Toyota Motor Corporation Essay Example | Topics and Well Written Essays - 500 words

Toyota Motor Corporation - Essay Example Capital is one of the key aspects examined here. The company profitability in 2011 has gone down and capital funding reduced. It has a large capital reserve .the first quarter has experienced a decrease of 17.2% in sales. This indicates future drops and forecast with the economic times. Debt to equity ratio is 0.69. This indicates that the company is more funded with equity than debts. Current ratio of is 1.0 in the past one year. This indicates that the company has liquidity value overall. There have not been significant changes in its shareholders equity within the first quarter. This indicates that the shareholders have not forsaken their duties in this company. Character is analyzed in terms of the willingness to repay the loan. A credit report is generated on Toyota’s borrowings, tax remittances, any court proceedings on default, past loaners, and overall honoring the debts. The length of the present debt is analyzed as well as the amount owed. Toyota is current paying a fine of $16.4 million for a recall suit. This has jeopardized the power leadership in the automobile industry. FICO scores of 300-800 are used and it is said, the higher the score the better the customer is worth. Collateral is the asset or guarantee placed that can be seized by the company in case the customer default in repayments. At Toyota, current assets and fixed assets stands at 28 387 556 yen a drop from last year’s value of 29 million yen.