Financial analysis of some company

1.0 Content

NOTOPICPAGES

1.0CONTENTS2

2.0INTRODUCTION3-13

3.0BODY13-27

4.0CONCLUSION27-28

5.0REFERENCES28-29

6.0COURSEWORK29-35

2.0 IntroductionBackground of General Motors Company

General Motors Company, commonly known asGM, is an Americanmultinationalholding corporationheadquartered inDetroit, Michiganthat, through its subsidiaries, designs, manufactures, markets and distributes vehicles and vehicle parts and sells financial services. General Motors produces vehicles in 37 countries under eleven brands, includingChevrolet,Buick,GMC,Cadillac,Baojun,Holden,Isuzu,Jie Fang,Opel,Vauxhall, andWuling. General Motors employs 202,000 people and does business in 157 countries.General Motors is divided into five business segments:GM North America(GMNA),GM Europe(GME),GM International Operations(GMIO),GM South America(GMSA), andGM Financial. General Motors led global vehicle sales for 77 consecutive years from 1931 through 2007, longer than any other automaker, and is currently among the world's largest automakers by vehicle unit sales.General Motors acts in most countries outside the USA via wholly owned subsidiaries, but operates inChinathrough 10 joint ventures. GM'sOnStarsubsidiary provides vehicle safety, security and informations services.In 2009, General Motors shed several brands, closing Saturn and Pontiac, and emerged from a government backed. In 2010, GM made aninitial public offeringthat was one of the world's top 5 largest IPOs to date and returned to profitability later that year.In 2012, a trust representing unsecured creditors of"old" GMfiled a lawsuit against GM over payments made to hedge funds in 2009 in exchange for waiving of claims against GM's Canadian subsidiary. The deal, of which presiding judgeRobert Gerbersays he was unaware - despite its disclosure in an SEC filing on the day GM sought Chapter 11 protection - could prompt a reopening of the 2009 case.

*The longest-lived continuous automobile nameplate still in production in the world is theChevrolet Suburban

Brand reorganizationBrandYear foundedYear began making autosYear joined GMMarkets served today

GMC190119011909North America, Middle East

Chevrolet191119111911Global, except Australia, New Zealand

Cadillac190219021909North America, Europe, Asia, Middle East

Buick189919031908North America, China, Israel

Vauxhall185719031925United Kingdom

Opel186218991929Africa, Asia, Europe, South America

Wuling200220022002China

Jiefang201120112011China

Baojun201020102010China

Holden185619081931Australia, New Zealand

Background of Fiat

Fiat S.p.A.is an Italianautomobile manufacturerbased inTurin(Fabbrica Italiana Automobili Torino). Fiat was founded in 1899 by a group of investors, includingGiovanni Agnelli. During its more than century-long history, Fiat has also manufactured railwayenginesand carriages,military vehicles, farmtractors, andaircraft. In 2011, Fiat was the fourth largest European automaker by production behindVolkswagen Group,PSA, and Renaultand the eleventh largest automaker by production in the world. Fiat has acquired numerous other companies; e.g., it acquiredLanciain 1968, became a shareholder ofFerrariin 1969, took control ofAlfa Romeofrom the Italian government in 1986, purchasedMaseratiin 1993, and became the majority shareholder ofChryslerin 2011.Fiat-based cars are built around the world. Outside Italy, the largest country of production is Brazil, where the Fiat brand is the market leader.The group also has factories in Argentina and Poland and a long history of licensing production of its products in other countries. It also has numerous alliances and joint ventures around the world, the main ones being located in Italy, Serbia, France, Turkey, India and China.Agnelli's grandsonGianni Agnelliwas Fiat's chairman from 1966 until 1996; he then served as honorary chairman from 1996 until his death on 24 January 2003, during which timeCesare Romitiserved as chairman. Until their removal, Paolo Fresco served as chairman and Paolo Cantarella as CEO.Umberto Agnellithen took over as chairman from 2003 to 2004. After Umberto Agnelli's death on 28 May 2004,Luca Cordero di Montezemolowas named chairman, with Agnelli heirJohn Elkannbecoming vice chairman (at the age of 28), and other family members also serving on the board. At this point, CEO Giuseppe Morchio resigned, andSergio Marchionnewas named to replace him on 1 June 2004.In September 2010, shareholders approved a plan to split Fiat's capital goods businesses from the group. Agricultural and construction equipment manufacturerCNH GlobalNV, truck makerIveco, and the industrial and marine division ofFiat Powertrain Technologieswere spun off into a new group on 1 January 2011. The parent company,Fiat IndustrialS.p.A., was listed on the Milan stock exchange on 3 January 2011. In 2010, credit rating agencyFitchcut Fiat's debt rating to BB- after it had accumulated a debt of around9.3 billion. In 2013, Fiats debt rating was cut again, this time byMoody's, to Ba3over concerns European demand was lower and debt was falling slower than expected.TheFinancial Timesestimate of Fiats debt at the time was almost28 billion.

Enterprise Outside ItalyFiat Automveis (Brazil), Fiat Argentina, Fiat Automobili Srbija, Polski Fiat/FSO (Poland), AutoVAZ Lada (Russia), Sollers, Bulgaria, Tofa (Turkey), SEAT (Spain), Ethiopia, Egypt, India, Pakistan, Sri Lanka, North Korea, China.

