Submitted By: Moeez Ul Hassan

FA19-BAF-068
Submitted To: Sir Hashim Khan

Financial Statement Analysis

Final Project
DEFINITION
Financial statement analysis is reviewing and analyzing a company's financial statements to
make better economic decisions to earn income in the future. In other words, financial
statement analysis is analyzing a company's financial statements for decision-making
purposes.
FSA takes place based on

 Income statement
 Balance sheet
 Cash flows
 Notes to account
 Statement of changes in equity

PURPOSE

Financial statement analysis is used by a variety of stakeholders. They have different

interests and apply a variety of different techniques to meet their needs. Horizontal,
vertical, and ratio analysis are three different techniques used by analysts when analyzing
financial statements. It helps to enhance the company’s financial performance and
business activities and also makes it easy to achieve goals.

BENEFITS
The main benefit of FSA is to evaluate

 the company’s financial performance and business activities.

 This helps the stakeholders to improve the performance and business activities to
achieve goals in efficient ways.
Financial statements are maintained by companies daily so that they can be used for
business management. FSA is done based on financial statements
NAME OF COMPANY
TOYOTA INDUS MOTORS
Indus motors company limited, operation as TOYOTA INDUS, is a Pakistani automobile
manufacturer which is a subsidiary of Japanese multinational automaker Toyota motor
corporation. It is based in Karachi. Toyota Indus motor was founded in 1989. Indus motor is
the authorized assembler and manufacturer of Toyota and Daihatsu vehicles, parts, and
accessories in Pakistan in Pakistan since 1 July 1990. Indus motor has employed 3,349
persons.
 Revenue  ₨96.516 billion (US$600 million)
(2015)

Operating  ₨14.184 billion (US$89 million)

income (2015)

Net income  ₨9.11 billion (US$57 million)

(2015)

Total assets  ₨50.399 billion (US$310 million)

(2015)

Total equity  ₨24.036 billion (US$150 million)

(2015)

Vision

“To be the most respected and successful enterprise, delight customers with a wide range of
products and solutions in the automobile industry with the best people and the best
technology.”

Mission
Z-Score
This is the formula for calculating the Z-score
Z-Score =1.2 A+ 1.4B+3.3C+0.6D+1.0E
Where:
A= Working capital /Total Assets
B= Retained earnings /Total Assets
C= Earnings before Interest and Tax / Total Assets
D= Market value of Equity/ Total Liabilities
E= Sales /Total Assets
If Z-Score is in between 0 - 1.8: indicates the company will declare bankruptcy in the future.
When the score lies in between the 1.8 – 3: indicates the company is likely to declare
bankruptcy. the company will not declare bankruptcy if it is recorded more than 3.

Formula 2018 2017 2016 2015

A Working capital /Total Assets 0.2543 0.3701 0.3465 0.268
Retained earnings /Total
B 0.7627 0.7865 0.7691 0.7666
Assets
Earnings before Interest and
C 0.1387 0.1406 0.1506 0.1701
Tax / Total Assets
Market value of Equity/ Total
D 7.2574 15.4068 12.6336 9.221
Liabilities
E Sales /Total Assets 0.4362 0.4694 0.5263 0.6124
Z- 1.2 A+
6.62129 11.72268 10.09598 8.10117
Score 1.4B+3.3C+0.6D+1.0E

Since all the ratios are very high, this means that the company will not go bankrupt in near
future. The ratios are very high because Toyota Motors is a very reputed company which has
its sales in mass.

