Toyota Financial Performance from Time to Time

 

Toyota Financial Performance from Time to Time- Toyota Motor Corporation, or in Japanese commonly known as Toyota Jidōsha kabushikigaisha is one of the biggest automotive companies in The World. Historically, this company was founded by Kiichiro Toyoda (June 11, 1894 – March 27, 1952) on August 28, 1937.  Kiichiro Toyoda basically is an alumnus of Mechanical Engineering, Faculty of Engineering, at The University of Tokyo in 1920.  In his career, he also played a very important role in developing the Japanese economy through automotive industries that can affect the Japanese production of Automotive at that time and can compete with The United States of America (USA) products.

Toyota has known as the Toyota Way. This Philosophy was divided into 4 sections with 14 principles. These are Long-term philosophies, the right process will produce the right results, add value to the organization by developing your people, and continuously solving root problems drives organizational learning. Maybe some companies can learn from Toyota Way to build the company.

 
Toyota and Its Development

Now, Toyota has headquartered in Toyota City, Aichi prefecture, Japan having more than 366 thousand of employees across the globe. In 2023, the company that is well-known as “Toyota Way” can sell around 8.8 million vehicles across the globe. Along with business development, Toyota has some brands. These are Alphard, Camry, Crown, HiAce, Hilux, Land Cruiser, Lexus, and the others.

As a global company, Toyota also holds some of automotive companies, namely 20% stocks in Subaru Corporation, 5.1% stocks in Mazda, 4.9% stocks in Suzuki, 4.6% of stocks in Isuzu, 3.8% of the stock in Yamaha Motor Corporation, 2.8% of stocks in Panasonic, and some partnership vehicle manufacturing in foreign countries in China with GAC Toyota and FAW Toyota and India with Toyota Kirloskar.

Based on the stock information, this company also listed its stock in some stock markets, namely London Stock Exchange, Nagoya Stock Exchange, New York Stock Exchange, and the Tokyo Stock Exchange. Toyota Brand has become a global brand because many people around the world know this brand. With the improvement and innovation of their vehicle productions, Toyota strives to maintain its positions as a global brand in automotive industries among Volkswagen, Ford Motors, Stellantis, Honda Motors, General Motors, Daimler AG, BMW Group.

 

The Sales of Toyota

As becoming the global carmaker company, Toyota has some popular products in different geographical markets. Corolla, RAV4, Yaris, Camry, Hilux, Highlander, Tacoma, C-HR, Levin, Lexus RX are some of the popular series products of Toyota.  Specifically, Corolla still become the best-selling model of Toyota with total sales reaching 1.5 million units, followed by Yaris with 980 thousand units, RAV4 with 847 thousand units, Hilux with 648 thousand units, and Camry with 642 thousand units.

Furthermore, in 2023, According to Annual Report, there are top 10 Major Shareholders of Toyota. All of them are The Master Trust Bank of Japan, Ltd. with ownership percantage around 13.87 %, Toyota Industries Corporation (8.65 %) Custody Bank of Japan, Ltd. (6.98 %), Nippon Life Insurance Company (4.61 %), JP Morgan Chase Bank, N.A. (3.72 %), DENSO Corporation (3.26 %), State Street Bank and Trust Company (2.46 %), The Bank of New York Mellon (2.15 %), Mitsui Sumitomo Insurance Company, Limited (2.06 %), and Tokio Marine & Nichido Fire Insurance Co., Ltd. (1.85 %).

 

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The Assets, Liabilities, and Equities of Toyota

Years	Assets	Assets	Liabilities	Liabilities	Equities	Equities
	Yen	US Dollar	Yen	US Dollar	Yen	US Dollar
	in Trillion	in Billion	in Trillion	in Billion	in Trillion	in Billion
2001	17.5	145.25	10	83	7.5	62.25
2002	19.8	164.34	12	99.6	7.8	64.74
2003	20.1	166.83	12.7	105.41	7.4	61.42
2004	22	182.6	13.4	111.22	8.6	71.38
2005	24.3	201.69	14.7	122.01	9.6	79.68
2006	28.7	238.21	17.5	145.25	11.2	92.96
2007	32.5	269.75	20.1	166.83	12.4	102.92
2008	32.4	268.92	12.8	106.24	19.6	162.68
2009	29	240.7	18.4	152.72	10.6	87.98
2010	30.3	251.49	19.4	161.02	10.9	90.47
2011	29.8	247.34	18.9	156.87	10.9	90.47
2012	30.6	253.98	19.5	161.85	11.1	92.13
2013	35.4	293.82	22.7	188.41	12.7	105.41
2014	41.4	343.62	26.2	217.46	15.2	126.16
2015	47.7	395.91	30	249	17.7	146.91
2016	47.4	393.42	29.3	243.19	18.1	150.23
2017	48.7	404.21	30	249	18.7	155.21
2018	50.3	417.49	30.3	251.49	20	166
2019	53.4	443.22	32.7	271.41	20.7	171.81
2020	53.9	447.37	32.6	270.58	21.3	176.79
2021	62.2	516.26	37.9	314.57	24.3	201.69
2022	67.7	561.08	41.4	343.62	26.2	217.46
2023	74.3	616.69	46	381.8	28.3	234.89
Currency rate : 1 Japanese Yen (JPY) = 0.0083 US Dollar
Source : Toyota Annual Report, 2001-2023