Background of Daimler AG

Daimler AG(helpinfo)(German pronunciation:[daml ae]; formerlyDaimlerChrysler) is aGermanmultinationalautomotive corporation. Daimler AG is headquartered in Stuttgart, Baden-Wrttemberg, Germany. By unit sales, it is the thirteenth-largestcar manufacturerand second-largest truck manufacturer in the world. In addition toautomobiles, Daimler manufacturesbusesand provides financial services through itsDaimler Financial Servicesarm.As of 2013, Daimler owns or has shares in a number of car, bus and truck marques includingMercedes-Benz,Mercedes-AMG,Smart,Freightliner,Western Star,Thomas Built Buses,Setra,BharatBenz,Mitsubishi Fuso, as well as shares inDenza,KAMAZ,Renault-Nissan Alliance. At the end of 2012, the company closed theMaybachmarque.

HistoryDaimler AG is a German manufacturer of automobiles, motor vehicles, and engines, which dates back more than a century.AnAgreement of Mutual Interestwas signed on 1 May 1924 betweenBenz & Cie(founded 1883) ofKarl BenzandDaimler Motoren Gesellschaft(founded 1890) ofGottlieb DaimlerandWilhelm Maybach.Both companies continued to manufacture their separate automobile and internal combustion engine brands until, on 28 June 1926, when Benz & Cie. and Daimler Motoren Gesellschaft AG formally mergedbecomingDaimler-BenzAGand agreed that thereafter, all of the factories would use the brand name ofMercedes-Benzon their automobiles.In 1998, Daimler-Benz and Chrysler Corporation announced the world's largest cross-border deal ever, valued atUS$38billion,and the resulting change in company name to DaimlerChrysler AG.In 2007, when the Chrysler group was sold off toCerberus Capital Management(see below), the name[note 1]of the parent company was changed to simply "Daimler AG".

Timeline of Daimler AG Benz & Company, 18831926Daimler Motoren Gesellschaft AG, 18901926Daimler-Benz AG, 19261998DaimlerChrysler AG, 19982007Daimler AG, 2007present

Formulae oneOn November 16, 2009 Daimler purchased a 75.1% stake inBrawn GP. The company was rebranded asMercedes GP. Ross Brawn will remain team principal and the team will be based in Brackley, UK. However the purchase of Brawn meant that Daimler back its stake inMcLarenin stages that ended in 2011. Mercedes will continue to provide sponsorship and engines to McLaren until 2015. Mercedes owns 45.1% of the new company with 30% for Aabar Investments and 24.9% for Ross Brawn. The racing team has signed the former champion Lewis Hamilton as a replacement to Michael Schumacher who retired at the end of 2012.

Background of Toyota Motor Corporation

Toyota Motor Corporationis a Japanesemultinationalautomaker headquartered inToyota, Aichi, Japan. In 2010, Toyota employed 325,905 people worldwide,and was the third-largestautomobile manufacturer in 2011 by production behindGeneral MotorsandVolkswagen Group.Toyota is theeleventh-largest company in the world by revenue. In July 2012, the company reported it had manufactured its 200-millionth vehicle. The company was founded byKiichiro Toyodain 1937 as a spinoff fromhis father'scompanyToyota Industriesto create automobiles. Three years earlier, in 1934, while still a department ofToyota Industries, it created its first product, theType A engine, and, in 1936, its first passenger car, theToyota AA. Toyota Motor Corporation group companies are Toyota (including theScionbrand),Lexus,Daihatsu, andHino Motors,along with several "nonautomotive" companies.TMC is part of theToyota Group, one of the largest conglomerates in the world.

HistoryToyota was started in 1933 as a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of the founder's son,Kiichiro Toyoda.Its first vehicles were theA1passenger car and theG1in 1935. The Toyota Motor Co. was established as an independent company in 1937. In 2008, Toyota's sales surpassedGeneral Motors, making Toyota number one in the world. In 1924,Sakichi Toyodainvented the Toyoda Model G Automatic Loom. The principle ofJidoka, which means the machine stops itself when a problem occurs, became later a part of theToyota Production System. Looms were built on a smallproduction line. In 1929, the patent for the automatic loom was sold to a British company, generating the starting capital for the automobile development.

*Toyoda Standard Sedan AA 1936

In September 1936, the company ran a public competition to design a new logo. Of 27,000 entries, the winning entry was the three Japanesekatakana letters for "Toyoda" in a circle. ButRisabur Toyoda, who had married into the family and was not born with that name, preferred "Toyota" because it took eight brush strokes (a lucky number) to write in Japanese, was visually simpler (leaving off thediacriticat the end) and with avoiceless consonantinstead of avoicedone (voiced consonants are considered to have a "murky" or "muddy" sound compared to voiceless consonants, which are "clear").Since "Toyoda" literally means "fertile rice paddies", changing the name also prevented the company from being associated with old-fashioned farming. The newly formed word was trademarked and the company was registered in August 1937 as the "Toyota Motor Company".

*Toyota at the Rally Dakar, 1992

By the early 1960s, the US had begun placing stiff import tariffs on certain vehicles. Thechicken taxof 1964 placed a 25% tax on importedlight trucks.In response to the tariff, Toyota,Nissan Motor Co.andHonda Motor Co.began building plants in the US by the early 1980s.

*With over 30 million sold, theCorollais one of the most popular and best selling cars in the world.

