Toyota had $52.417 billion in cash on hand as of 2020, a 0.07 percent decrease from 2019.
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How is Toyota’s financial situation?
Government assistance is unavoidable, according to United Auto Workers and American automakers. Taxpayer-funded cash infusions are required to safeguard a crucial industry, keep people employed, and preserve Detroit’s status as one of business’ “shining beacons.”
Despite these allegations, the biggest automaker in the world managed to earn $245 billion in revenue for the fiscal year 2021 in addition to continuing to exist independently. Toyota Motor Corp. (TM) earns money through three main business divisions: production of non-automobiles machinery and other ventures, financial services, and automotive.
Key Takeaways
- In 2021, Toyota recorded global sales of $27.2 trillion yen, or roughly $245 billion.
- Toyota generates about 90% of its revenue from the selling of automobiles. The company’s financial services division and other commercial operations account for a smaller share of its revenue.
- Toyota also produces forklift trucks and other industrial machines in addition to passenger cars.
- Toyota passed Volkswagen to take the title of biggest automaker in the world in 2021.
- The Toyota Camry, which is the most popular sedan in the US, is made by Toyota.
How much debt does Toyota have?
Toyota’s long-term debt in 2021 increased by 28.5 percent from 2020 to $126.407 billion. Toyota’s long-term debt in 2020 was $98.375 billion, up 3.6% from the previous year. Toyota’s long-term debt in 2019 increased from $94.959B in 2018 by 5.44 percent.
The value of the Toyota Corporation
In terms of sales and output, Toyota Motor Corporation is one of the top automakers in the world. Its product line includes a wide variety of models, including trucks, minivans, and passenger cars, as well as corresponding parts and accessories. In addition to cars with combustion engines, the company is also developing fuel cell and automated cars. By 2025, it intends to give buyers of Toyota or Lexus models an electrified model or electrified alternative. Automotive, Financial Services, and All Other are the three divisions into which the company’s operations are divided. The automotive division of Toyota serves not just the home market but also those in the Middle East, North America, Europe, and Asia. Toyota has R&D facilities in the US, Japan, China, and Europe that it uses to create new and improved vehicles. Additionally, the firm operates a number of manufacturing plants around the world that create vehicles under the Toyota, Lexus, Hino, and Daihatsu brands, among others.
How much money does Toyota make?
Over the course of a year, global retail sales climbed by 4.7 percent to 10.38 million vehicles.
Toyota boosted its profits in the just ended fiscal year despite rising expenditures for personnel, R&D, and depreciation as well as rising costs for raw materials and logistics. Lower marketing expenses and favorable exchange rates provided a counterbalance to the cost increase.
Even though it anticipates record retail sales, the ever-conservative carmaker predicted that operational profit and net income will decline in the current fiscal year ending March 31, 2023.
Toyota anticipates that the cost of raw materials will more than double from where it was last year. Additionally, the forecast is hampered by concerns about inflation in areas like the United States, continuing issues with the semiconductor supply chain, pandemic lockdowns in China, and the ongoing conflict in Ukraine.
“According to Chief Communications Officer Jun Nagata, these factors will be exacerbated. “Making a projection for this fiscal year will be significantly more challenging than in previous years.
According to CFO Kenta Kon, Toyota would try to protect its suppliers against increases in the price of raw materials by picking up the tab. According to executives, the corporation would also exercise caution when it comes to increasing sticker prices to pass the expense on to customers. While some markets and models might be able to handle price rises, other markets and models won’t.
Executives refused to provide more information. Nagata, however, asserted that Toyota’s strength lies in its ability to offer a broad portfolio of vehicles, ranging from pricey compacts to opulent SUVs. Even during a time of inflation, he claimed, the business has something to offer in nearly everyone’s price range.
In the current fiscal year, Toyota anticipates operational profit to decline to 2.40 trillion yen ($19.69 billion) and net income to return to 2.26 billion yen ($18.54 billion).
However, Toyota also anticipates a 3.1 percent increase in global retail sales to 10.7 million. If accomplished, the automaker would set a new record.
As it ramped up manufacturing to make up for lost output from the previous two fiscal years, Toyota managed to squeak out a 6.2 percent rise in global output to 10.06 million vehicles in the just ended fiscal year.
Due to the pandemic, global production decreased by 2.2% in the fiscal year that concluded on March 31, 2020. The following fiscal year saw an 8.9 percent decline as the chip scarcity made things worse.
However, for the months of January through March, global output decreased by 0.5 percent as a result of supply disruptions brought on by the pandemic, a supplier cyberattack, ongoing semiconductor shortages, and an earthquake that hampered the flow of parts.
