The review of Net Profit Marginwitnessed a fluctuating trend. The Net Profit Margin improved from6.82% in 2019 to 10.97% in 2023.
The average EBIT Margin for the period under analysis was 11.66%, with 2019 and 2023performing the worst and best, respectively.
In the current year, TOYOTA was able to cover its interest liabilities 69.94 times – compared to 2019 when it was 58.64 times.
The Asset turnover stood at 0.53 times in 2023 from 0.56 in 2019,implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of TOYOTA has fluctuatedyear on year. The revenue decreased by 8.88% between 2019 and 2020 and a further 18.40% increase was recorded between 2021 and 2022. There also occurred an increase of 21.37% between 2022 and 2023 (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 good, as current ratio increased from 1.10:1 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 behigh as it stood at 113% in the current year.