Toyota received its first Japanese Quality Control Award at the start of the 1980s and began participating in a wide variety ofmotorsports. Due to the1973 oil crisis, consumers in the lucrative US market began turning to small cars with better fuel economy. American car manufacturers had considered small economy cars to be an "entry level" product, and their small vehicles employed a low level of quality to keep the price low.With a major presence in Europe, due to the success ofToyota Team Europe, the corporation decided to set up Toyota Motor Europe Marketing and Engineering,TMME, to help market vehicles in the continent. Two years later, Toyota set up a base in the United Kingdom,TMUK, as the company's cars had become very popular among British drivers. Bases inIndiana,Virginia, andTianjinwere also set up. In 1999, the company decided to list itself on theNew YorkandLondon Stock Exchanges.In 2011, Toyota, along with large parts of the Japanese automotive industry, suffered from a series of natural disasters. The2011 Thoku earthquake and tsunamiled to a severe disruption of the supplier base and a drop in production and exports.[38][39]Severe flooding during the 2011monsoonseason inThailandaffected Japanese automakers that had chosen Thailand as a production base. Toyota estimated to have lost production of 150,000 units to the tsunami and production of 240,000 units to the floods.In October 2012, Toyota announced a recall of 7.43 million vehicles worldwide to fix malfunctioning power window switches, the largest recall since that ofFord Motor Companyin 1996. The move came after a series of recalls between 2009 and 2011 in which it pulled back around 10 million recalls amidst claims of faulty mechanics.

3.0 Body3.1 Balance Sheet For Each Company

Balance Sheet of General Motors Company (Quarterly)Period EndingJun 30, 2013Mar 31, 2013Dec 31, 2012Sep 30, 2012

Assets

Current Assets

Cash And Cash Equivalents20,764,00021,356,00019,108,00024,183,000

Short Term Investments6,258,0006,560,0008,988,00010,411,000

Net Receivables31,755,00026,181,00023,868,00016,759,000

Inventory14,777,00015,200,00014,714,00015,672,000

Other Current Assets4,191,0003,273,0003,318,0005,082,000

Total Current Assets 77,745,000 72,570,000 69,996,000 72,107,000

Long Term Investments18,916,00014,639,00013,837,00014,374,000

Property Plant and Equipment27,926,00026,932,00025,845,00028,099,000

Goodwill1,993,0001,968,0001,973,00028,408,000

Intangible Assets6,598,0006,997,0006,809,0008,904,000

Accumulated Amortization- - - -

Other Assets3,324,0003,000,0003,040,0003,564,000

Deferred Long Term Asset Charges26,608,00027,669,00027,922,000-

Total Assets 163,110,000 153,775,000 149,422,000 155,456,000

Liabilities

Current Liabilities

Accounts Payable50,060,00049,567,00048,474,00051,345,000

Short/Current Long Term Debt699,0001,756,0001,748,0002,277,000

Other Current Liabilities9,262,0005,216,0003,770,0004,001,000

Total Current Liabilities 60,021,000 56,539,000 53,992,000 57,623,000

Long Term Debt3,263,0003,419,0003,424,0003,314,000

Other Liabilities60,822,00055,482,00055,006,00051,890,000

Deferred Long Term Liability Charges- - - -

Minority Interest630,000748,000756,000970,000

Negative Goodwill- - - -

Total Liabilities 124,736,000 116,188,000 113,178,000 113,797,000

Stockholders' Equity

Misc Stocks Options Warrants- - - -

Redeemable Preferred Stock- - - -

Preferred Stock10,391,00010,391,00010,391,00010,391,000

Common Stock14,00014,00014,00016,000

Retained Earnings12,191,00011,017,00010,057,00011,533,000

Treasury Stock- - - -

Capital Surplus23,818,00023,776,00023,834,00026,443,000

Other Stockholder Equity(8,040,000)(7,611,000)(8,052,000)(6,724,000)

Total Stockholder Equity 38,374,000 37,587,000 36,244,000 41,659,000

Net Tangible Assets 29,783,000 28,622,000 27,462,000 4,347,000

*Currency in USD

Balance Sheet of Fiat (Quarterly)Period EndingSep 30, 2010Jun 30, 2010Mar 31, 2010Dec 31, 2009

Assets

Current Assets


Short Term Investments860,000700,000855,000439,000

Net Receivables7,432,0007,897,0007,537,0007,101,000

Inventory8,979,0009,319,0009,012,0008,748,000

Other Current Assets- - - 146,000



Property Plant and Equipment- - - -

Goodwill2,884,0003,087,0002,907,0002,776,000

Intangible Assets- - - -


Other Assets- - - -

Deferred Long Term Asset Charges2,521,0002,663,0002,509,0002,433,000

Total Assets 70,403,000 73,475,000 68,027,000 67,235,000

Liabilities

Current Liabilities


Short/Current Long Term Debt29,692,00030,774,00028,300,00028,527,000



Long Term Debt28,392,00029,474,00028,300,00017,916,000

Other Liabilities- - - -

Deferred Long Term Liability Charges3,951,0003,894,0003,704,0003,593,000

Minority Interest- - - -






Preferred Stock- - - -

Common Stock6,377,0006,377,0006,377,0006,377,000


Treasury Stock762,0001,108,000672,000120,000

Capital Surplus- - - -

Other Stockholder Equity- - - -

Total Stockholder Equity - - - -

Net Tangible Assets - - - -

*Currency in EUR

Balance Sheet of Daimler AG (Annual)Period EndingDec 31, 2009Dec 31, 2008Dec 31, 2007Dec 31, 2006

