Profitability Ratio Analysis of Toyota

Profitability Ratio Analysis of Toyota - Profitability...

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Profitability Ratio Analysis of Toyota, Ford, and GM. Operating Profit Margin The Operating Profit Margin Ratio Operating margin is a measurement of what  proportion of a company's revenue is left over after paying for variable costs of production such  as wages, raw materials, etc. A healthy operating margin is required for a company to be able to  pay for its fixed costs, such as interest on debt.  The operating margin provides information on  how much the company makes before interest and taxes of each dollar of sales.  This ratio is  best assessed when analyzing a company’s performance over several periods and or the  competitors. Generally, the higher the margin the better indication of financial health.  Toyota is  in better financial health based on their ability to turn a profit. Return on Assets
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This note was uploaded on 06/27/2008 for the course HR 501 taught by Professor Bob during the Spring '08 term at Adams State University.

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Profitability Ratio Analysis of Toyota - Profitability...

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