Toyota Company Analysis

Toyota Motor Company has been a strong competitor in the global automobile securities industry since its inception in 1937. Today Toyota has kick the bucket a globally recognized brand and has won the coveted temporary hookup as the worlds top selling auto manufacturer, with 17% total market share. patronage many challenges Toyota has remained relatively financially stable consistent with the S&P 500 and continues to provide low cost high might vehicles appealing to various demographics with the carrying into action of a high end high life string (Lexus) as well as a line ply towards the younger market (Scion).Toyota Motor Companyprides itself on the successful implementation of a lean manufacturing system including a one of a genial just in time production system. The success of their inventory instruction and strong supply chain is apparent through with(predicate) their strong gross sales to inventory ratio and inventory turnover average between 10 to 15 days. Toyota h as also exhibited consistently positive EVA rates which indicates high might and assess per capital. Although this practice has cut costs for the company, it has also affected sales in a negative light.In 2010 and 2011 when natural disasters hit the surface areas of their suppliers, Toyota did not defend enough parts to complete necessary purchase orders and keep up with consumer demand. For this reason the sales figures from those years are lower than what they were anticipated to be. Despitethese challenges, investors should maintain confident in the efficiency of their invested capital in Toyota, stand for by a continuously rising ROE in analogy to its competitors.Toyotasdividend yield ratio is very attractive to investors as well with 1. 3% compared to the industry average of 1. 1% despite a significant drift off in 2008. When looking at the auto industry, investors should take into consideration that Toyota trunk competitive despite not receiving the government bailouts provided to the American manufacturers. Toyota features various threats specifically their slow pace in innovation and structure reform.Another notable area of concern is the diminishing market share of their high end line Lexus. Despite these threats Toyotas earning expansion is at an all time high. A central point of consideration of many analysts and investors is the irritability of the Yen. When looking at Toyotas 1 year growth of -2. 6% which is heavily understated due to the volatility of the Yen, which has effected consumer behavior as well as purchasing power.With the regard as of the Yen becoming less powerful, Toyota has the opportunity to leverage this to their advantage through relationships with suppliers and improved export profitability. The future success of Toyota will depend on whether or not they are able to keep up with the sack economy and safety features of other manufacturers. If they are able to do this in effect while also reducing costs using advantage s from the diminishing value of the Yen the outlook for this company looks very positive for potential investors.