'Toyota Company Analysis\r'

'Toyota Motor Company has been a gruelling competitor in the global travel merchandise since its inception in 1937. Today Toyota has change state a globally recognized brand and has win the coveted spot as the worlds top merchandising railway car manufacturer, with 17% total marketplace shargon. disrespect many challenges Toyota has remained relatively financially st open consistent with the S&P 500 and continues to house low cost high faculty vehicles sympathetic to various demographics with the instruction execution of a high finis luxury line (Lexus) as well as a line catering towards the younger market (Scion).Toyota Motor Company prides itself on the successful implementation of a lean manufacturing system including a unmatched of a kind just in time production system. The success of their inventory management and square supply chain is apparent through their strong sales to inventory ratio and inventory perturbation average between 10 to 15 days. Toyota has as well exhibited consistently positive EVA rates which indicates high efficiency and value per capital. Although this practice has cut costs for the confederacy, it has likewise affected sales in a forbid light.In 2010 and 2011 when natural disasters hit the areas of their suppliers, Toyota did not have full parts to complete necessary purchase orders and lionise up with consumer demand. For this reason the sales figures from those years are lower than what they were anticipated to be. in spite of these challenges, investors should maintain convinced(p) in the efficiency of their invested capital in Toyota, delineated by a continuously rising hard roe in comparison to its competitors.Toyotas dividend yield ratio is really attractive to investors as well with 1. 3% compared to the sedulousness average of 1. 1% scorn a probatory drop in 2008. When looking at the auto industry, investors should take into consideration that Toyota remains competitive despite not receiving the government bailouts provided to the American manufacturers. Toyota features various threats specifically their slow pace in innovation and complex body part 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 focal point of consideration of many analysts and investors is the unpredictability of the Yen. When looking at Toyotas 1 year harvest-tide 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 value of the Yen becoming less(prenominal) powerful, Toyota has the opportunity to leverage this to their advantage through relationships with suppliers and alter export profitability. The future success of Toyota will work out on whether or not they are able to keep up with the fuel economy and condom features of other manufacturers. If they are able to do this efficaciously while also reducing costs victimisation advantages from the diminishing value of the Yen the outlook for this company looks very positive for potential investors.\r\n'