Submitted By:

Shivangi
Shayan Faheem
Shobhit Agarwal
Sukriti Gupta
Swati Yadav
Tanvir Kaur

TOYOTA
Bhatia
Nature Of Industry
 It is one of the largest employers in the country and a major
contributor to our economy.
 Motor vehicle and parts manufacturers also have a major
influence on other industries in the economy as well.
 In 2007, a total of 71.9 million new automobiles were sold &
production reached a peak of 73.3 million worldwide
 China is the largest automobile producer and market in the
world.
 In 2009, production dropped to 61%
World Ranking Of Automobile
Manufactures.

 1 TOYOTA
 2 G.M.
 3 VOLKSWAGEN
 4 FORD
 5 HYUNDAI
 6 PSA
 7 HONDA
 8 NISSAN
 9 FIAT
 10 SUZUKI
Company Profile
 Industry- Automotive
 Founded- August 28,1937
 Founder- Kiichiro Toyota
 Headquaters- Toyota City,aichi, Japan
 Area Served- Worldwide
 Revenue- ¥18.9 Trillion
 Operating Income- ¥ 147.5billion
 Profit- ¥ 209.4 Billion
 Total Assets- ¥ 30.3 Trillion
 Total Equity- ¥ 10.3 Trillion
 Employees- 71,116 (For TMC, Total TOYOTA 3,20,808)
 Parent- Toyota Group
Shareholding Pattern
 As of 3/31/08, Toyota had 522,135 shareholders of
record.
 Toyota pays cash dividends semiannually. In fiscal
year 2008 (ended 03/31/08), Toyota paid a cash
dividend of approximately $2.58 per ADR.
 Shareholders have the option to reinvest all or a
portion of their cash dividends.

 Shareholder Equity (in million yen)

2008 2009
11869527 10061207
Nature Of Business
 Cars
 Trucks
 SUV’s & Van
 Hybrids
Suppliers To Toyota
 Cawor Enterprises Co. Ltd.(Car decoration/car decor)
 Ruian Zhongya Import & Export Co. Ltd (brake pump / pump)
 Ruian Aoyang Filter Co.Ltd (Air Filter)
 Jiu Tech Enterprise Co.Ltd (TOYOTA TIS CABLE diagnostic
scanner)
 Huawenyi Technology Co.Ltd (TOYOTA DENSO Diagnostic
Tester)
 Revenue Details
Net Automotiv Financial All Inter- Consolidate
Revenues e Services Other segment d
elimination

Sales to 21,914,168 1,277,994 755,929 - 23,948,091

external
customers

Inter segment 13,838 22,554 567,802 (604,194) -

sales and
transfer

Total 21,928,006 1,300,548 1,323,73 (604,194) 23,948,091

1
 Break Even Sales
2006 2007 2008

P V ratio 22.35% 23.35% 22.20%

Sales(million yen) 21,036,909 23,948,091 26,289,240

Fixed cost(million yen) 2,823,255 3353153 3566527

Variable cost 16,335,312 18,356,255 20,452,338

Breakeven values(million yen) 20,452,338 1,43,60,398 1,60,65,437

 Break Even Sales (In Units)
2006 2007 2008

Fixed cost (million yen) 2,823,255 3353153 3566527

Variable cost 16,335,312 18,356,255 20,452,338

Sales (million yen) 21,036,909 23,948,091 26,289,240

Contribution 4701597 5591836 5836902

Breakeven units 46,28,287 49,31,107 52,44,893

Margin Of Safety
2006 2007 2008

Sales(million yen) 21,036,909 23,948,091 26,289,240

Breakeven values 20,452,338 1,43,60,398 1,60,65,437

Margin of safety 84,04,896 95,87,693 1,02,23,803

 Profit Volume Ratio
2006 2007 2008

Sales(million yen) 21,036,909 23,948,091 26,289,240

Fixed cost(million yen) 2,823,255 3353153 3566527

Variable cost 16,335,312 18,356,255 20,452,338

Contribution 4701597 5591836 5836902

P V ratio 22.35% 23.35% 22.20%

Operating Leverage
2006 2007 2008

Sales 21,036,909 23,948,091 26,289,240

EBIT
2,087,360 2,382,516 2,437,222

2006-2007 2007-2008

Leverage 0.10 0.02

Conclusion

 Operating leverage is the relative change in profit due to sales

since in the case of toyota it is decreasing so it is not a good
sign for the company. Thus it implies that a small change in
profit occurs due to relatively large change in sales.
 Margin of safety is the excess of actual sales over BEP sales, as
in the case of toyota the margin of safety is higher so it is
better from the point of view of the company.
 Breakeven point is the point at which there is no profit and no
loss since the BEP sales is increasing every year so it is
beneficial for the company.
 Thus it can be concluded that the performance of toyota is
average since the operating leverage is decreasing while the
margin of safety and BEP sales is increasing.
 THANK YOU