Toyota Motor Corp/ (TM) — return on equity, margins and leverage

The business behind the dividend

Measure	TM	Median	Formula
Return on equity	7.9%	10.6%	Net income ÷ shareholders’ equity
Return on capital employed	6.8%	10.0%	Operating income ÷ (equity + total debt)
Owner earnings	$990.00m	$120.90m	Net income + depreciation & amortisation − capital expenditure
Free cash flow	$5.07bn	$155.08m	Operating cash flow − capital expenditure
Operating margin	6.0%	14.3%	Operating income ÷ revenue
Net margin	4.4%	10.1%	Net income ÷ revenue
Debt to equity	0.60x	0.73x	Total debt ÷ shareholders’ equity
Interest cover	57.56x	4.22x	Operating income ÷ interest expense
Current ratio	1.07x	1.55x	Current assets ÷ current liabilities
Long-term debt to working capital	8.41x	1.88x	Long-term debt ÷ (current assets − current liabilities)
Cash conversion	2.55x	1.66x	Operating cash flow ÷ net income
Accruals	-4.2%	-3.1%	(Net income − operating cash flow) ÷ total assets

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure	2013	2012	2011	2010	Median
Return on equity	7.9%	2.7%	4.0%	2.0%	4.0%
Return on capital employed	6.8%	2.1%	2.8%	0.8%	2.8%
Operating margin	6.0%	1.9%	2.5%	0.8%	2.5%
Net margin	4.4%	1.5%	2.1%	1.1%	2.1%
Debt to equity	0.60x	0.57x	0.62x	0.68x	0.62x
Current ratio	1.07x	1.05x	1.10x	1.22x	1.10x
Cash conversion	2.55x	5.12x	4.96x	12.22x	5.12x

How it compares in industrials

Among the 289 industrials companies here measured on free cash flow, Toyota Motor Corp/ pays out less than 78 of them. The median for that group is 24.4%, against this company’s 39.8%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 348 in industrials →