Page 2 of 35

1.0 Content

NO TOPIC PAGES
1.0 CONTENTS 2
2.0 INTRODUCTION 3-13
3.0 BODY 13-27
4.0 CONCLUSION 27-28
5.0 REFERENCES 28-29
6.0 COURSEWORK 29-35







Page 3 of 35

2.0 Introduction
Background of General Motors Company

General Motors Company, commonly known as GM, is an American multinational holding
corporation headquartered in Detroit, Michigan that, through its subsidiaries, designs, manufactures, markets
and distributes vehicles and vehicle parts and sells financial services. General Motors produces vehicles in 37
countries under eleven brands, including Chevrolet, Buick, GMC, Cadillac, Baojun, Holden, Isuzu, Jie
Fang, Opel, Vauxhall, and Wuling. General Motors employs 202,000 people and does business in 157
countries. General Motors is divided into five business segments: GM North America (GMNA), GM
Europe (GME), GM International Operations (GMIO), GM South America (GMSA), and GM Financial.
General Motors led global vehicle sales for 77 consecutive years from 1931 through 2007, longer than any
other automaker, and is currently among the world's largest automakers by vehicle unit sales
.
General Motors acts in most countries outside the USA via wholly owned subsidiaries, but operates
in China through 10 joint ventures. GM's OnStar subsidiary provides vehicle safety, security and informations
services.
In 2009, General Motors shed several brands, closing Saturn and Pontiac, and emerged from a government
backed. In 2010, GM made an initial public offering that was one of the world's top 5 largest IPOs to date and
returned to profitability later that year.
Page 4 of 35

In 2012, a trust representing unsecured creditors of "old" GM filed a lawsuit against GM over payments
made to hedge funds in 2009 in exchange for waiving of claims against GM's Canadian subsidiary. The deal, of
which presiding judge Robert Gerber says he was unaware - despite its disclosure in an SEC filing on the day
GM sought Chapter 11 protection - could prompt a reopening of the 2009 case.


*The longest-lived continuous automobile nameplate still in production in the world is the Chevrolet Suburban










Page 5 of 35

Brand reorganization
Brand
Year
founded
Year began making
autos
Year joined
GM
Markets served today
GMC 1901 1901 1909 North America, Middle East
Chevrolet 1911 1911 1911
Global, except Australia, New
Zealand
Cadillac 1902 1902 1909
North America, Europe, Asia,
Middle East
Buick 1899 1903 1908 North America, China, Israel
Vauxhall 1857 1903 1925 United Kingdom
Opel 1862 1899 1929
Africa, Asia, Europe, South
America
Wuling 2002 2002 2002 China
Jiefang 2011 2011 2011 China
Baojun 2010 2010 2010 China
Holden 1856 1908 1931 Australia, New Zealand


Page 6 of 35

Background of Fiat

Fiat S.p.A. is an Italian automobile manufacturer based in Turin (Fabbrica Italiana Automobili Torino). Fiat
was founded in 1899 by a group of investors, including Giovanni Agnelli. During its more than century-long
history, Fiat has also manufactured railway engines and carriages, military vehicles, farm tractors, and aircraft.
In 2011, Fiat was the fourth largest European automaker by production behind Volkswagen Group, PSA, and
Renault and the eleventh largest automaker by production in the world.
Fiat has acquired numerous other companies; e.g., it acquired Lancia in 1968, became a shareholder
of Ferrari in 1969, took control of Alfa Romeofrom the Italian government in 1986, purchased Maserati in 1993,
and became the majority shareholder of Chrysler in 2011.
Fiat-based cars are built around the world. Outside Italy, the largest country of production is Brazil, where
the Fiat brand is the market leader. The group also has factories in Argentina and Poland and a long history of
licensing production of its products in other countries. It also has numerous alliances and joint ventures around
the world, the main ones being located in Italy, Serbia, France, Turkey, India and China.
Agnelli's grandson Gianni Agnelli was Fiat's chairman from 1966 until 1996; he then served as honorary
chairman from 1996 until his death on 24 January 2003, during which time Cesare Romiti served as chairman.
Until their removal, Paolo Fresco served as chairman and Paolo Cantarella as CEO. Umberto Agnelli then took
Page 7 of 35

