Introduction
Toyota is one of the popular car manufacturing corporations with a wide range of production models. It is the largest automotive public company in the world, the main activity of which is the production and sale of passenger cars and trucks. The main regions of operation are Japan, with the largest share of cars, North America, Asia, and Europe. Besides, the company has many plants around the world that assemble and sell cars. The aim of this paper is to analyze the operational data of the company. To consider Toyota’s corporation’s performance, the following indicators will be analyzed: inventory turnover, days of supply, return on assets, and measures of sustainability, such as carbon footprint.
Toyota’s Performance
The company’s inventory turnover indicators are essential to be considered in order to identify the level of performance. Besides, to visualize the dynamic activity of the company, one should compare it under a certain time period. Thereby, one found the following indexes of the day’s inventory for Toyota company: in the 2018 year, it was 37,65; in 2019, the indicator was 38,27; in 2020, it formed 37,89, and in 2021 it was 43,40 (MorningStar, 2022). Thus, one may notice approximately the same indexes for three years from 2018 to 2020, with a slight deviation. However, it significantly increased in 2021 year, which may be explained by the consequences of the economic changes due to the COVID-19 pandemic.
Inventory turnover is an essential index that demonstrates the company’s operation in the context of the accountant area. This ratio indicates the number of times the organization sold and supplemented its inventory under a certain time period. Thereby, high inventory turnover indexes show that one sells and replenishes its production in a timely manner. Considering the inventory turnover indicators of Toyota company, one may notice that changes happened similarly to previous indexes in 2021. Thereby, the inventory turnover index for Toyota in 2018 was 9,69, in 2019, it slightly declined to 9,54; in 2020, it was 9,63, and in 2021 it declined to 8,41 (MorningStar, 2021). Similar to the day’s inventory level changes, inventory turnover indexes lowered, supposedly due to market fluctuations after the pandemic.
The indicator of days of supply is essential to consider in order to analyze how long the inventory on hand lasts. Moreover, this indicator should be analyzed in the context of competitiveness. Thus, it should be compared with competitor indexes. Thereby, the Toyota brand availability based on the days of supply indicator for 2021 was 18 (MorningStar, 2021). In contrast, the same indicator for Alfa Romeo was 92,5; for Fiat, it was 84,5; for Infiniti, the index was 65, and for Audi, it was 45,5 (MorningStar, 2021). As one may notice, this index was the least for Toyota in 2021. Besides, it is important to consider the return on assets percentage under a certain time period. In 2018 this index formed 5,01; in 2019, it was 3,65, in 2020, it increased to 3,94, and in 2021 it was 3,93 (MorningStar, 2021). Therefore, the pandemic did not influence on return on assets level. Moreover, one may notice a significant decrease in 2019.
Conclusion
Finally, one should consider the carbon footprint level since it shows the environmental responsibility of the company. As the climate change issue has become urgent over the last years, many companies implemented related measures. Similarly, Toyota company is going to reduce its carbon footprint from cars by shifting to electric and hybrid vehicle production. Besides, Toyota aims to reduce carbon emissions from the production process by using modern environmental methodologies.
Reference
MorningStar. (2022). Toyota Motor Corp ADR. Web.