toyota imc1.pptx

7/29/2019 toyota imc1.pptx

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Toyota Motor Corporation was Japans

largest car company and the worldsthird largest by the year 2000. Thecompany controlled 9.8 percent of theglobal market for automobiles.

Indus Motor Company (IMC) is a jointventure between the House ofHabib , Toyota Motor Corporation Japan

(TMC) , and Toyota Tsusho CorporationJapan (TTC) for assembling, progressivemanufacturing and marketing of Toyotavehicles in Pakistan since July 01, 1990.IMC is engaged in sole distributorship ofToyota. vehicles in Pakistan through itsdealership network.

Toyota Motor Corporation and ToyotaTsusho Corporation have 25 % stake inthe company equity
http://www.hoh.net/http://www.hoh.net/http://www.toyota.co.jp/enhttp://www.toyota.co.jp/enhttp://www.toyota.co.jp/enhttp://www.toyota.co.jp/enhttp://www.toyotsu.co.jp/http://www.toyota.co.jp/enhttp://www.toyota.co.jp/enhttp://www.toyotsu.co.jp/http://www.toyotsu.co.jp/http://www.toyotsu.co.jp/http://www.toyotsu.co.jp/http://www.toyota.co.jp/enhttp://www.toyota.co.jp/enhttp://www.hoh.net/http://www.hoh.net/


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IMCs Vision is to be the most respected and successfulenterprise, delighting customers with a wide range ofproducts and solutions in the automobile industry with

the best people and the best technology". The most respected.

The most successful.

Delighting customers.

Wide range of products. The best people.

The best technology.


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Strategic objectives


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Comparative balance sheetParticulars 2010 2011 Absolute Percentage

Assets

Total fixed

assets

3347025 4246881 899856 26.89

Toatal current

assets

23791253 22587737 -1203516 -5.06

Total current &

non current

assets27138278 26834618 _303660 1.12


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Comparative balance sheet

Share capital

Total equity

and reserves

12587615 14119648 1532033 12.17

Total liabilities 14224866 12260958 -1963908 -13.80

Total equilty

and liabilities

27138278 26834618 -303660 -1.118


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Interpretation


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Comparative Profit & loss AccountFor the year endig june 30 june,2010 and 2011

PARTICULARS Year

ending

31December

Increase/Decr

ease

(Amounts)

Increase/Decr

ease ( % )

Net Sales 60093139 61702677 1609538 2.68

Cost of Sales 55236625 57613542 2376917 4.30

Gross Profit 4856514 4089135 -767379 -15.80

Operating

Profit

3590337 2580692 -1009645 -28.12

Other Operating

Income

1796075 1507878 -288197 -16.05

Finance Cost 143873 77115 -66758 -46.40

Profit After Tax 3443403 2743384 -700019 -20.33


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:


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Common size balance sheetfor the year endig june 30 june,2010 and 2011

Particulars 2010 Increase/

decrease

( % )

2011 Increase

/decrease

( % )

ASSETS

TOTAL fixed

assets

3347025 12.33 4246881 15.829

TOTALcurrent assets

23791253 87.67 22587737 84.17

Total assests 27138278 100 26834618 100


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Common size balance sheetfor the year endig june 30 june,2010 and 2011

EQUITY

TOTAL equity

and reserves

12587615 46.38 14119648 52.617

TOTAL non

current

liabilities

325797 1.2 454012 1.69

TOTAL current

liabilities

14224866 52.41 12260958 45.69

TOTAL EQUITY

AND

LIABILITIES

27138278 100 26834618 100


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Interpretation of common size


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Common size Profit & loss AccountFor the year ending on 30 june,2010 and 2011

Particulars 2010Increase/decr

ease (%) 2011Increase/decrease ( % )

Net sales 60093139 100 61702677 100.00

Cost of sales55236625 91.92 57613542 93.37

Gross profit

4856514 8.08 4089135 6.63

Operating

profit

3590337 5.97 2580692 4.18

OtherOperating

Income

1796075 2.99 1507878 2.44

Profit after tax 3443403 5.73 2743384 4.45


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INTERPRETATION

The Vertical Analysis of Income Statement reveals that there in that in 2010 CGSwas 91.92% of net sales. And in2011 CGS is 93.37% of net sales.

Gross Profit was 8.08% in 2010 and in 2011 GP is 6.03% of Sales. The % decreasein GP is because increase in Sales is less as compared to increase in CGS.