over as chairman from 2003 to 2004. After Umberto Agnelli's death on 28 May 2004, Luca Cordero di
Montezemolowas named chairman, with Agnelli heir John Elkann becoming vice chairman (at the age of 28),
and other family members also serving on the board. At this point, CEO Giuseppe Morchio resigned, and Sergio
Marchionne was named to replace him on 1 June 2004.
In September 2010, shareholders approved a plan to split Fiat's capital goods businesses from the group.
Agricultural and construction equipment manufacturer CNH Global NV, truck maker Iveco, and the industrial
and marine division of Fiat Powertrain Technologies were spun off into a new group on 1 January 2011. The
parent company, Fiat Industrial S.p.A., was listed on the Milan stock exchange on 3 January 2011.
In 2010, credit rating agency Fitch cut Fiat's debt rating to BB- after it had accumulated a debt of around 9.3
billion. In 2013, Fiats debt rating was cut again, this time by Moody's, to Ba3 over concerns European demand
was lower and debt was falling slower than expected. The Financial Times estimate of Fiats debt at the time was
almost 28 billion.

Enterprise Outside Italy
Fiat Automveis (Brazil), Fiat Argentina, Fiat Automobili Srbija, Polski Fiat/FSO (Poland), AutoVAZ Lada
(Russia), Sollers, Bulgaria, Tofa (Turkey), SEAT (Spain), Ethiopia, Egypt, India, Pakistan, Sri Lanka, North
Korea, China.





Page 8 of 35

Background of Daimler AG

Daimler AG (help info) (German pronunciation: [daml ae]; formerly DaimlerChrysler) is
a German multinational automotive corporation. Daimler AG is headquartered in Stuttgart, Baden-Wrttemberg,
Germany. By unit sales, it is the thirteenth-largest car manufacturer and second-largest truck manufacturer in the
world. In addition to automobiles, Daimler manufactures buses and provides financial services through
its Daimler Financial Services arm.
As of 2013, Daimler owns or has shares in a number of car, bus and truck marques
including Mercedes-Benz, Mercedes-AMG, Smart, Freightliner,Western Star, Thomas Built
Buses, Setra, BharatBenz, Mitsubishi Fuso, as well as shares in Denza, KAMAZ, Renault-Nissan Alliance. At
the end of 2012, the company closed the Maybach marque.

History
Daimler AG is a German manufacturer of automobiles, motor vehicles, and engines, which dates back more
than a century.
An Agreement of Mutual Interest was signed on 1 May 1924 between Benz & Cie (founded 1883) of Karl
Benz and Daimler Motoren Gesellschaft(founded 1890) of Gottlieb Daimler and Wilhelm Maybach.
Both companies continued to manufacture their separate automobile and internal combustion engine brands until,
on 28 June 1926, when Benz & Cie. and Daimler Motoren Gesellschaft AG formally
mergedbecoming Daimler-Benz AGand agreed that thereafter, all of the factories would use the brand name
of Mercedes-Benz on their automobiles.
Page 9 of 35

In 1998, Daimler-Benz and Chrysler Corporation announced the world's largest cross-border deal ever, valued
at US$38billion, and the resulting change in company name to DaimlerChrysler AG.
In 2007, when the Chrysler group was sold off to Cerberus Capital Management (see below), the name
[note 1]
of
the parent company was changed to simply "Daimler AG".

Timeline of Daimler AG
Benz & Company, 18831926
Daimler Motoren Gesellschaft AG, 18901926
Daimler-Benz AG, 19261998
DaimlerChrysler AG, 19982007
Daimler AG, 2007present

Formulae one
On November 16, 2009 Daimler purchased a 75.1% stake in Brawn GP. The company was rebranded
as Mercedes GP. Ross Brawn will remain team principal and the team will be based in Brackley, UK. However
the purchase of Brawn meant that Daimler back its stake in McLaren in stages that ended in 2011. Mercedes
will continue to provide sponsorship and engines to McLaren until 2015. Mercedes owns 45.1% of the new
company with 30% for Aabar Investments and 24.9% for Ross Brawn. The racing team has signed the former
champion Lewis Hamilton as a replacement to Michael Schumacher who retired at the end of 2012.