In an effort to achieve a more “fair pace of output as the chip scarcity and pandemic continue to strain the industry, Toyota has stated that it will not rush in its quest to regain lost production, slowing the pace of recovery from April to June.
Does Toyota have money issues?
The estimated loss would result in a decline in Toyota operating income of 80% year-over-year, from $22.7 billion in 2020 to $4.6 billion in 2021. Akio Toyoda, president of Toyota, stated during a press conference that the virus “has caused us a deeper shock than the global financial crisis of 2008.”
Who is Toyota’s principal rival?
Honda, a well-known brand in the automotive industry, has its headquarters in Japan and produces motorcycles, aviation, and power equipment. It leads the globe in the production of powerful automobiles. Honda not only designs, manufactures, and sells the vehicles, but also offers fantastic after-sales support to their clients.
About 14 million internal combustion engines are produced by the company annually; Honda is the largest internal combustion engine manufacturer. One of the company’s greatest achievements is the Research and Development division of Honda, which is exceptional and constantly working to produce fantastic vehicles. The designs are a huge hit with consumers.
To keep up with the demands of technology, each of their vehicles is likewise equipped with cutting-edge equipment. About 100 different car models are included in their extensive product line, along with other vehicles like bikes and scooters. Honda is regarded as one of the main rivals to Toyota because of their reputation and significant market share.
What is the entire debt of Tesla?
As an investor, you should first take Tesla’s debt situation and industry experience into account. Large sums of money are needed to invest in the actual manufacturing process for automakers. Ford (F) is the only American automaker to have filed for bankruptcy since 1800, though.
Tesla needs to use debt to finance its growth. Tesla reported total liabilities of $30.5 billion as of December 31, 2021. The debt accumulated by the business increased by 7% between 2020 and 2021. Since Tesla had over $10 billion in accounts payable at the end of 2020almost a 40 percent increase from the previous yearthe majority of this debt is due soon. Additionally, Tesla reported $925 million in customer deposits for products that have not yet been delivered, $1.4 billion in deferred revenue, and over $5.7 billion in accruing short-term liabilities.
As for long-term liabilities, at the end of 2021, Tesla held over $5 billion in long-term debt and leasing commitments. The company’s entire debt is made up of about 1/3 noncurrent debt and the remaining debt has a 12-month payoff period.
At the end of 2021, Tesla held assets worth less than $18 billion in cash. The majority of the company’s assets are, as might be expected, linked to long-term, illiquid assets. Tesla’s cash on hand declined by roughly $2 billion from 2020 and 2021, despite a minor increase in the company’s total current assets.
Does Apple owe any money?
Apple’s most recent balance sheet, which was published on October 29, 2021, shows that the company has a total debt of $124.72 billion, consisting of $109.11 billion in long-term debt and $15.61 billion in short-term debt. The company’s net debt is $89.78 billion after accounting for cash equivalents of $34.94 billion.
Here are some of the words we used in the previous paragraph defined. Long-term debt is the portion of a company’s debt that is due after more than a year, whereas current debt is the fraction that is due immediately. Cash and any liquid securities with maturities of 90 days or less are considered cash equivalents. Current debt plus long-term debt less cash equivalents equals total debt.
Shareholders look at the debt ratio to determine the level of financial leverage a company has. With $351 billion in total assets, Apple’s debt-to-assets ratio is 0.36. A debt-to-ratio greater than one, in general, denotes that a sizable percentage of debt is financed by assets. The risk of loan default rises along with the debt-to-income ratio in the event that interest rates rise. Varied industries have different debt-to-income ratio tolerance limits. A debt-to-income ratio of 25% may be higher or average depending on the sector.
Toyota: $59.47 Billion
Toyota is now the richest automobile manufacturer in the world after defeating Mercedes-Benz to claim the top spot. This year, despite major network annoyances caused by the Coronavirus outbreak, there was a significant ricochet back. Additionally, the majority of automakers worldwide had to deal with delivery issues due to a lockdown that the association required and a labor shortage. Toyota saw significant volume growth as a result of muted demand and the ongoing recovery of the overall economy, particularly in China.
Mercedes Benz: $58.2 Billion
Mercedes-Benz, the German luxury automaker that once held the title of richest automaker, fell to second place this year with a brand value of $58.2 billion. Mercedes-respect Benz’s sales have decreased by over $7 billion from their previous high points of $65.04 billion every 2020. In addition, Mercedes has been at the forefront of several mechanical advancements that the association has made throughout the course of its many extended periods of production. Mercedes-Benz has a manufacturing facility in Germany, but the association has factories all over the world. Most significantly, Mercedes-Benz operates 93 handling facilities spanning 17 nations and four landmasses.