Assets

Current Assets


Short Term Investments5,118,000711,000- 6,000

Net Receivables8,607,00010,724,0006,135,0007,423,000

Inventory12,845,00016,805,00014,086,00018,396,000

Other Current Assets643,0001,331,000922,000479,000



Property Plant and Equipment- - - -

Goodwill694,000660,000693,0001,689,000

Intangible Assets- - - -


Other Assets- - - -

Deferred Long Term Asset Charges1,830,0002,544,0001,613,0004,772,000

Total Assets 128,821,000 132,225,000 135,094,000 217,634,000

Liabilities

Current Liabilities


Short/Current Long Term Debt58,294,00058,637,00054,967,00099,536,000



Long Term Debt13,390,00010,505,00011,905,0004,447,000

Other Liabilities- - - -

Deferred Long Term Liability Charges5,353,0004,716,0003,963,0004,927,000

Minority Interest- - - -






Preferred Stock- - - -

Common Stock3,045,0002,768,0002,766,0002,673,000


Treasury Stock11,053,0009,095,00011,296,00010,550,000

Capital Surplus- - - -

Other Stockholder Equity- - - -

Total Stockholder Equity - - - -

Net Tangible Assets - - - -

*Currency in EUR

Balance Sheet of Toyota Motor Corporation (Annual)Period EndingMar 31, 2013Mar 31, 2012Mar 31, 2011

Assets

Current Assets

Cash And Cash Equivalents18,246,00020,405,00025,105,000

Short Term Investments16,484,00015,327,00017,246,000

Net Receivables87,831,00088,000,00078,403,000

Inventory18,219,00019,713,00015,737,000

Other Current Assets5,596,0006,275,0006,243,000

Total Current Assets 146,375,000 149,720,000 142,734,000

Long Term Investments151,605,000141,364,000132,933,000

Property Plant and Equipment72,750,00075,769,00076,124,000

Goodwill- - -

Intangible Assets- - -

Accumulated Amortization- - -

Other Assets6,051,0005,600,0007,985,000

Deferred Long Term Asset Charges- - -

Total Assets 376,781,000 372,452,000 359,775,000

Liabilities

Current Liabilities

Accounts Payable47,311,00051,096,00040,892,000

Short/Current Long Term Debt79,799,00080,106,00078,803,000

Other Current Liabilities10,002,00011,961,00010,506,000

Total Current Liabilities 137,112,000 143,163,000 130,200,000

Long Term Debt77,917,00073,422,00077,814,000

Other Liabilities11,406,00010,350,00010,229,000

Deferred Long Term Liability Charges14,717,00011,044,0009,775,000

Minority Interest6,635,0006,273,0007,090,000

Negative Goodwill- - -

Total Liabilities 241,152,000 237,979,000 228,018,000


Misc Stocks Options Warrants- - -

Redeemable Preferred Stock- - -

Preferred Stock- - -

Common Stock4,216,0004,825,0004,791,000

Retained Earnings134,741,000144,809,000142,805,000

Treasury Stock(12,032,000)(13,800,000)(15,219,000)

Capital Surplus5,851,0006,691,0006,102,000

Other Stockholder Equity(3,782,000)(14,324,000)(13,812,000)

Total Stockholder Equity 128,994,000 128,201,000 124,667,000

Net Tangible Assets 128,994,000 128,201,000 124,667,000

*Currency in USD

3.2 Common-size StatementCommon Size Income Statement of General Motors CorporationSep-30-12Jun-30-12Mar-31-12Sep-30-11Jun-30-11Mar-31-11Sep-30-10Jun-30-10

Revenues100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%

Cost of goods sold87.1%86.9%87.2%86.4%85.8%87.5%86.9%86.2%

Gross profit12.9%13.1%12.8%13.6%14.2%12.5%13.1%13.8%

Selling, general and administrative8.6%8.3%10.2%8.7%7.9%9.8%8.0%8.0%

EBITDA4.5%4.8%4.3%4.9%6.2%3.7%5.1%5.7%

EBIT4.5%4.8%4.3%4.9%6.2%3.7%5.1%5.7%

Pre-tax income4.8%4.9%3.0%5.0%6.6%3.9%5.4%4.7%

Income taxes1.0%0.6%0.6%0.3%-0.2%0.4%-0.1%1.1%

Net income4.9%4.9%3.5%5.7%7.6%9.3%6.3%4.6%

Common Size Financial Ratio Statement of FiatAnnual Income Statement (values in 000's)Period Ending:Trend12/31/200612/31/200512/31/200412/31/2003

Liquidity Ratios

Current Ratio

192%222%1997%160%

Quick Ratio

148%178%1179%102%

Cash Ratio

44%42%657%27%

Profitability Ratios

Gross Margin

15%15%0%12%

Operating Margin

4%1%0%1%

Pre-Tax Margin

2%2%4%4%

Profit Margin

1%0%4%6%

Pre-Tax ROE

15%14%77%37%

After Tax ROE

8%2%77%51%

Common Size Financial Ratio Statement of Daimler AGAnnual Income Statement (values in 000's)Period Ending:Trend12/31/200912/31/200812/31/200712/31/2006