Page 10 of 35

Background of Toyota Motor Corporation

Toyota Motor Corporation is a Japanese multinational automaker headquartered in Toyota, Aichi, Japan.
In 2010, Toyota employed 325,905 people worldwide, and was the third-largest automobile manufacturer in
2011 by production behind General Motors and Volkswagen Group. Toyota is the eleventh-largest company in
the world by revenue. In July 2012, the company reported it had manufactured its 200-millionth vehicle.
The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota
Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it
created its first product, the Type A engine, and, in 1936, its first passenger car, theToyota AA. Toyota Motor
Corporation group companies are Toyota (including the Scion brand), Lexus, Daihatsu, and Hino Motors, along
with several "nonautomotive" companies. TMC is part of the Toyota Group, one of the largest conglomerates in
the world.

History
Toyota was started in 1933 as a division of Toyoda Automatic Loom Works devoted to the production of
automobiles under the direction of the founder's son, Kiichiro Toyoda. Its first vehicles were the A1 passenger
car and the G1 in 1935. The Toyota Motor Co. was established as an independent company in 1937. In 2008,
Toyota's sales surpassed General Motors, making Toyota number one in the world.

In 1924, Sakichi Toyoda invented the Toyoda Model G Automatic Loom. The principle of Jidoka, which
means the machine stops itself when a problem occurs, became later a part of the Toyota Production System.
Looms were built on a small production line. In 1929, the patent for the automatic loom was sold to a British
company, generating the starting capital for the automobile development.
Page 11 of 35


*Toyoda Standard Sedan AA 1936

In September 1936, the company ran a public competition to design a new logo. Of 27,000 entries, the
winning entry was the three Japanese katakana letters for "Toyoda" in a circle. But Risabur Toyoda, who had
married into the family and was not born with that name, preferred "Toyota" because it took eight brush strokes (a
lucky number) to write in Japanese, was visually simpler (leaving off the diacritic at the end) and with a voiceless
consonant instead of a voiced one (voiced consonants are considered to have a "murky" or "muddy" sound
compared to voiceless consonants, which are "clear").
Since "Toyoda" literally means "fertile rice paddies", changing the name also prevented the company from
being associated with old-fashioned farming. The newly formed word was trademarked and the company was
registered in August 1937 as the "Toyota Motor Company".


*Toyota at the Rally Dakar, 1992

Page 12 of 35

By the early 1960s, the US had begun placing stiff import tariffs on certain vehicles. The chicken tax of 1964
placed a 25% tax on imported light trucks. In response to the tariff, Toyota, Nissan Motor Co. and Honda Motor
Co. began building plants in the US by the early 1980s.

*With over 30 million sold, the Corolla is one of the most popular and best selling cars in the world.

Toyota received its first Japanese Quality Control Award at the start of the 1980s and began participating in
a wide variety of motorsports. Due to the1973 oil crisis, consumers in the lucrative US market began turning to
small cars with better fuel economy. American car manufacturers had considered small economy cars to be an
"entry level" product, and their small vehicles employed a low level of quality to keep the price low.
With a major presence in Europe, due to the success of Toyota Team Europe, the corporation decided to set
up Toyota Motor Europe Marketing and Engineering, TMME, to help market vehicles in the continent. Two
years later, Toyota set up a base in the United Kingdom, TMUK, as the company's cars had become very popular
among British drivers. Bases in Indiana, Virginia, and Tianjin were also set up. In 1999, the company decided to
list itself on the New York and London Stock Exchanges.
In 2011, Toyota, along with large parts of the Japanese automotive industry, suffered from a series of natural
disasters. The 2011 Thoku earthquake and tsunami led to a severe disruption of the supplier base and a drop in
production and exports.
[38][39]
Severe flooding during the 2011 monsoonseason in Thailand affected Japanese
automakers that had chosen Thailand as a production base. Toyota estimated to have lost production of 150,000
units to the tsunami and production of 240,000 units to the floods.
Page 13 of 35

In October 2012, Toyota announced a recall of 7.43 million vehicles worldwide to fix malfunctioning power
window switches, the largest recall since that of Ford Motor Company in 1996. The move came after a series of
recalls between 2009 and 2011 in which it pulled back around 10 million recalls amidst claims of faulty
mechanics.