FSA RATIOS
Ratio analysis is widely used as a powerful tool of financial statement analysis. It establishes
the numerical or quantitative relationship between two figures of a financial statement to
ascertain strengths and weaknesses of a firm as well as its current financial position and
historical performance. It helps various interested parties to make an evaluation of certain
aspect of a firm’s performance. The following are the principal advantages of ratio analysis:
1. Forecasting and Planning: The trend in costs, sales, profits and other facts can be
known by computing ratios of relevant accounting figures of last few years. This
trend analysis with the help of ratios may be useful for forecasting and planning
future business activities.
2. Budgeting: Budget is an estimate of future activities on the basis of past experience.
Accounting ratios help to estimate budgeted figures. For example, sales budget may
be prepared with the help of analysis of past sales.
3. Measurement of Operating Efficiency: Ratio analysis indicates the degree of
efficiency in the management and utilization of its assets. Different activity ratios
indicate the operational efficiency. In fact, solvency of a firm depends upon the sales
revenues generated by utilizing its assets.
4. Communication: Ratios are effective means of communication and play a vital role in
informing the position of and progress made by the business concern to the owners
or other parties.
5. Control of Performance and Cost: Ratios may also be used for control of
performances of the different divisions or departments of an undertaking as well as
control of costs.
6. Inter-firm Comparison: Comparison of performance of two or more firms reveals
efficient and inefficient firms, thereby enabling the inefficient firms to adopt suitable
measures for improving their efficiency. The best way of inter-firm comparison is to
compare the relevant ratios of the organisation with the average ratios of the
industry.
7. Indication of Liquidity Position: Ratio analysis helps to assess the liquidity position
i.e., short-term debt paying ability of a firm. Liquidity ratios indicate the ability of the
firm to pay and help in credit analysis by banks, creditors and other suppliers of
short-term loans.
8. Indication of Long-term Solvency Position: Ratio analysis is also used to assess the
long-term debt-paying capacity of a firm. Long-term solvency position of a borrower
is a prime concern to the long-term creditors, security analysts and the present and
potential owners of a business. It is measured by the leverage/capital structure and
profitability ratios which indicate the earning power and operating efficiency. Ratio
analysis shows the strength and weakness of a firm in this respect.
9. Indication of Overall Profitability: The management is always concerned with the
overall profitability of the firm. They want to know whether the firm has the ability
to meet its short-term as well as long-term obligations to its creditors, to ensure a
reasonable return to its owners and secure optimum utilisation of the assets of the
firm. This is possible if all the ratios are considered together.
10. Signal of Corporate Sickness: A company is sick when it fails to generate profit on a
continuous basis and suffers a severe liquidity crisis. Proper ratio analysis can give
signal of corporate sickness in advance so that timely measures can be taken to
prevent the occurrence of such sickness.
11. Aid to Decision-making: Ratio analysis helps to take decisions like whether to supply
goods on credit to a firm, whether bank loans will be made available etc.
12. Simplification of Financial Statements: Ratio analysis makes it easy to grasp the
relationship between various items and helps in understanding the financial
statements.
Procedure for computation of ratios

Generally, ratio analysis involves four steps:

 Collection of relevant accounting data from financial statements.

 Constructing ratios of related accounting figures.
 Comparing the ratios thus constructed with the standard ratios which may be the
corresponding past ratios of the firm or industry average ratios of the firm or ratios
of competitors.
 Interpretation of ratios to arrive at valid conclusions

Types of Ratios
Although accounting ratios are calculated by taking data from financial statements but
classification of ratios on the basis of financial statements is rarely used in practice. It must
be recalled that basic purpose of accounting is to throw light on the financial performance
(profitability) and financial position (its capacity to raise money and invest them wisely) as
well as changes occurring in financial position (possible explanation of changes in the
activity level). As such, the alternative classification (functional classification) based on the
purpose for which a ratio is computed, is the most commonly used classification which is as
follows:

A. Profitability Ratios
B. Solvency (or Debt) Ratios
C. Liquidity Ratios
D. Activity (or Turnover) Ratios

Profitability Ratios

Profit is the primary objective of all businesses. All businesses need a consistent
improvement in profit to survive and prosper. A business that continually suffers losses
cannot survive for a long period. Profitability ratios measure the efficiency of management
in the employment of business resources to earn profits. These ratios indicate the success or
failure of a business enterprise for a particular period of time. Profitability ratios are used by
almost all the parties connected with the business. A strong profitability position ensures
common stockholders a higher dividend income and appreciation in the value of the
common stock in future. Creditors, financial institutions and preferred stockholders expect a
prompt payment of interest and fixed dividend income if the business has good profitability
position. Management needs higher profits to pay dividends and reinvest a portion in the
business to increase the production capacity and strengthen the overall financial position of
the company