Operating Expenses were 2.1% in 2010 while in 2011oerating expenses are 2.45%of Sales.

This Expenses is due to the introduction of new Model of Vehicle. Another reasonof increase in Operating Expenses is TSUNAMI in JAPAN.

Operating Profit was 5.97% in 2010 and in 2011 GP is 4.18% of Sales.

Operating Income was 2.99% in 2010 while in 2011 Operating income is 2.44% ofSales. the decreases is due to decrease in return on bank deposit and the reasonof the decreases in bank deposit is we want to pay back our current liabilities andwithdraw the money from bank.

Finance Cost was .24% in 2010 while in 2011 is 1.89% of Sales. The Net Profit was 5.73% in 2010 while in 2011 is 4.45% of Sales is -20.32%


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ratios


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Short term financial position

Particulars 2011 2010

Liquidit ratio: Times Days Times Days

Current ratio. 1.84 _ 1.67 _

Quick ratio. 1.37 _ 1.30 _

Cash ratio. 1.13 _ 1.10 _

Efficiency ratio:

Inventory

turnover ratio.

10.12 36 10.62 34

Debtors or

receivable

turnover ratio.

40.98 9 33.21 11

Creditor or

payable turnover

ratio.

4.13 88 3.39 108

Working capital

turnover ratio.

6 _ 7 _


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Interpretation of liquid ratio and

efficiency ratio: Liquid ratio

1.current ratio:

The current ratio of toyota in 2011 is 1.84 as compared to 2010 thatis 1.67 it means that the company is more liquid in 2011 and hasthe ability to pay its obiligation in times and when they become

due. 2.Quick ratio:

The quick ratio of toyota in 2011 is 1.37 as compared to 2010 that is1.30 that shows company is more liquid in 2011 and has the abilityto meet its current liabilities in times.

3.cash ratio: In 2011 cash ratio is 1.13 as compared to 2010 in wich cash ratio is

1.10 it means that liquid assets are adequate to pay currentliabilities in time.


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Long term financial position

Particulars 2011 2010

Deqbt equity ratio 0.9005:1 1.156:1

Proprietory ratio 53% 46%

Solvancy ratio 47% 54%

Fixed assets to net

worth ratio

30% 26%

Ratio of current assets

to proprietory fund

160% 189%


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INERPRETATION

Debt equity ratio

In 2011 the proportionate claim of outsiders to owners is 0.9005:1. And in 2010 the debt equity ratio was 1.156:1

As the considered standard debt equity ratio is 1:1 so in 2011 0.9005:1 is satisfactory.

Properitory ratio In 2011 the shareholder equity are 53% of the total assets.

And In 2010 shareholder equity was 46% of total assets.

Higher the proprietory ratio of the company better is the long-term solvencyposition of the company. So this shows that long-term solvency position of thecompany has improved.

Solvency ratio

IN 2011 total liabilities to outsiders are 47% of total assets.

In 2010 total liabilities to outsiders are 54% of total assets. The lower the ratio of total liabilities to total assets, more satisfactory or stable

is long-term solvency position of a firm, so this shows that long-term solvency

position has improved in 2011.


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FIXED ASSETS TO NETWORTH RATIO


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Gross profit ratio

Operating ratio

Operating profit ratio Expenses ratio

Net profit ratio

Cash profit ratio


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General profitability ratio

Particulars 2011 2010Gross profit ratio 6.6271% 8.0816%

Operating ratio 95.81% 94.02%

Operating profit ratio 4.18% 5.974%

Net profit ratio 4.446% 5.73%

Cash profit ratio 11.21% 11.15%


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Return on share holder investment

Return on equity capital Earning per share


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OVERALL PROFITABILITY RATIO

PARTICULARS 2011 2010

Return on share holder

investment

19% 27%

Return on equity capital 349.03% = 438.09 %

Earning per share34.9 43.8


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Market test or valuation ratio

Dividend yield ratio

Price earning ratio

earning yield ratio

market value to book value ratio


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Apparently we see that there is downward trend

in profit, assets and earning per share as compare

to the previous year but financials show thatcompany earns good amount of profit and hasenough funds which enables it to issue interimdividend @ Rs. 5 per share. company also

declare final dividend @Rs. 10 per share which isa good sign for its share holders as well as

encourage investors.


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toyota imc1.pptx

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