Liquidity Ratios

Current Ratio

114%106%127%183%

Quick Ratio

87%74%96%144%

Cash Ratio

21%19%45%15%

Profitability Ratios

Gross Margin

17%22%24%17%

Operating Margin

2%6%8%1%

Pre-Tax Margin

3%3%9%3%

Profit Margin

3%1%4%2%

Pre-Tax ROE

8%9%24%12%

After Tax ROE

9%5%10%9%

Common Size Income Statement of Toyota12 months endedMar 31, 2013Mar 31, 2012Mar 31, 2011Mar 31, 2010Mar 31, 2009Mar 31, 2008

Sales of products94.7994.2393.8293.5393.4094.41

Financing operations5.215.776.186.476.605.59

Net revenues100.00%100.00%100.00%100.00%100.00%100.00%

Cost of products sold-81.63-85.00-84.16-84.28-85.09-77.80

Cost of financing operations-2.86-3.19-3.31-3.76-4.81-4.06

Gross profit-84.49%-88.19%-87.48%-88.04%-89.90%-81.86%

Selling, general and administrative-9.53-9.90-10.06-11.18-12.35-9.50

Operating income (loss)5.99%1.91%2.47%0.78%-2.25%8.64%

Interest and dividend income0.450.540.480.410.670.63

Interest expense-0.10-0.12-0.15-0.18-0.23-0.18

Foreign exchange gain (loss), net0.030.200.080.36-0.010.03

Other income (loss), net0.01-0.200.100.16-0.920.14

Other income (expense)0.38%0.42%0.50%0.76%-0.48%0.63%

Income (loss) before income taxes and equity in earnings of affiliated companies6.36%2.33%2.97%1.54%-2.73%9.27%

Provision for income taxes-2.50-1.41-1.65-0.490.27-3.47

Equity in earnings of affiliated companies1.051.061.130.240.211.03

Net income (loss)4.91%1.98%2.45%1.29%-2.25%6.83%

Net (income) loss attributable to non-controlling interests-0.55-0.46-0.30-0.180.12-0.30

Net income (loss) attributable to Toyota Motor Corporation4.36%1.53%2.15%1.11%-2.13%6.53%

3.3 Financial RatioFinancial Ratio of General Motors CompanyJun 201320122011201020092008

Earnings/Share2.923.243.883.03

Profit Margin, %3.124.066.184.550.000.00

Return on Equity, %16.3316.7223.8216.610.000.00

Return on Assets, %3.034.146.424.440.000.00

Price/Sales0.310.300.290.40

Price/Earnings11.967.257.2811.350.000.00

Price/Book1.680.991.131.460.00

Debt/Equity0.430.280.300.270.250.00

Interest Coverage28.89-60.8812.086.220.000.00

Book Value, $28.3723.6324.9223.640.000.00

Dividend Payout, %0.000.000.000.000.000.00

Financial Ratio of FiatJun 2013201220112010200920082007

Earnings/Share0.430.630.710.27-0.722.432.15

Profit Margin, %0.241.682.771.67-1.692.903.51

Return on Equity, %3.5110.7113.475.14-7.7617.4122.79

Return on Assets, %0.491.722.060.85-1.303.073.66

Price/Sales0.000.090.000.000.110.140.00

Price/Earnings18.748.4010.1818.15-10.635.320.00

Price/Book0.870.000.000.310.490.000.00

Debt/Equity0.002.122.132.572.061.692.16

Interest Coverage1.362.242.380.000.000.000.00

Book Value, $0.000.000.0015.8315.560.0012.62

Dividend Payout, %0.000.000.000.000.0017.380.00

Financial Ratio of Daimler AGJun 2013201220112010200920082007

Earnings/Share6.477.747.405.78-3.602.246.35

Profit Margin, %6.135.335.664.78-3.351.474.01

Return on Equity, %13.3613.3914.5812.32-8.314.3210.42

Return on Assets, %3.393.744.073.44-2.051.072.95

Price/Sales0.420.500.440.450.370.410.00

Price/Earnings11.466.658.349.51-11.1526.750.00

Price/Book1.510.941.141.160.931.200.00

Debt/Equity1.150.950.860.731.040.950.83

Interest Coverage24.105.477.705.51-1.935.1020.13

Book Value, $48.9554.9154.0147.2843.3449.9250.19

Dividend Payout, %0.000.000.000.00-22.12147.1938.27

Financial Ratio of ToyotaJun 2013201320122011201020092008

Earnings/Share8.437.352.263.041.46-1.419.74

Profit Margin, %5.324.361.532.151.11-2.136.53

Return on Equity, %9.617.532.563.741.92-4.3414.47

Return on Assets, %3.532.710.931.370.69-1.505.29

Price/Sales0.790.780.530.530.610.600.00

Price/Earnings14.8511.5833.1725.1754.51-56.730.00

Price/Book1.460.990.880.911.061.220.00

Debt/Equity0.000.570.550.590.640.630.50

Interest Coverage329.6062.1719.8820.199.73-10.9653.85

Book Value, $0.0085.7585.0383.7674.9265.3261.96

Dividend Payout, %21.8328.5353.8335.4165.33-67.960.00

3.4 Compare and Contrast Each CompanyGeneral Motors CompanyGeneral Motors Company announced that it had completed fresh-start accounting, and would be filing its third quarter 2009 Form 10-Q and 2009 Form 10-K with the SEC today.We are building the foundation that will allow us to return to public ownership, said Chris Liddell, GM vice chairman and CFO. Completing fresh-start accounting is an important step in that process.The new company, which was formed on July 10, 2009 through the acquisition of substantially all the assets and certain liabilities of Motors Liquidation Company (formerly General Motors Corporation), had to complete the process of adopting fresh-start accounting to record the acquisition and establishment of the new GM as well as determine the fair value of assets and liabilities and implement new accounting policies.The following table provides a summary of GMs financial results for the period ended December 31, 2009 under fresh-start accounting.July 10-Dec. 31, 09

