Toyota Motor Corporation
Table of Contents
Accounting Practices (GAAP and IFRS). 4
Toyota Motor Corporation
Exchange Rates
Toyota Motor Corporation, as an international firm, has involved in the capital markets. The involvement of the Company in the capital markets has been characterized by both the positive and negative impacts on the general performance of the business. During the crises, the Toyota Motor Company applies this strategy of venturing into the capital markets to protect it from experiences the market losses (Maqsood et al., 2020). The Company operates with the currency denomination of the country it operates in. Sometimes the transactions may need to exchange the funds from one denomination to the other. Under these circumstances, the Toyota Motor Company observes all the exchange rate rules to avoid conflicts with the foreign capital markets (Xiang, 2019). Most of the sales are made using the Euro and the dollars. The normal exchange rates of the currency which are internationally applied are used effectively.
Sources of Funds
Toyota Motor Company is a multinational corporation and, therefore, it has a wide pool of getting the capital. The Company started a long time ago, and it has taken large markets all over the world. In this case, the Company has its main source of income as the revenues from automotive sales. The automotive sales profits are said to contribute 90% of the total funding of the Toyota Motor Company (Gürel, & Tat, 2017). This includes, selling the cars, Lorries, and any other related products all over the world. The other source of fund of the Company is the shareholders contribution. Sometimes, the shareholders are called upon to contribute towards a certain project that would help in the expansion of the business. The Company also sometimes goes ahead to obtain the loans from the financial institutions especially when they want to finance a big project that needs extra cash. Through the funding, ensures that its operations are steady and they maintain their positive image in the market. Other financial sources may include public raising, government incentives, and the customers’ donations as a way of thanking the Company for good services.
Stock Performance
Just like the other companies, the Toyota Motor Corporation is involved in the international stock market (Ervural et al., 2018). The Company is considered to have one of the world’s best stock values, and it has good deals with its clients. The graph of the stock performance of the Toyota Motor Corporation is always high since it started its operations in the stock market. The Company has also diversified its stock markets to make it simple for the buyers to access it. The Company also gives its shareholders the dividends depending on the amount of the stock they have invested in. That has been one of the major sources of income for the Company.
Accounting Practices (GAAP and IFRS)
Toyota Motor Company has a strong accounting department that ensures that all the transactions are recorded as per the Company’s needs. The Company employs qualified accountants depending on the accounting principles as they are used in the country of operation (Bull et al., 2016). The Company applies the IFRS and also GAAP to analyze its accounting dimensions. Generally accepted accounting principles method is commonly used in the United States of America. In this case, Toyota Motor Corporation uses the principles to record all the sales and incomes carried out in the United States of America and the other countries. International financial recording standards are used in more than 110 countries all over the world. For that matter, the Toyota Motor Company applies IFRS in other countries apart from the United States of America. The application of the two methods helps in reducing the confusion of operations as long as accounting is concerned.
Financial Performance
Toyota Motor Company has a good recording of financial performance. The Company records its sales and profits annually and analyzes all the aspects of the business (Simão & Lisboa, 2017). From their 2019 financial year, the Company has recorded more than 5 trillion sales and hence making it one of the Best Companies in the world. The profit margin is also always positive, and it can be predicted that by the end of the financial year of 2020, the Company will record more than it had previously recorded.
References
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Ervural, B. C., Zaim, S., Demirel, O. F., Aydin, Z., & Delen, D. (2018). An ANP and fuzzy TOPSIS-based SWOT analysis for Turkey’s energy planning. Renewable and Sustainable Energy Reviews, 82, 1538-1550.
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International Social Research, 10(51).
Maqsood, H., Mehmood, I., Maqsood, M., Yasir, M., Afzal, S., Aadil, F., … & Muhammad, K. (2020). A local and global event sentiment-based efficient stock exchange forecasting using deep learning. International Journal of Information Management, 50, 432-451.
Simão, L., & Lisboa, A. (2017). Green marketing and green brand–The Toyota Case. Procedia Manufacturing, 12, 183-194.
Xiang, C. (2019, December). 4Ps Empirical Analysis of the Export of TRANSSION to Africa. In 2nd International Symposium on Social Science and Management Innovation (SSMI 2019). Atlantis Press.