4796

Finished Goods Turnover Ratio

Finished Goods Turnover Ratio = Costs Of Goods Sold / Avg. Finished

Goods

Interpretation:

Year Costs Of Goods Sold

Avg. Finished Goods

F.G Turnover Ratio

2005 13802335.34 900395.407 15.3291

2006 15735607.93 1087745.44 14.4662

2007 17841327.8 1201639.232 14.8474

Total Assets Turnover Ratio

Total Assets Turnover Ratio = Net Sales / Average Total Assets

Interpretation:

Year Net Sales Avg. Total Assets

Total Asset Turnover

Ratio

2005 18551526 24335011 .762339

2006 21036909 28624880 .734917

2007 23948091 32476736 .737392

Fixed Assets Turnover Ratio

Fixed Asset Turnover Ratio = Net Sales / Average Fixed Assets

Interpretation:

Year Net Sales Avg. Fixed Assets

Fixed Asset Turnover

Ratio

2005 18551526 14065636 1.318925

2006 21036909 15858184 1.326565

2007 23948091 17537437 1.364451

Profitability Ratios

Return on Asset Ratio

Return on Asset = Profit Before Tax/Total Asset

Interpretation:

Year Profit Before Tax

Total Asset Return on Asset Ratio

2005 2671419.744 24335011 .1097

2006 3218647.077 28624880 .1124

2007 3711954.105 32476736 .1142

Return on Equity Ratio

Return on Equity = Net Profit/Equity

Interpretation:

Year Net Profit Equity Return on Equity Ratio

2005 1168746.138 9101294.114 .128415

2006 1367399.085 10619830.48 .128759

2007 1652418.279 11854008.64 .139397

Return on Investment ratio

Return on Investment = EBIT/Total Assets

Interpretation:

Year EBIT Total Assets ROI Ratio

2005 1780946.49 24335011 .0731

2006 2103690.9 28624880 .0734

2007 2442705.28 32476736 .0752

Operating Margin

Operating Margin = Operating Income/Sales

Interpretation:

Year Operating Income

Sales Operating Margin

2005 1632534.288 18551526 .088

2006 1872284.901 21036909 .089

2007 2227172.463 23948091 .093

EBITDA Margin Ratio

EBITDA = EBITDA/Net Sales

Interpretation:

Year EBITDA Net Sales

EBITDA Margin

2005 2764177.374 18551526

14.9

2006 3323831.622 21036909

15.8

2007 33807746.469

23948091

15.9

Gross Profit Margin

Gross Margin = Profit/ Net Sales

Interpretation:

Year Gross Profit Net Sales Gross Profit Margin

2005 4749191 18551526 25.6

2006 5301301 21036909 25.2

2007 6106763 23948091 25.5

Net Profit Margin

Net Profit Margin = Profit Before Tax/ Net Sales

Interpretation:

Year Profit Before Tax

Net Sales Net Profit Margin

2005 1762394.97 18551526 9.5

2006 2082653.991 21036909 9.9

2007 2370861.009 23948091 9.9

Return on Capital Employed

Return on Capital Employed = EBIT/(Total Assets – Current Liabilities)

Interpretation:

Year EBIT Total Assets

Current Liabilities

Return on Capital Employed Ratio

2005 1780946.49

24335011 8225233.718

.11055

2006 2103690.9 28624880 10018708 .11306

2007 2442705.28

32476736 11756578.43

.11789

Time Interest Earned Ratio

Time Interest Earned Ratio = EBIT/ Interest

Interpretation:

Year EBIT Interest Time Interest Earned Ratio

2005 1780946.49 92757.63 19.2

2006 2103690.9 105184.54 20

2007 2442705.28 95792.36 25.5

Interest Coverage Ratio

Interest Coverage Ratio = EBITDA/Interest

Interpretation

Year EBITDA Interest Interest Coverage Ratio

2005 2764177.374 92757.63 29.8

2006 3323831.622 105184.54 31.6

2007 33807746.469 95792.36 39.75

Sales to Cash Ratio

Sales to Cash Ratio = Sales/Cash

Interpretation

Year Net Sales Cash Sales to Cash Ratio

2005 18551526 1484435.67

12.4973

2006 21036909 1574368.4 13.3621

2007 23948091 1916127.42

12.4981

Sales to Net Income Ratio

Sales to Net Income = Sales/Net Income

Interpretation

Year Sales Net Income Sales to Net Income Ratio

2005 18551526 1168746.138 15.873

2006 21036909 1367399.085 15.384

2007 23948091 1652418.279 14.490

EAT on Sales

EAT on Sales = EAT/Sales

Interpretation:

Year EAT Sales EAT on Sales

2005 1113091.56 18551526 .060

2006 1283251.45 21036909 .061

2007 1460833.55 23948091 .061

Working Capital Ratios

Net Working Capital to Total Assets

Net Working Capital to Total Assets = Net Working Capital/ Total Assets

Interpretation:

Year Working Capital

Total Assets Net Working Capital to Total Assets

2005 1216751 24335011 .05

2006 715622 28624880 .025

2007 32476.74 32476736 .001