($ bils)Global revenue$57.5

Net income/(loss) attributed to stockholders$(4.3)

Net cash provided by operating activities$1.0

The $4.3 billion net loss includes the pre-tax impact of a $2.6 billion settlement loss related to the UAW retiree medical plan and a $1.3 billion foreign currency re-measurement loss.Going public will enable the company to invest in designing, building and selling the worlds best vehicles, attract the best people and access the capital markets. One of the most important measures in establishing the foundation for going public is the companys ability to return to sustainable profitability.As the results for 2009 show there is still significant work to be done. However, I continue to believe we have a chance of achieving profitability in 2010, said Liddell. We are also dedicated to delivering on our commitments to our stakeholders. For example we remain committed to repaying the outstanding balance of the U.S. Treasury and Export Development Canada loans by June 2010 at the latest.

FiatThe 2010 consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (the IFRS) issued by the International Accounting Standards Board (IASB) and adopted by the European Union, and with the provisions implementing article 9 of Legislative Decree no. 38/2005. The designation IFRS also includes all valid International Accounting Standards (IAS), as well as all interpretations of the International Financial Reporting Interpretations Committee (IFRIC), formerly the Standing Interpretations Committee (SIC).The financial statements are prepared under the historical cost convention, modified as required for the valuation of certain financial instruments, as well as on the going concern assumption. In this respect, despite operating in a continuingly difficult economic and financial environment, the Groups assessment is that no material uncertainties (as defined in paragraph 25 of IAS 1) exist about its ability to continue as a going concern, in view also of the measures already undertaken by the Group to adapt to the changed levels of demand and the Groups industrial and financial flexibility

Daimler AG Applied IFRSs. The accounting policies applied in theconsolidated financial statements comply with the IFRSs required to be applied as of December 31, 2011. Initialapplication of accounting policies in 2011 did not result in any material effects on the consolidated financial statements. Presentation. Presentation in the statement of financialposition differentiates between current and non-current assets and liabilities. Assets and liabilities are classified as currentif they mature within one year or within a longer operating cycle. Deferred tax assets and liabilities as well as assets andprovisions for pensions and similar obligations are generally presented as non-current items.The consolidated statement of income is presented usingthe cost-of-sales method.Commercial practices with respect to certain productsmanufactured by the Group necessitate that sales financing, including leasing alternatives, be made available to the Groups customers. Accordingly, the Groups consolidated financial statements are significantly influenced by theactivities of its financial services business.To enhance readers understanding of the Groups consolidated financial statements, unaudited information with respect tothe results of operations and financial position of the Groups industrial and financial services business activities is provided in addition to the audited consolidated financial statements. Such information, however, is not required by IFRSand is not intended to, and does not represent the separate IFRS results of operations and financial position of the Groups industrial or financial services business activities. Eliminations of the effects of transactions between theindustrial and financial services businesses have generally been allocated to the industrial business columns.To increase the transparency of the consolidated statementof cash flows, the Group separately discloses the cash flows from income taxes in the cash flow provided by/used for operating activities. Therefore the cash flow provided by/used for operating activities is derived from profit before income taxes instead of net profit. Prior-year presentation has been modified accordingly. Furthermore, prior-year amounts ofthe items Other non-cash expense and income and Other operating assets and liabilities have been adjusted foreffects related to income taxes from 434 million to 181 million and from 2,502 million to 1,990 million respectively.

ToyotaThe following is a description of the valuation methodologies of Toyota used for the assets and liabilities measured at fair value, key inputs and significant assumptions: Cash equivalentsCash equivalents represent highly liquid investments with original maturities of three months or less. Generally, quoted market prices are used to determine the fair value of these instruments. Marketable securities and other securities investmentsMarketable securities and other securities investments include debt securities and equity securities. Toyota uses quoted market prices for identical or similar assets or liabilities to measure fair value. Marketable securities and other securities investments classified as Level 3 include retained interests in securitized financial receivables, which are measured at fair value using the assumptions such as interest rate, loss severity and other factors. Derivative financial instrumentsToyota estimates the fair value of derivative financial instruments using industry-standard valuation models that requires observable inputs including interest rates and foreign exchange rates, and the contractual terms. In other certain cases when market data is not available, key inputs to the fair value measurement include quotes from counterparties, and other market data. Toyotas derivative fair value measurements consider assumptions about counterparty and our own non-performance risk, using such as credit default probabilities.