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Financially, based on the annual report of Toyota from Time to time, precisely from 2001 to 2023, Toyota always showed positive performance. Their assets and equities have grown from time to time. Based on the Assets conditions, The Assets of Toyota in 2001 were just 17.5 trillion Yen, or equivalent to 145 billion US dollars. Meanwhile, the equities were just 7.5 trillion Yen or equivalent to 62.2 billion US. Dollars. In 2023, the assets of Toyota have become 74.3 trillion Yen, or equivalent to 616 billion US Dollars. Meanwhile, the equities have become 28.3 trillion Yen, or equivalent to 234 billion US Dollars.

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The Revenue and Net Income of Toyota

Years	Revenue	Revenue	Net Income	Net Income
	Yen	US Dollar	Yen	US Dollar
	Trillion	in Billion	Trillion	in Billion
2001	13.4	111.22	0.47	3.901
2002	15.1	125.33	0.61	5.063
2003	15.5	128.65	0.75	6.225
2004	17.2	142.76	1.1	9.13
2005	18.5	153.55	1.1	9.13
2006	21	174.3	1.3	10.79
2007	23.9	198.37	1.6	13.28
2008	24.8	205.84	1.6	13.28
2009	19.1	158.53	-0.368	-3.0544
2010	18.9	156.87	0.24	1.992
2011	18.9	156.87	0.46	3.818
2012	18.5	153.55	0.36	2.988
2013	22	182.6	1	8.3
2014	25.6	212.48	1.9	15.77
2015	27.2	225.76	2.3	19.09
2016	28.4	235.72	2.4	19.92
2017	27.5	228.25	1.9	15.77
2018	29.3	243.19	2.5	20.75
2019	30.2	250.66	1.9	15.77
2020	29.8	247.34	2.1	17.43
2021	27.2	225.76	2.2	18.26
2022	31.3	259.79	2.8	23.24
2023	37.1	307.93	2.4	19.92
Currency rate: 1 Japanese Yen (JPY) = 0,0083 US Dollar
Source: Toyota Annual Report 2001-2023

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Based on the Financial performance, the company always showed a positive performance from 2001 to 2023 except in 2009, Toyota experienced a financial loss. In 2001, the revenue of Toyota was just 13.4 trillion yen, or equivalent to 111.22 billion US Dollars, meanwhile, the net income in 2001 was just around 0.47 trillion Yen or equivalent to 3.901 billion US Dollars. Statistically, based on the Toyota annual report from 2001 to 2022, the net income and revenue of this company always positively grow. In 2023, the revenue of Toyota has become 37.1 trillion Yen, or equivalent to 307.93 billion US Dollars, meanwhile, the net income has become 2.4 trillion yen or equivalent to 19.92 billion US Dollars.

Financially, some financial indicators can be measured, namely Debt to Equity ratio (DER), Debt to Asset ratio (DAR), and Net Profit Margin (NPM). Debt to Equity (DER) and debt to the asset (DAR) measure the structure of debt/ liabilities to the assets/equity of the company. The smaller value, the better and healthier the financial structure.

Based on the average value of Toyota’s DER from 2001 to 2023, the value of this variable is around 1.580. This means that every one dollar of equity contains 1.58 US dollars of liabilities. Meanwhile, the Debt to assets (DAR) ratio is about 0.6. Basically, this value means that every one dollar of asset contains 0.6 US dollars of liabilities, or the percentage of liabilities is 60% of assets. The Net Profit Margin (NPM), This indicator, expresses the efficiency in doing their business. The average value of Toyota is about 0.057. Financially, the average value means that every one dollar of revenue can become net income/profit in 0.057 US dollars, or the percentage of net income is about 5.7 % of revenue.

Bibliography of Toyota Financial Performance from Time to Time

Toyota. 2023. Annual Report. Accessed via on https://global.toyota/en/ir/library/annual/archives/ March 22nd, 2024.

Wikipedia. 2023.Toyota. Accessed via https://en.wikipedia.org/wiki/Toyota  on March 22^nd, 2023.

Wikipedia. 2023.  Kiichiro Toyoda. Accessed via https://en.wikipedia.org/wiki/Kiichiro_Toyoda  on March 22^nd, 2023.