Tuesday, June 23, 2009

Profitability Raitos from Yahoo Finance

I calculated the profitability ratios of Toyota using statistics from Yahoo Finance.

Net Profit Margin = 17,146,000/262,394,000 = 6.53%
Gross Profit Margin = 262,394,000 – 214,795,000/262,394,000 = 18.14%
ROA = 17,146,000/323,968,000 = 5.29%
ROE = 17,146,000/118,470,000 = 14.47%

Toyota has good profitability ratios. As you can see they are generating about $0.14 off of every dollar of equity invested in the company. Also, the company’s ROA indicates that they are generating $0.05 for every dollar of assets that they have. I do want to point out that these numbers are from the income statement and balance sheet for Toyota from March 2008.

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