3.0 Body
3.1 Balance Sheet For Each Company

Balance Sheet of General Motors Company (Quarterly)
Period Ending Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012
Assets
Current Assets

Cash And Cash Equivalents 20,764,000 21,356,000 19,108,000 24,183,000

Short Term Investments 6,258,000 6,560,000 8,988,000 10,411,000

Net Receivables 31,755,000 26,181,000 23,868,000 16,759,000

Inventory 14,777,000 15,200,000 14,714,000 15,672,000

Other Current Assets 4,191,000 3,273,000 3,318,000 5,082,000
Total Current Assets 77,745,000 72,570,000 69,996,000 72,107,000
Long Term Investments 18,916,000 14,639,000 13,837,000 14,374,000
Property Plant and Equipment 27,926,000 26,932,000 25,845,000 28,099,000
Goodwill 1,993,000 1,968,000 1,973,000 28,408,000
Intangible Assets 6,598,000 6,997,000 6,809,000 8,904,000
Accumulated Amortization - - - -
Other Assets 3,324,000 3,000,000 3,040,000 3,564,000
Deferred Long Term Asset Charges 26,608,000 27,669,000 27,922,000 -
Total Assets 163,110,000 153,775,000 149,422,000 155,456,000
Liabilities
Current Liabilities

Accounts Payable 50,060,000 49,567,000 48,474,000 51,345,000
Page 14 of 35


Short/Current Long Term Debt 699,000 1,756,000 1,748,000 2,277,000

Other Current Liabilities 9,262,000 5,216,000 3,770,000 4,001,000
Total Current Liabilities 60,021,000 56,539,000 53,992,000 57,623,000
Long Term Debt 3,263,000 3,419,000 3,424,000 3,314,000
Other Liabilities 60,822,000 55,482,000 55,006,000 51,890,000
Deferred Long Term Liability Charges - - - -
Minority Interest 630,000 748,000 756,000 970,000
Negative Goodwill - - - -
Total Liabilities 124,736,000 116,188,000 113,178,000 113,797,000
Stockholders' Equity
Misc Stocks Options Warrants - - - -
Redeemable Preferred Stock - - - -
Preferred Stock 10,391,000 10,391,000 10,391,000 10,391,000
Common Stock 14,000 14,000 14,000 16,000
Retained Earnings 12,191,000 11,017,000 10,057,000 11,533,000
Treasury Stock - - - -
Capital Surplus 23,818,000 23,776,000 23,834,000 26,443,000
Other Stockholder Equity (8,040,000) (7,611,000) (8,052,000) (6,724,000)
Total Stockholder Equity 38,374,000 37,587,000 36,244,000 41,659,000
Net Tangible Assets 29,783,000 28,622,000 27,462,000 4,347,000
*Currency in USD

Balance Sheet of Fiat (Quarterly)
Period Ending Sep 30, 2010 Jun 30, 2010 Mar 31, 2010 Dec 31, 2009
Assets
Current Assets

Cash And Cash Equivalents 11,211,000 12,217,000 9,671,000 10,819,000

Short Term Investments 860,000 700,000 855,000 439,000

Net Receivables 7,432,000 7,897,000 7,537,000 7,101,000

Inventory 8,979,000 9,319,000 9,012,000 8,748,000

Other Current Assets - - - 146,000
Total Current Assets 43,905,000 46,350,000 41,895,000 41,669,000
Long Term Investments 2,191,000 2,201,000 2,093,000 2,021,000
Property Plant and Equipment - - - -
Goodwill 2,884,000 3,087,000 2,907,000 2,776,000
Intangible Assets - - - -
Page 15 of 35

