Colleen Israel

The Automotive Industry

Highly Competitive

Cutting Edge Technology

Constant Change & Innovation

Reputation is Everything

Industry Leaders

Toyota

GM

Ford

Honda

Nissan

Toyota: The Innovators

Developed a strong company culture

“The Toyota Way”

A Methodology copied by many.

Possess Innovative Patents that

provide advantages over competitors

“The Toyota Way”

Respect

Teamwork

Challenge

Kaizen: Concept of continuous

improvement

Genchi Genbutsu: Go and See, for

managers

The Toyota Way &

Consumers Years of satisfaction

Consumer Loyalty based on:

Trust

Safety

Quality

Reliability

Innovation

Design

Toyota 2009

A tragic event: a family dies in their 2009

Lexus ES350.

Accelerator issues are uncovered.

Company deflects blame.

Company concealments become

evident.

Eventual admission of fault.

Customer & investors trust is shaken.

2009 Aftermath

Financials all plummet in 2009.

All aspects suffer

Competitors take advantage of downfall

Company struggles to recover

Toyota works to regain trust

Ratio RankingsColleen Israel

Toyota GM Ford Honda Nissan

Profitability Ratios:

RANKINGS Best =1

worst = 5

Compared to one anotherReturn on Investment

Return on Assets (ROA) 5 2 1 4 3

Return on Equity (ROE) 5 2 1 4 3

EBITDA 4 5 1 3 2

Earnings Before Interest

and Taxes Depreciation

and Amortation

Liquidity Ratios

Quick Ratio 4 3 5 2 1

Current Ratio 4 3 5 2 1

Debt Management

Total Debt to Equity 3 5 1 4 2

Asset Management

Total Asset Turnover 5 1 3 4 2

Inventory Turnover 4 3 5 1 2

total score 34 24 22 24 16

lower = better

Ranking: Best Investment

16

22

24

24

34

Nissan

Ford

Honda

GM

Toyota

Toyota’s Future

Aggressive Innovation

Rebuild trust

Better negotiation with consumer

Return to putting customer 1st

Revisit original mission of continuous

improvement.

Investors: moderate investment for

moderate improvements.

Thank You