Toyota Motor Corporation.Analyze the company's financial strength:a. Assess the financial strength of the company.b. How is the financial strength likely to change in the next year or so?c. What are...

Company’s Financial Strength
Assess the company financial strength
Creating incomes of ¥25.6919 trillion, which is an expansion of ¥3,627.7 billion, or 16.4%, contrasted and the earlier monetary year, Toyota has gigantic monetary assets. As it is shown in Figure beneath, in the midst of escalating rivalry and expanding worldwide financial uncertainly, the networking pay of Toyota has been reliably expanding throughout the previous five years. The ebb and flow strong monetary situation of the organization adds to its upper hand by means of allowing freedoms to take part in innovative work positively.
Toyota Production System (TPS) is a broadly perceived framework for its proficiency in disposal of waste, abnormalities, and overburdening from the creation cycle. In light of two crucial ideas of jidoka (robotization with a human touch) and Just-in-Time guideline, this framework has empowered Toyota to embrace a proactive methodology in managing fabricating issues, simultaneously saving critical assembling costs. Moreover, Toyota has presented and idealized assembling ideas of Kaizen (ceaseless improvement) and Genchi Genbutsu (on location, active experience) to acquire upper hand on the proficiency of assembling.
An audit of the obligation to-value proportion and remaining obligation uncovered that Toyota debt burden (current year) estimated by percentage coverage. The higher the better. If the interest expense and interest income are both empty and the net interest income is negative, the net interest income is used as the interest expense. The interest coverage ratio is a ratio that determines how easy it is for a company to repay interest on outstanding debts. Calculated by dividing the company’s operating profit (EBIT) by the interest expense: Toyota Motors’ interest expense as of December 2020 was US$-95,000, and its operating profit as of December 2020 was US$9,518,000. Expenses are equity and long-term lease debt for the quarter ending December 2020.In 2020, it will be 115.068 billion U.S. dollars. Toyota Motor's interest coverage ratio for the quarter ended December 2020 was 100.21. The higher the quota, the better the financial stability of the company. 2.94 for the quarter ending December 2020. (Liu, J. H., & Meng, Z.) (2017)
Financial Condition Company Industry
Debt/Equity Ratio109.96%    187.95%
Current Ratio    1.05    1.23
Quick Ratio    0.92    1.02
Interest Coverage     100.21
Book Value/Share    143.62    52.76
Investment Returns % Company Industry
Return On Equity7.25%    8.45%
Return On Assets3.72%    3.46%
Return On Capital        4.46%    4.4%
When compared to the industry Toyota return on assets is higher (3.72%). This shows that Toyota’s assets are profitable in generating revenue. The company also has a lower return on equity (7.25%) than the industry average of (8.45%). Though this ratio indicates that the company is not as efficient in generating profits from shareholder equity, the company is still appealing to...