Volkswagen: $47.02 Billion
Despite maintaining its third-place ranking this year, Volkswagen has a brand value of USD 47.02 billion. Since the previous year, Volkswagen’s image respect has increased by around $2 billion. Volkswagen is also well-known for its infamous Beetle vehicle. German automaker Volkswagen, founded in 1937, operates 136 social event plants throughout the world. Also known as VW, has aims to produce and distribute commercial and utility cars in 150 different nations.
BMW: $40.44 Billion
The world’s fourth-largest automaker is a German company called BMW, which stands for Bayerische Motoren Werke AG. The corporation helped the affiliation maintain its momentum from the previous year, but starting in 2021, the affiliation’s value will decline by USD 0.04 billion.
Over a century ago, in 1916, BMW, the world’s leading luxury manufacturer of automobiles and cruisers, entered the scene. Finally, according to the affiliate website, the BMW Group has 31 development and social event work environments in 15 undisputed countries worldwide.
Porsche: $34.32 Billion
Porsche, regarded as the fifth most valuable automaker and another German brand owned by Volkswagen. For instance, Porsche’s brand value is projected to increase to $34.32 billion in 2021 from $33.91 billion in 2020.
There are currently 7000 licenses held by this company worldwide, and 400 new licenses are added each year. The company also has six assembly sites in various countries.
Tesla: $31.98 Billion
With a 2021 valuation of USD 31.98 billion, Tesla has climbed four spots this year to take the sixth position on the list of the richest automotive firms in the world. Tesla’s worth, though, increased by 150 percent from USD 12.41 billion the year before. Additionally, Tesla is becoming one of the world’s top manufacturers of luxury vehicles at the current rate of its valuation. Tesla is an American energy and automotive firm that also happens to be the biggest producer of electric cars worldwide. Above all, Tesla will establish ZETA (Zero Emission Transport Association) in 2020 with 27 other businesses in order to convert all internal combustion vehicles to electric. Furthermore, Tesla’s name consistently ranks at the top of investors’ lists as it strives to become one of the most successful automakers internationally.
Elon Musk, the prominent CEO of the company, serves as both its public face and a key investor, owning a 22 percent interest in Tesla. For instance, Tesla’s Roadster, its first vehicle, was released in 2009. Additionally, Tesla has 598 retail sites spread out across the globe.
Honda: $31.36 Billion
Honda, a Japanese automaker that also sells bikes and effect gear, is listed sixth on the list of the most expensive auto brands in the world. For instance, Honda’s valuation appeared different from the prior year, hardly declining from $33.10 billion in 2020 to $31.36 billion in 2021. In addition, Honda was the first Japanese company to launch a dedicated luxury brand in 1986. Honda has expanded its operations beyond the auto and cruiser industries.
Ford: $22.67 Billion
American carmaker Passage Motor Company is ranked eighth with a current-year valuation of $22.67 billion, up from $18.51 billion in 2020. Henry Ford founded Portage Motors in 1903, making it one of the oldest automotive businesses in the country. In particular, Portage distributes automobiles and commercial vehicles under the Ford name, and luxury automobiles under the devoted name “Lincoln luxury.”
Volvo: $17.75 Billion
Volvo, a Swedish company with a general societal connection, is now ranked eighth this year. The Geely Holding Group, a Chinese company involved in the entire car industry, is currently having a significant negative impact on Ford Motors, which was actually referred to as Volvo. This enormous company, which currently manages operations in 18 nations, first arrived 100 years earlier, in 1915, as an aid to the manufacturer of metal rollers SKF.
Audi: $17.18 Billion
On the list of the wealthiest automakers in the world, Audi, a German producer of luxury vehicles, comes in at number 10. Additionally, the valuation of Audi increased marginally from $16.97 billion in 2020 to $17.18 billion in 2021.
As a member of the Volkswagen Group, Audi AG designs, develops, and produces high-end vehicles in 19 facilities across 12 countries, selling them to more than 100 different countries worldwide. Additionally, Audi operates seven collection facilities across the globe. Two or three are affiliated with other VW Group entities. Ingolstadt and Neckarsulm, two of Germany’s most prominent creation hubs, are home to the Audi Group.
Hyundai: $14.29 Billion
This year, Hyundai is the first South Korean carmaker to appear on the list of the top automobile brands in the world. In addition, Hyundai’s plant in Ulsan, South Korea, is the biggest integrated auto production facility in the world.
A maximum of 1.6 million units can be produced annually at the Ulsan factory. Additionally, Hyundai and Ford Motor Company collaborated to create the “Cortina,” the company’s first model vehicle, in 1968. Hyundai has a global dealer network, a regional dealer organization, and its automobiles are effectively operating in 193 nations.