Accumulated Amortization - - - -
Other Assets - - - -
Deferred Long Term Asset Charges 2,521,000 2,663,000 2,509,000 2,433,000
Total Assets 70,403,000 73,475,000 68,027,000 67,235,000
Liabilities
Current Liabilities

Accounts Payable 11,856,000 13,081,000 12,074,000 12,281,000

Short/Current Long Term Debt 29,692,000 30,774,000 28,300,000 28,527,000

Other Current Liabilities 6,307,000 6,397,000 5,888,000 3,191,000
Total Current Liabilities 20,697,000 22,036,000 19,241,000 29,134,000
Long Term Debt 28,392,000 29,474,000 28,300,000 17,916,000
Other Liabilities - - - -
Deferred Long Term Liability Charges 3,951,000 3,894,000 3,704,000 3,593,000
Minority Interest - - - -
Negative Goodwill - - - -
Total Liabilities 59,432,000 62,339,000 57,432,000 56,934,000
Stockholders' Equity
Misc Stocks Options Warrants - - - -
Redeemable Preferred Stock - - - -
Preferred Stock - - - -
Common Stock 6,377,000 6,377,000 6,377,000 6,377,000
Retained Earnings 3,832,000 3,651,000 3,546,000 3,804,000
Treasury Stock 762,000 1,108,000 672,000 120,000
Capital Surplus - - - -
Other Stockholder Equity - - - -
Total Stockholder Equity - - - -
Net Tangible Assets - - - -
*Currency in EUR

Balance Sheet of Daimler AG (Annual)
Period Ending Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
Assets
Current Assets

Cash And Cash Equivalents 6,735,000 4,664,000 14,894,000 6,060,000

Short Term Investments 5,118,000 711,000 - 6,000

Net Receivables 8,607,000 10,724,000 6,135,000 7,423,000
Page 16 of 35


Inventory 12,845,000 16,805,000 14,086,000 18,396,000

Other Current Assets 643,000 1,331,000 922,000 479,000
Total Current Assets 54,280,000 55,389,000 61,120,000 80,431,000
Long Term Investments 7,263,000 6,167,000 8,773,000 9,868,000
Property Plant and Equipment - - - -
Goodwill 694,000 660,000 693,000 1,689,000
Intangible Assets - - - -
Accumulated Amortization - - - -
Other Assets - - - -
Deferred Long Term Asset Charges 1,830,000 2,544,000 1,613,000 4,772,000
Total Assets 128,821,000 132,225,000 135,094,000 217,634,000
Liabilities
Current Liabilities

Accounts Payable 5,422,000 6,268,000 6,730,000 13,478,000

Short/Current Long Term Debt 58,294,000 58,637,000 54,967,000 99,536,000

Other Current Liabilities 14,039,000 15,391,000 15,109,000 26,157,000
Total Current Liabilities 47,538,000 52,182,000 48,866,000 89,836,000
Long Term Debt 13,390,000 10,505,000 11,905,000 4,447,000
Other Liabilities - - - -
Deferred Long Term Liability Charges 5,353,000 4,716,000 3,963,000 4,927,000
Minority Interest - - - -
Negative Goodwill - - - -
Total Liabilities 98,560,000 101,003,000 98,376,000 180,709,000
Stockholders' Equity
Misc Stocks Options Warrants - - - -
Redeemable Preferred Stock - - - -
Preferred Stock - - - -
Common Stock 3,045,000 2,768,000 2,766,000 2,673,000
Retained Earnings 16,163,000 19,359,000 22,656,000 23,702,000
Treasury Stock 11,053,000 9,095,000 11,296,000 10,550,000
Capital Surplus - - - -
Other Stockholder Equity - - - -
Total Stockholder Equity - - - -
Net Tangible Assets - - - -
*Currency in EUR


Page 17 of 35

Balance Sheet of Toyota Motor Corporation (Annual)
Period Ending Mar 31, 2013 Mar 31, 2012 Mar 31, 2011
Assets
Current Assets