Gross Profit Margin (GPM) gross profit/sales

Operating Profit Margin (OPM) operating profit/Sales
Net Profit Margin (NPM) Net profit after taxes/sales
Return on Total Assets (ROA) Net profit after taxes/assets
 Return On Equity (ROE) Net Profit After Taxes/Equity
Earnings Per Share (EPS)
Price/Earnings (P/E) Ratio Market Price Per Share of Common
Stock/earnings per share

Solvency Ratio

Solvency ratios (also known as long-term solvency ratios) measure the ability of a business
to survive for a long period of time. These ratios are very important for stockholders and
creditors. Solvency ratios are normally used to:

 Analyze the capital structure of the company

 Evaluate the ability of the company to pay interest on long term borrowings
 Evaluate the ability of the the company to repay principal amount of the long term
loans (debentures, bonds, medium and long term loans etc.).
 Evaluate whether the internal equities (stockholders’ funds) and external equities
(creditors’ funds) are in right proportion.

Some frequently used long-term solvency ratios are given below:

Debt Ratio (DR) Total liabilities/total assets

Debt-Equity Ratio (DER) Long term debt/ Equity
Times Interest Earned Ratio (TIE) income before tax and interest/ interest

Liquidity Ratio

Liquidity ratios measure the adequacy of current and liquid assets and help evaluate the
ability of the business to pay its short-term debts. The ability of a business to pay its short-
term debts is frequently referred to as short-term solvency position or liquidity position of
the business. Generally a business with sufficient current and liquid assets to pay its current
liabilities as and when they become due is considered to have a strong liquidity position and
a businesses with insufficient current and liquid assets is considered to have weak liquidity
position. Financial institutions hesitate to offer short-term loans to businesses with weak
short-term solvency position. Three commonly used liquidity ratios are given below:

Net Working Capital (NWC) Current Assets - Current Liabilities

Current Ratio (CR) Current assets/current liabilities
Quick (Acid-Test) Ratio (QR current assets-inventory/current liabilities

Activity Ratio

Activity ratios (also known as turnover ratios) measure the efficiency of a firm or company in
generating revenues by converting its production into cash or sales. Generally a fast
conversion increases revenues and profits. Activity ratios show how frequently the assets
are converted into cash or sales and, therefore, are frequently used in conjunction with
liquidity ratios for a deep analysis of liquidity. Some important activity ratios are

Inventory Turnover (IT) Cost of Goods Sold/inventory

Average Collection Period (ACP) in days Accounts Receivable/annual sales/360
Average Payment Period (APP) in days Accounts Payable/ annual purchases/360
Fixed Asset Turnover (FAT) Sales / Net fixed assets
Total Asset Turnover (TAT) sales/ Total Assets

Ratio analysis

Measuring Profitability
2015 2016 2017 2018

Gross Profit
Margin (GPM) gross profit/sales 0.4509 0.482 0.4661 0.2862
Operating Profit
Margin (OPM) operating profit/Sales 0.4509 0.482 0.4661 0.1506
Net Profit Net profit after
Margin (NPM) taxes/sales 0.2777 0.2862 0.2996 0.1867
Return on Total Net profit after
0.17
Assets (ROA) taxes/assets 0.1506 0.14066 0.4661
Return On Net Profit After
0.17
Equity (ROE) Taxes/Equity 2.0978 0.1867 0.1716
Earnings Per
Share (EPS) 38.44 40.03 42.34 2.0978
Market Price Per Share of
Price/Earnings Common Stock/earnings
(P/E) Ratio per share 13.51 16.21 19.75 15.23

