Inancial staement analysis research paper ( Toyota Motor Company )

The company is Toyota.
Last three years annual reports 2007-08-09

Financial Statement Analysis Research Paper

You will be assigned a publicly traded, global corporation for your team to analyze. Referring to the annual report and supplemented by your research, respond to the instructions and questions below. Fully explain your answers by detailed explanation or calculations where necessary and appropriate. All questions and instructions refer to the most recent year reported, unless otherwise stated.

1. Provide an overview of the company, the type of business it engages in, and any significant recent events affecting the companyas operations or financial position.
2. Does the company produce a Corporate Social Responsibility (CSR) Report? Contrast this report to the 10K.
3. Discuss the auditoras report, the role of the auditors, and the significance of the report to the corporation and to the external users of the financial statements.
4. How many shares of common stock did the company have outstanding?
5. Does the company have any preferred stock outstanding?
6. What is the companyas total paid-in capital?
7. What was the total dollar amount of dividends declared in the most recent year reported?
Evaluate and comment on the following:
a. Liquidity a ability to meet short-term obligations as they come due;
b. Solvency a asset management, debt management and interest coverage;
c. Profitability a this should include return on assets and equity, and earnings per share;
d. Cash position a this should include a discussion of the Statement of Cash Flows, whether it is in the direct or indirect format, and the primary sources and uses of cash for the period.
8. How does the companyas performance compare to similar companies and/or industry standards?
9. Does this company observe socially responsible operating policies? Give examples.
10. Describe unique opportunities available to this company or industry. Has the company capitalized on these opportunities?
11. What current or potential threats exist for this company or industry?
12. Based on all your analysis, what strengths and weaknesses, if any, do you see in the financial status, operating performance, or cash position of the company, and what steps would you recommend for improvement?

You will be graded on the professional presentation as well as the completeness of your paper. This includes proper internal source citation and bibliography format using the APA format. Respond to the directions as fully and completely as you can. Some questions or instructions will require more explanation than others will. Comparison to industry ratios and averages requires that you actually state the specific industry data to which you are referring.

Support your discussion, opinions, and conclusions fully. Remember that evaluation requires some comment and analysis, not just a computation of the ratios. At a minimum, you are expected to use the ratios presented in your text. Be sure to show all computations. You should also use the same formulas for the ratios used by the author of the text, unless you explain why you are using a different version of the ratio.

Valid analysis requires comparison to industry averages. This research of the industry as a basis for evaluating the ratios that you calculate is a major component of this assignment. You are expected to include that industry data as a major part of your paper. Also, comparison to industry average ratios requires that you actually present (and properly cite) the specific industry data you are referring to. Several sources are listed below and in your text for that industry research. You must use one or more of these sources for your industry ratio data.

There are many financial market websites where one can find financial data for various companies (e.g., Many of those include some industry ratios. However, industry data from these sources is not acceptable. For this data, you must refer to the references on industry information located in the library. Some of these are Value Line Investment Surveys, Standard and Pooras Industry Survey, Morningstar Investment Research Center(Stock Analysis Report is a great starting place), Robert Morris Associates, Moodyas or the Wall Street Journal. You are expected to do library research to find the industry ratios. The City University of Seattle library also has appropriate sources on their on-line library.

One of the objectives of this assignment is to give you some exposure to actual financial statements, such as those that you might encounter in a business setting. In many cases, actual financial statements may contain terminology or non-typical items that are not covered in the textbook. You are encouraged to research other sources and do some additional reading to learn about any unusual items you may see.






Grading Citeria:


Financial Statement Analysis Research Paper:
Assessment Rubric:
Graduate Percentage Scale: 0.00 68.74% 68.75 81.24% 81.25 93.74% 93.75 100%
Graduate Scaled Score: 0.0 1.5 1.6 2.5 2.6 3.5 3.6 4.0
% of Grade Below Standard Approaching Standard At Standard Exceeds Standard
Accuracy of calculations to support analysis
25 a? Meager demonstration of understanding of concepts is demonstrated
a? Work is incomplete, sloppy and/or illogical
a? Calculations have errors
a? Work does not appear to be students original work a? Little evidence of application of theory and principles
a? Calculations are difficult to review
a? Some calculations are correct
a? Selection of materials included in calculations lacks sufficient depth a? Selection of calculated materials displays application of sound accounting principles and theory
a? Overall, calculations are error free and support analysis
a? Presentation of materials is relatively easy to follow, includes some charts and graphs a? Problem solving theory is outstanding and supports selection of ratios
a? Calculations exhibit a logical approach and are easy to review
a? Calculations are relevant and clearly support analysis.
a? Exceptional presentation of materials that are visually pleasing, easy to follow, and includes charts and graphs
Validity and completeness of analysis 35 a? Analysis is not based on sound theory.
a? Misses major assumptions or does not evaluate them.
a? Lacks clear point of view and logical sequence of information. a? Analysis is brief and addresses the major assumptions.
a? Vague point of view and
a? Limited logical sequence of information.
a? Analysis demonstrates understanding of major ideas and assumptions.
a? Clear point of view and logical sequence of information. a? Thorough analysis that clearly demonstrates careful and insightful understanding of major ideas and assumptions.
a? Clear and concise point of view and logical sequence of information.
Grammar, spelling and syntax; APA formatting 25 a? Insufficient or no relevant resources
a? APA format not followed
a? Title page lacking a? Few resources used
a? APA format compliance is inconsistent
a? Resources are sufficient in number and documented
a? APA format is generally followed a? Resources are relevant, sufficient in number, and support varying viewpoints
a? APA format is observed
a? The presentation of the paper enhances the readers ability to understand the topic
Presentation 15 a? Poor organization
a? Information not clear
a? Minimal clarity and organization in presentation a? Organized presentations
a? Little creative effort made a? Exceptional effort at communication, organization and quality of presentation