Cash And Cash Equivalents 18,246,000 20,405,000 25,105,000

Short Term Investments 16,484,000 15,327,000 17,246,000

Net Receivables 87,831,000 88,000,000 78,403,000

Inventory 18,219,000 19,713,000 15,737,000

Other Current Assets 5,596,000 6,275,000 6,243,000
Total Current Assets 146,375,000 149,720,000 142,734,000
Long Term Investments 151,605,000 141,364,000 132,933,000
Property Plant and Equipment 72,750,000 75,769,000 76,124,000
Goodwill - - -
Intangible Assets - - -
Accumulated Amortization - - -
Other Assets 6,051,000 5,600,000 7,985,000
Deferred Long Term Asset Charges - - -
Total Assets 376,781,000 372,452,000 359,775,000
Liabilities
Current Liabilities

Accounts Payable 47,311,000 51,096,000 40,892,000

Short/Current Long Term Debt 79,799,000 80,106,000 78,803,000

Other Current Liabilities 10,002,000 11,961,000 10,506,000
Total Current Liabilities 137,112,000 143,163,000 130,200,000
Long Term Debt 77,917,000 73,422,000 77,814,000
Other Liabilities 11,406,000 10,350,000 10,229,000
Deferred Long Term Liability Charges 14,717,000 11,044,000 9,775,000
Minority Interest 6,635,000 6,273,000 7,090,000
Negative Goodwill - - -
Total Liabilities 241,152,000 237,979,000 228,018,000
Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 4,216,000 4,825,000 4,791,000
Retained Earnings 134,741,000 144,809,000 142,805,000
Treasury Stock (12,032,000) (13,800,000) (15,219,000)
Capital Surplus 5,851,000 6,691,000 6,102,000
Other Stockholder Equity (3,782,000) (14,324,000) (13,812,000)
Page 18 of 35

Total Stockholder Equity 128,994,000 128,201,000 124,667,000
Net Tangible Assets 128,994,000 128,201,000 124,667,000
*Currency in USD

3.2 Common-size Statement
Common Size Income Statement of General Motors Corporation
Sep-30-12 Jun-30-12 Mar-31-12 Sep-30-11 Jun-30-11 Mar-31-11 Sep-30-10 Jun-30-10
Revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of goods sold 87.1% 86.9% 87.2% 86.4% 85.8% 87.5% 86.9% 86.2%
Gross profit 12.9% 13.1% 12.8% 13.6% 14.2% 12.5% 13.1% 13.8%
Selling, general and
administrative
8.6% 8.3% 10.2% 8.7% 7.9% 9.8% 8.0% 8.0%
EBITDA 4.5% 4.8% 4.3% 4.9% 6.2% 3.7% 5.1% 5.7%
EBIT 4.5% 4.8% 4.3% 4.9% 6.2% 3.7% 5.1% 5.7%
Pre-tax income 4.8% 4.9% 3.0% 5.0% 6.6% 3.9% 5.4% 4.7%
Income taxes 1.0% 0.6% 0.6% 0.3% -0.2% 0.4% -0.1% 1.1%
Net income 4.9% 4.9% 3.5% 5.7% 7.6% 9.3% 6.3% 4.6%


Common Size Financial Ratio Statement of Fiat
Annual Income Statement (values in 000's)
Period Ending: Trend 12/31/2006 12/31/2005 12/31/2004 12/31/2003
Liquidity Ratios

Current Ratio






192% 222% 1997% 160%
Quick Ratio






148% 178% 1179% 102%
Page 19 of 35

Cash Ratio


44% 42% 657% 27%
Profitability Ratios

Gross Margin





15% 15% 0% 12%
Operating Margin






4% 1% 0% 1%
Pre-Tax Margin









2% 2% 4% 4%
Profit Margin









1% 0% 4% 6%
Pre-Tax ROE









15% 14% 77% 37%
After Tax ROE








8% 2% 77% 51%

Common Size Financial Ratio Statement of Daimler AG
Annual Income Statement (values in 000's)
Period Ending: Trend 12/31/2009 12/31/2008 12/31/2007 12/31/2006
Liquidity Ratios