Analyzing debt
Total liabilities/total
Debt Ratio (DR) assets 0.1891 0.1931 0.1803 0.1873
Debt-Equity
Ratio (DER) Long term debt/ Equity 0.0133 0.001 0.00106 0.00153
Times Interest
Earned Ratio income before tax and
(TIE) interest/ interest 617.93 770.33 0 540.78

Liquidity analysis
 Net Working Current Assets - Current 19,587,2 29,776,8 36,024,2 39,077,8
Capital (NWC) Liabilities 46 93 98 46
Current Ratio Current assets/current
(CR) liabilities 3.635 4.0918 4.482 4.628
current
Quick (Acid- assets-inventory/current
Test) Ratio (QR liabilities 2.9637 3.4694 -1.2155 1.6437

Analyzing activity
Inventory Cost of Goods
Turnover (IT) Sold/inventory 4.9201 3.907 4.1378 4.448
Average
Collection Accounts
Period (ACP) in Receivable/annual
days sales/360 0.637 1.0029 1.302 1.512
Average
Payment Period Accounts Payable/ annual
(APP) in days purchases/360 93.48 131.63 154.81 167.83
Fixed Asset
Turnover (FAT) Sales / Net fixed assets 0.9716 0.9722 0.8963 0.9131
Total Asset
Turnover (TAT) sales/ Total Assets 0.612 0.526 0.469 0.403

TREND ANALYSIS
Trend analysis is the process of evaluating financial statements of a company over a period
of specified time. The time period can be of months, years or whenever required. The main
objective of trend analysis is to calculate the change in percentage from one period to
another. A very common example of trend analysis is to check sales to see if they are
increasing or decreasing. Trend analysis can be done for any purpose related to financial
check of the company. Other than analysis, we also make interpretation. Interpretation
makes the data easily understandable for anyone to read. Moreover, interpretation helps to
make decision about next step for the manager easy.
Trend analysis is of two types. Horizontal and vertical. Horizontal analysis is also known as
comparative analysis while vertical analysis is also known as common size analysis. The
purpose of horizontal analysis is to determine change in any item during accounting period.
While the purpose of vertical analysis is to determine portion of any item to common item
of the same accounting period. Both of these procedures are done using the balance sheet
of any particular company.

Balnce Sheet
Toyota
Balance Sheet
As at September 30
 2018 2017 2016 2015
PKR 000 PKR 000
ASSETS
NON-CURRENT ASSETS
Fixed assets 0 0 0 5,193,477
Property, plant and equipment 7,224,839 6,257,927 4,918,986 0
intangible assets 86,540 87,517 19,291 0
Deferred Taxation 14,589 73,969 198,621 5,295
Long-term investments 0 0 5,005,805 4,954,764
Long-term loans and advances 48,525 9,368 3,794 11,096
Long-term deposits 9,443 9,443 9,948 9,667
10,156,44 10,174,29
7,383,936 6,438,224 5 9
CURRENT ASSETS
Stores and spares 301,254 203,829 153,561 178,599
Stock-in-trade 11,150,736 9,317,883 7,785,245 6,150,488
Trade debts 1,453,670 758,872 1,131,702 447,750
Loans and advances 3,714,654 1,652,906 1,125,490 1,220,574
Trade deposits and short-term
prepayments 14,639 20,839 45,520 18,919
Accrued return 120,016 376,037 513,355 418,829
Other receivables 556,284 402,304 191,303 167,757
41,487,70 33,696,80
Short term investment 55,031,103 9 4 6,756,886
24,865,38
Cash and bank balances 2,200,772 3,221,120 2,737,569 8
57,441,49 47,380,54 40,225,15
74,543,128 9 9 0
63,879,72 57,536,99 50,399,44
TOTAL ASSETS 81,927,064 3 4 9