4.0 ConclusionPerformance of ToyotaConsolidated Performance (U.S. GAAP)Yen in millionsU.S. dollars*1in millions% change

20092010201120112011 vs. 2010

For the Year:

Net Revenues20,529,57018,950,97318,993,688$228,247+0.2

Operating Income (Loss)(461,011)147,516468,2795,632+217.4

Net Income (Loss) attributable toToyota Motor Corporation*2(436,937)209,456408,1834,909+94.9

ROE-4.0%2.1%3.9%--

At Year-End:

Total Assets29,062,03730,349,28729,818,166$358,607-1.7

Shareholders' Equity10,061,20710,359,72310,332,371124,262-0.3

YenU.S. dollars*1% change

20092010201120112011 vs. 2010

Per Share Data:

Net Income (Loss) attributable to Toyota Motor Corporation*2(139.13)66.79130.17$1.57+94.9

Annual Cash Dividends100.0045.0050.000.60+11.1

Shareholders' Equity3,208.413,303.493,295.0839.63-0.3

Stock Information (March 31):

Stock Price3,1203,7453,350$40.29-10.5

Market Capitalization (Yen in millions, U.S. dollars in millions)10,757,75212,912,75111,550,792$138,915-10.5

Consolidated vehicle sales in Japan and overseas increased by 71 thousand units, or 1.0%, to 7,308 thousand units for the fiscal year compared to the previous year. Vehicle sales in Japan decreased by 11.5%. However, with the efforts of dealers nationwide, market share including mini-vehicles was 43.7%, that remained at a high level. Meanwhile, overseas vehicle sales increased by 6.3%, because of the sales expansion in Asia and Other Regions. As for the results of operations, net revenues increased by 0.2%, to 18,993.6 billion for the fiscal year compared to the previous year, and operating income increased by 217.4%, to 468.2 billion. Income before income taxes and equity in earnings of affiliated companies increased by 93.3%, to 563.2 billion. Net income attributable to Toyota Motor Corporation increased by 94.9%, to 408.1 billion.

5.0 References http://en.wikipedia.org/wiki/General_Motors http://en.wikipedia.org/wiki/Fiat http://en.wikipedia.org/wiki/Daimler_AG http://en.wikipedia.org/wiki/Toyota http://en.wikipedia.org/wiki/Automotive_industry http://finance.yahoo.com http://www.rocketfinancial.com/Financials.aspx?fID=128945&p=1&pw=3481473&rID=5&stID=1 http://www.stock-analysis-on.net/NYSE/Company/Toyota-Motor-Corp/Common-Size/Income-Statement http://www.barchart.com/profile.php?sym=DDAIF&view=ratios http://www.barchart.com/profile.php?sym=FIATY&view=ratios http://www.barchart.com/profile.php?sym=GM&view=ratios http://www.barchart.com/profile.php?sym=TM&view=ratios https://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2010/Apr/0407_earnings.html http://annualreport2010.fiatspa.com/en/fiat-group-consolidated-statements/notes-consolidated-financial-statements/significant-accounting-po http://ar2011.daimler.com/consolidated_financial_statements/notes/1_significant_accounting_policies

6.0 Coursework1. List and briefly explain twelve accounting principles.Accountants have some basic rules and assumptions upon which rest all their work in preparing financial statements. These accounting rules and assumptions dictate what financial items to measure and when and how to measure them. By the end of this discussion, you will see how necessary these rules and assumptions are to accounting and financial reporting.So, here are the 12 very important accounting principles:1. accounting entity2. going concern3. measurement4. units of measure5. historical cost6. materiality7. estimates and judgments8. consistency9. conservatism10. periodicity11. substance over form12. accrual basis of presentation

These rules and assumptions define and qualify all that accountants do and all that financial reporting reports. We will deal with each in turn.1. Accounting Entity. The accounting entity is the business unit (regardless of the legal business form) for which the financial statements are being prepared. The accounting entity principle states that there is a "business entity" separates from its owners... a fictional "person" called a company for which the books are written.2. Going Concern. Unless there is evidence to the contrary, accountants assume that the life of the business entity is infinitely long. Obviously this assumption cannot be verified and is hardly ever true. But this assumption does greatly simplify the presentation of the financial position of the firm and aids in the preparation of financial statements.If during the review of a corporation's books, the accountant has reason to believe that the company may go bankrupt, he must issue a "qualified opinion" stating the potential of the company's demise. More on this concept later.3. Measurement. Accounting deals with things that can be quantifiedresources and obligations upon which there is an agreed-upon value. Accounting only deals with things that can be measured.This assumption leaves out many very valuable company assets. For example, loyal customers, while necessary for company success, still cannot be quantified and assigned a value and thus are not stated in the books.Financial statements contain only the quantifiable estimates of assets (what the business owns) and liabilities (what the business owes). The difference between the two equals owner's equity.4. Units of Measure. U.S. dollars are the units of value reported in the financial statements of U.S. companies. Results of any foreign subsidiaries are translated into dollars for consolidated reporting of results. As exchange rates vary, so do the values of any foreign currency denominated assets and liabilities.5. Historical Cost. What a company owns and what it owes are recorded at their original (historical) cost with no adjustment for inflation.A company can own a building valued at $50 million yet carry it on the books at its $5 million original purchase price (less accumulated depreciation), a gross understatement of value.This assumption can greatly understate the value of some assets purchased in the past and depreciated to a very low amount on the books. Why, you ask, do accountants demand that we obviously understate assets? Basically, it is the easiest thing to do. You do not have to appraise and reappraise all the time.6. Materiality. Materiality refers to the relative importance of different financial information. Accountants don't sweat the small stuff. But all transactions must be reported if they would materially affect the financial condition of the company.Remember, what is material for a corner drug store is not material for IBM (lost in the rounding errors). Materiality is a straightforward judgment call.7. Estimates and Judgments. Complexity and uncertainty make any measurement less than exact. Estimates and judgments must often be made for financial reporting. It is okay to guess if (1) that is the best you can do and (2) the expected error would not matter much anyway. But accountants should use the same guessing method for each period. Be consistent in your guesses and do the best you can.8.Consistency. Sometimes identical transactions can be accounted for differently. You could do it this way or that way, depending upon some preference. The principle of consistency states that each individual enterprise must choose a single method of reporting and use it consistently over time. You cannot switch back and forth. Measurement techniques must be consistent from any one fiscal period to another.9. Conservatism. Accountants have a downward measurement bias, preferring understatement to overvaluation. For example, losses are recorded when you feel that they have a great probability of occurring, not later, when they actually do occur. Conversely, the recording of a gain is postponed until it actually occurs, not when it is only anticipated.10. Periodicity. Accountants assume that the life of a corporation can be divided into periods of time for which profits and losses can be reported, usually a month, quarter or year.What is so special about a month, quarter or year? They are just convenient periods; short enough so that management can remember what has happened, long enough to have meaning and not just be random fluctuations. These periods are called "fiscal" periods. For example, a "fiscal year" could extend from October 1 in one year till September 30 in the next year. Or a company's fiscal year could be the same as the calendar year starting on January 1 and ending on December 31.