Current Ratio








114% 106% 127% 183%
Quick Ratio








87% 74% 96% 144%
Cash Ratio








21% 19% 45% 15%
Profitability Ratios

Gross Margin







17% 22% 24% 17%
Operating Margin






2% 6% 8% 1%
Pre-Tax Margin







3% 3% 9% 3%
Profit Margin









3% 1% 4% 2%
Pre-Tax ROE









8% 9% 24% 12%
After Tax ROE









9% 5% 10% 9%

Page 20 of 35

Common Size Income Statement of Toyota
12 months ended
Mar 31,
2013
Mar 31,
2012
Mar 31,
2011
Mar 31,
2010
Mar 31,
2009
Mar 31,
2008
Sales of products 94.79 94.23 93.82 93.53 93.40 94.41
Financing operations 5.21 5.77 6.18 6.47 6.60 5.59
Net revenues 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of products sold -81.63 -85.00 -84.16 -84.28 -85.09 -77.80
Cost of financing operations -2.86 -3.19 -3.31 -3.76 -4.81 -4.06
Gross profit -84.49% -88.19% -87.48% -88.04% -89.90% -81.86%
Selling, general and
administrative
-9.53 -9.90 -10.06 -11.18 -12.35 -9.50
Operating income (loss) 5.99% 1.91% 2.47% 0.78% -2.25% 8.64%
Interest and dividend income 0.45 0.54 0.48 0.41 0.67 0.63
Interest expense -0.10 -0.12 -0.15 -0.18 -0.23 -0.18
Foreign exchange gain (loss),
net
0.03 0.20 0.08 0.36 -0.01 0.03
Other income (loss), net 0.01 -0.20 0.10 0.16 -0.92 0.14
Other income
(expense)
0.38% 0.42% 0.50% 0.76% -0.48% 0.63%
Income (loss) before
income taxes and equity
in earnings of affiliated
companies
6.36% 2.33% 2.97% 1.54% -2.73% 9.27%
Provision for income taxes -2.50 -1.41 -1.65 -0.49 0.27 -3.47
Equity in earnings of affiliated
companies
1.05 1.06 1.13 0.24 0.21 1.03
Net income (loss) 4.91% 1.98% 2.45% 1.29% -2.25% 6.83%
Net (income) loss attributable
to non-controlling interests
-0.55 -0.46 -0.30 -0.18 0.12 -0.30
Net income (loss)
attributable to Toyota
Motor Corporation
4.36% 1.53% 2.15% 1.11% -2.13% 6.53%


Page 21 of 35

3.3 Financial Ratio
Financial Ratio of General Motors Company
Jun 2013 2012 2011 2010 2009 2008
Earnings/Share 2.92 3.24 3.88 3.03
Profit Margin, % 3.12 4.06 6.18 4.55 0.00 0.00
Return on Equity, % 16.33 16.72 23.82 16.61 0.00 0.00
Return on Assets, % 3.03 4.14 6.42 4.44 0.00 0.00
Price/Sales 0.31 0.30 0.29 0.40
Price/Earnings 11.96 7.25 7.28 11.35 0.00 0.00
Price/Book 1.68 0.99 1.13 1.46 0.00
Debt/Equity 0.43 0.28 0.30 0.27 0.25 0.00
Interest Coverage 28.89 -60.88 12.08 6.22 0.00 0.00
Book Value, $ 28.37 23.63 24.92 23.64 0.00 0.00
Dividend Payout, % 0.00 0.00 0.00 0.00 0.00 0.00

Financial Ratio of Fiat
Jun 2013 2012 2011 2010 2009 2008 2007
Earnings/Share 0.43 0.63 0.71 0.27 -0.72 2.43 2.15
Profit Margin, % 0.24 1.68 2.77 1.67 -1.69 2.90 3.51
Return on Equity, % 3.51 10.71 13.47 5.14 -7.76 17.41 22.79
Return on Assets, % 0.49 1.72 2.06 0.85 -1.30 3.07 3.66
Price/Sales 0.00 0.09 0.00 0.00 0.11 0.14 0.00
Price/Earnings 18.74 8.40 10.18 18.15 -10.63 5.32 0.00
Price/Book 0.87 0.00 0.00 0.31 0.49 0.00 0.00
Debt/Equity 0.00 2.12 2.13 2.57 2.06 1.69 2.16
Interest Coverage 1.36 2.24 2.38 0.00 0.00 0.00 0.00
Book Value, $ 0.00 0.00 0.00 15.83 15.56 0.00 12.62
Dividend Payout, % 0.00 0.00 0.00 0.00 0.00 17.38 0.00