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Share Capital 786,000 786,000 786,000 786,000
30,410,96 26,843,60 23,249,52
Reserves 35,958,342 2 9 0
31,196,96 27,629,60 24,035,52
36,744,342 2 9 0
NON-CURRENT LIABILITIES
Deferred revenue 22,711 3,933 0 0
22,711 3,933 0 0
CURRENT LIABILITIES
10,035,14
Trade and other payables 15,731,241 9,682,879 5 9,180,705
22,188,88 19,127,36 16,192,91
Advances from customers and dealers 27,491,128 1 0 8
Taxation 1,690,827 807,068 744,880 990,306
Current portion of deferred revenue 3,933 0 0 0
Dividend payable 242,882 0 0 0
32,678,82 29,907,38 26,363,92
45,160,011 8 5 9
63,879,72 57,536,99 50,399,44
TOTAL EQUITY AND LIABILITIES 81,927,064 3 4 9

Vertical Analysis
Trend Analysis of Toyota Motors
VERTICAL ANALYSIS OF BALANCE SHEET

2018 2017 2016 2015

ASSETS
NON-CURRENT ASSETS
Fixed assets 0 0 0 0.103046
Property, plant and equipment 8.82% 9.80% 8.55% 0.00%
intangible assets 0.11% 0.14% 0.03% 0.00%
Deferred Taxation 0.02% 0.12% 0.35% 0.01%
Long-term investments 0.00% 0.00% 8.70% 9.83%
Long-term loans and advances 0.06% 0.01% 0.01% 0.02%
Long-term deposits 0.01% 0.01% 0.02% 0.02%
9.01% 10.08% 17.65% 20.19%
CURRENT ASSETS
Stores and spares 0.37% 0.32% 0.27% 0.35%
Stock-in-trade 13.61% 14.59% 13.53% 12.20%
Trade debts 1.77% 1.19% 1.97% 0.89%
Loans and advances 4.53% 2.59% 1.96% 2.42%
Trade deposits and short-term
prepayments 0.02% 0.03% 0.08% 0.04%
Accrued return 0.15% 0.59% 0.89% 0.83%
Other receivables 0.68% 0.63% 0.33% 0.33%
Short term investment 67.17% 64.95% 58.57% 13.41%
Cash and bank balances 2.69% 5.04% 4.76% 49.34%
90.99% 89.92% 82.35% 79.81%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Share Capital 0.96% 1.23% 1.37% 1.56%
Reserves 43.89% 47.61% 46.65% 46.13%
44.85% 48.84% 48.02% 47.69%
NON-CURRENT LIABILITIES
Deferred revenue 0.03% 0.01% 0.00% 0.00%
0.03% 0.01% 0.00% 0.00%
CURRENT LIABILITIES
Trade and other payables 19.20% 15.16% 17.44% 18.22%
Advances from customers and
dealers 33.56% 34.74% 33.24% 32.13%
Taxation 2.06% 1.26% 1.29% 1.96%
Current portion of deferred
revenue 0.00% 0.00% 0.00% 0.00%
Dividend payable 0.30% 0.00% 0.00% 0.00%
55.12% 51.16% 51.98% 52.31%
TOTAL EQUITY AND LIABILITIES 100.00% 100.00% 100.00% 100.00%