"Lines" are perhaps not as important as principles, but they can be confusing if you don't know how accountants use them in financial statements. Financial statements often have two types of lines to indicate types of numeric computations.Single lines on a financial statement indicate that a calculation (addition or subtraction) has been made on the numbers just preceding in the column.The double underline is saved for the last. That is, use of a double underline signifies the very last amount in the statement.Note that while all the numbers in the statement represent currency, only the top line and the bottom line normally show a dollar sign.aSALES [$]

bCOST OF GOODS SOLD

a-b=cGROSS MARGIN

dSALES & MARKETING

eR&D

fG&A

d+e+f=gTOTAL EXPENSES

hINTEREST INCOME

iINCOME TAXES

c-g+h-i=jNET INCOME [$]

FASB1 makes the rules and they are called GAAP.2Financial Accounting Standard Board ;2Generally Accepted Principles11. Substance over Form. Accountants report the economic "substance" of a transaction rather than just its form. For example, an equipment lease that is really a purchase dressed in a costume is booked as a purchase and not as a lease on financial statements. This substance over form rule states that if it's a duck... then you must report it as a duck.12. Accrual Basis of Presentation. This concept is very important to understand/ Accountants translate into dollars of profit or loss all the money-making (or losing) activities that take place during a fiscal period. In accrual accounting, if a business action in a period makes money, then all its product costs and its business expenses should be reported in that period. Otherwise, profits and losses could flop around depending on which period entries were made.In accrual accounting, this documentation is accomplished by matching for presentation: (1) the revenue received in selling product and (2) the costs to make that specific product sold. Fiscal period expenses such as selling, legal, administrative and so forth are then subtracted.Key to accrual accounting is determining: (1) when you may report a sale on the financial statements, (2) matching and then reporting the appropriate costs of products sold and (3) using a systematic and rational method allocating all the other costs of being in business for the period. We will deal with each point separately:Revenue recognition. In accrual accounting, a sale is recorded when all the necessary activities to provide the good or service have been completed regardless of when cash changes hands. A customer just ordering a product has not yet generated any revenue. Revenue is recorded when the product is shipped.Matching principle. In accrual accounting, the costs associated with making products (Cost of Goods Sold) are recorded at the same time the matching revenue is recorded.Allocation. Many costs are not specifically associated with a product. These costs must be allocated to fiscal periods in a reasonable fashion. For example, each month can be charged with one-twelfth of the general business insurance policy even though the policy, was paid in full at the beginning of the year. Other expenses are recorded when they arise (period expenses).Note that all businesses with inventory must use the accrual basis of accounting. Other businesses may use a "cash basis" if they desire. Cash basis financial statements are just like the Cash Flow Statement or a simple check book. We'll describe features of accrual accounting in the chapters that follow.

Who makes all these rules? The simple answer is that "FASB" makes the rules and they are called "GAAP." Note also that FASB is made up of "CPAs." Got that?Financial statements in the United States must be prepared according to the accounting profession's set of rules and guiding principles called the Generally Accepted Accounting Principles, GAAP for short. Other countries use different rules.GAAP is a series of conventions, rules and procedures for preparing and reporting financial statements. The Financial Accounting Standards Board, FASB for short, lays out the GAAP conventions, rules and procedures.The FASB's mission is "to establish and improve standards of financial accounting and reporting for guidance and education of the public, including issuers, auditors, and users of financial information." The Securities and Exchange Commission (SEC) designates FASB as the organization responsible for setting accounting standards for all U.S. public companies.CPAs CPAs are, of course, Certified Public Accountants. These very exalted individuals are specially trained in college, and have practiced auditing companies for a number of years. In addition, they have passed a series of exams testing their clear understanding of both accounting principles and auditing procedures. Note that FASB is made up mostly of CPAs and that CPAs both develop, interpret and apply GAAP when they audit a company. All this is fairly incestuous.Page 35 of 35

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