ABSTRACT
This chapter examines Toyota’s financial management system. It analyzes the financial data of Toyota Motor Corporation, known for its debt-free management and for its top ranking as a company that stays “in the black.” The chapter looks at how Toyota has procured and managed its capital assets to support its automobile production and sales organizations. The declines in BY76 and BY77 were caused by Toyota’s curtailment of new plant investment in order to recover capital during the production slowdown that came in the wake of the first oil crisis. Toyota has responded to short-term depressions affecting its main business activities by strengthening the support provided by its financial activities. The total amount of Toyota’s cash and deposits took a major jump in BY84. Japan-based Nippondenso, an auto parts manufacturing and sales company, is a nonsubsidiary affiliate in which Toyota Motor nevertheless owns a large equity share.