Horizontal Analysis
TREND ANALYSIS OF Toyota Motors

HORIZONTAL ANALYSIS OF BALANCE SHEET

2018 CHANGE 2017 CHANGE 2016 CHANGE

ASSETS
NON-CURRENT
ASSETS
Fixed assets -5,193,477 -1 -5,193,477 -1 -5,193,477 -1
Property, plant and
equipment 7,224,839 #DIV/0! 6,257,927 #DIV/0! 4,918,986 #DIV/0!
intangible assets 86,540 #DIV/0! 87,517 #DIV/0! 19,291 #DIV/0!
Deferred Taxation 9,294 1.755241 68,674 12.9696 193,326 36.511
Long-term
investments -4,954,764 -1 -4,954,764 -1 51,041 0.0103
Long-term loans
and advances 37,429 3.373198 -1,728 -0.1557 -7,302 -0.6581
-
Long-term deposits -224 0.023172 -224 -0.0232 281 0.02907
-
-2,790,363 0.274256 -3,736,075 -0.3672 -17,854 -0.0018
CURRENT ASSETS
Stores and spares 122,655 0.686762 25,230 0.14127 -25,038 -0.1402
Stock-in-trade 5,000,248 0.812984 3,167,395 0.51498 1,634,757 0.26579
Trade debts 1,005,920 2.246611 311,122 0.69486 683,952 1.52753
Loans and advances 2,494,080 2.043366 432,332 0.3542 -95,084 -0.0779
Trade deposits and
short-term -
prepayments -4,280 0.226228 1,920 0.10149 26,601 1.40605
 -
Accrued return -298,813 0.713449 -42,792 -0.1022 94,526 0.22569
Other receivables 388,527 2.316011 234,547 1.39814 23,546 0.14036
Short term 34,730,82 26,939,91
investment 48,274,217 7.144447 3 5.14006 8 3.98703
- -
Cash and bank - - 21,644,26 22,127,81
balances 22,664,616 0.911493 8 -0.8705 9 -0.8899
17,216,34
34,317,978 0.853147 9 0.428 7,155,399 0.17788
13,480,27
TOTAL ASSETS 31,527,615 0.625555 4 0.26747 7,137,545 0.14162

EQUITY AND
LIABILITIES

SHARE CAPITAL
AND RESERVES
Share Capital 0 0 0 0 0 0
Reserves 12,708,822 0.546627 7,161,442 0.30803 3,594,089 0.15459
12,708,822 0.528752 7,161,442 0.29795 3,594,089 0.14953
NON-CURRENT
LIABILITIES
Deferred revenue 22,711 #DIV/0! 3,933 #DIV/0! 0 #DIV/0!
22,711 #DIV/0! 3,933 #DIV/0! 0 #DIV/0!
CURRENT
LIABILITIES
Trade and other
payables 6,550,536 0.713511 502,174 0.0547 854,440 0.09307
Advances from
customers and
dealers 11,298,210 0.697725 5,995,963 0.37028 2,934,442 0.18122
Taxation 700,521 0.707378 -183,238 -0.185 -245,426 -0.2478
Current portion of
deferred revenue 3,933 #DIV/0! 0 #DIV/0! 0 #DIV/0!
Dividend payable 242,882 #DIV/0! 0 #DIV/0! 0 #DIV/0!
18,796,082 0.712947 6,314,899 0.23953 3,543,456 0.13441
TOTAL EQUITY AND 13,480,27
LIABILITIES 31,527,615 0.625555 4 0.26747 7,137,545 0.14162

Comprehensive Income Statement:

Toyota
 Profit or Loss And Other Comprehensive Income
As at September 30,
2018 2017 2016 2015
PKR 000 PKR 000
24,857,55 17,277,17
NET SALES 31,219,736 25,751,868 6 8
less:
20,664,07 15,585,54
Cost of sales 25,776,884 21,573,398 8 2
GROSS PROFIT 5,442,852 4,178,470 4,193,478 1,691,636
Less:
Distribution cost 311,210 203,781 216,339 411,527
Administrative expenses 279,045 220,512 188,921 178,464
Other expenses 3,042 2,422 4,940 5,383
Finance Costs 152,671 11,403 19,717 12,402
Worker's participation and welfare fund 385,120 318,405 314,971 122,537
Add:
Other income 856,365 874,207 798,155 635,925
PROFIT BEFORE TAXTATION 5,168,129 4,296,154 4,246,745 1,597,248
less:
Taxation 1,539,049 1,248,793 1,312,480 470,268

