The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin moved from6% in 2020 to 11.2% in 2024.
The average EBIT Margin for the period under analysis was 11.9%
In the current year, Toyota was able to cover its interest liabilities 51.6 times – compared to 2020 when it was 0 times.
The Asset turnover stood at50 times in 2024 from 0.039 in 2020, implying a fair on Assets of the business in relation to revenue.
Profitability
The revenue of Toyota has fluctuated year on year. The revenue decreased by 44% between 2020 and 2021 and a 18.40% increase was recorded between 2022 and 2023. There also occurred a increase of 21.37% between 2023 and 2024 (the current period).
Toyota’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks fair, as current ratio increased from 10:1 to 1.19:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Toyota is both equity and debt financed.
The debt-to-equity (D/E) ratio has been mixed year on year. The gearing position of the company appears to be moderate as it stood at 1.04% in the current year.