PROFIT AFTER TAXATION 3,628,720 3,047,361 2,934,265 1,126,980

OTHER COMPREHENSIVE INCOME 0 0 0 0

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 3,628,720 3,047,361 2,934,265 1,126,980

Earnings per share - basic and diluted 46 39 37 14

Vertical Analysis:
TREND ANALYSIS OF Toyota Motors
VERTICAL ANALYSIS OF INCOME
STATEMENT

2018 2017 2016 2015

100.00 100.00 100.00 100.00

NET SALES % % % %
less:
Cost of sales 82.57% 83.77% 83.13% 90.21%
GROSS PROFIT 17.43% 16.23% 16.87% 9.79%
Less:
Distribution cost 1.00% 0.79% 0.87% 2.38%
Administrative expenses 0.89% 0.86% 0.76% 1.03%
Other expenses 0.01% 0.01% 0.02% 0.03%
Finance Costs 0.49% 0.04% 0.08% 0.07%
Worker's participation and welfare fund 1.23% 1.24% 1.27% 0.71%
Add:
Other income 2.74% 3.39% 3.21% 3.68%
PROFIT BEFORE TAXTATION 16.55% 16.68% 17.08% 9.24%
less:
Taxation 4.93% 4.85% 5.28% 2.72%

PROFIT AFTER TAXATION 11.62% 11.83% 11.80% 6.52%

OTHER COMPREHENSIVE INCOME 0.00% 0.00% 0.00% 0.00%

TOTAL COMPREHENSIVE INCOME FOR THE

YEAR 11.62% 11.83% 11.80% 6.52%

Earnings per share - basic and diluted 0.00% 0.00% 0.00% 0.00%

Horizontal Analysis:
TREND ANALYSIS OF Toyota Motors

HORIZONTAL ANALYSIS of Income Statement

2018 CHANGE 2017 CHANGE 2016 CHANGE

NET SALES 13942558 80.70% 13942558 81% 7580378 0.438751

less:
Cost of sales 10191342 65.39% 10191342 65% 5078536 0.325849
GROSS PROFIT 3751216 221.75% 3751216 222% 2501842 1.478948
Less:
Distribution cost -100317 -24.38% -100317 -24% -195188 -0.4743
Administrative expenses 100581 56.36% 100581 56% 10457 0.058594
Other expenses -2341 -43.49% -2341 -43% -443 -0.0823
Finance Costs 140269 1131.02% 140269 1131% 7315 0.589824
Worker's participation and
welfare fund 262583 214.29% 262583 214% 192434 1.570415
Add:
Other income 220440 34.66% 220440 35% 162230 0.255109
PROFIT BEFORE 3570881 223.56% 3570881 224% 2649497 1.658789
 TAXTATION
less:
Taxation 1068781 227.27% 1068781 227% 842212 1.790919

PROFIT AFTER TAXATION 2501740 221.99% 2501740 222% 1807285 1.603653

OTHER COMPREHENSIVE
INCOME 0 #DIV/0! 0 #DIV/0! 0 #DIV/0!

TOTAL COMPREHENSIVE
INCOME FOR THE YEAR 2,501,740 221.99% 2501740 222% 1807285 1.603653

Earnings per share - basic

and diluted 32 221.74% 31.82 222% 22.98 1.601394

Conclusion
Financial statement analysis is widely used for checking if a company is performing well or
not in its financial records. By far we have performed trend analysis, Z score and many other
procedures to check if Toyota Motors is going well or not. What we have found recently is
that the company has a high Z score which shows that the company will not go bankrupt in
near future. Moreover, all the financial records of the company are always going up since its
formation. In the recent years, the company has been increasing its sales, shares and price per
share. All the above shown financial records show that Toyota Motors is performing
excellent. The Z score of the company has been more than five which highly indicates that
the company will not go bankrupt in new in near future. The trend analysis also shows
increase in almost every item from sales to gross profit to asset turnover, all the financial
records of the company are going up which shows successful growth of sales of Toyota
Motors.