Page 22 of 35

Financial Ratio of Daimler AG
Jun 2013 2012 2011 2010 2009 2008 2007
Earnings/Share 6.47 7.74 7.40 5.78 -3.60 2.24 6.35
Profit Margin, % 6.13 5.33 5.66 4.78 -3.35 1.47 4.01
Return on Equity, % 13.36 13.39 14.58 12.32 -8.31 4.32 10.42
Return on Assets, % 3.39 3.74 4.07 3.44 -2.05 1.07 2.95
Price/Sales 0.42 0.50 0.44 0.45 0.37 0.41 0.00
Price/Earnings 11.46 6.65 8.34 9.51 -11.15 26.75 0.00
Price/Book 1.51 0.94 1.14 1.16 0.93 1.20 0.00
Debt/Equity 1.15 0.95 0.86 0.73 1.04 0.95 0.83
Interest Coverage 24.10 5.47 7.70 5.51 -1.93 5.10 20.13
Book Value, $ 48.95 54.91 54.01 47.28 43.34 49.92 50.19
Dividend Payout, % 0.00 0.00 0.00 0.00 -22.12 147.19 38.27

Financial Ratio of Toyota
Jun 2013 2013 2012 2011 2010 2009 2008
Earnings/Share 8.43 7.35 2.26 3.04 1.46 -1.41 9.74
Profit Margin, % 5.32 4.36 1.53 2.15 1.11 -2.13 6.53
Return on Equity, % 9.61 7.53 2.56 3.74 1.92 -4.34 14.47
Return on Assets, % 3.53 2.71 0.93 1.37 0.69 -1.50 5.29
Price/Sales 0.79 0.78 0.53 0.53 0.61 0.60 0.00
Price/Earnings 14.85 11.58 33.17 25.17 54.51 -56.73 0.00
Price/Book 1.46 0.99 0.88 0.91 1.06 1.22 0.00
Debt/Equity 0.00 0.57 0.55 0.59 0.64 0.63 0.50
Interest Coverage 329.60 62.17 19.88 20.19 9.73 -10.96 53.85
Book Value, $ 0.00 85.75 85.03 83.76 74.92 65.32 61.96
Dividend Payout, % 21.83 28.53 53.83 35.41 65.33 -67.96 0.00



Page 23 of 35

3.4 Compare and Contrast Each Company
General Motors Company
General Motors Company announced that it had completed fresh-start accounting, and would be filing its
third quarter 2009 Form 10-Q and 2009 Form 10-K with the SEC today.
We are building the foundation that will allow us to return to public ownership, said Chris Liddell, GM
vice chairman and CFO. Completing fresh-start accounting is an important step in that process.
The new company, which was formed on July 10, 2009 through the acquisition of substantially all the assets
and certain liabilities of Motors Liquidation Company (formerly General Motors Corporation), had to complete
the process of adopting fresh-start accounting to record the acquisition and establishment of the new GM as well
as determine the fair value of assets and liabilities and implement new accounting policies.
The following table provides a summary of GMs financial results for the period ended December 31, 2009
under fresh-start accounting.
July 10-Dec. 31, 09
($ bils)
Global revenue
$57.5
Net income/(loss) attributed to stockholders $(4.3)
Net cash provided by operating activities $1.0

The $4.3 billion net loss includes the pre-tax impact of a $2.6 billion settlement loss related to the UAW retiree
medical plan and a $1.3 billion foreign currency re-measurement loss.
Page 24 of 35

Going public will enable the company to invest in designing, building and selling the worlds best vehicles,
attract the best people and access the capital markets. One of the most important measures in establishing the
foundation for going public is the companys ability to return to sustainable profitability.
As the results for 2009 show there is still significant work to be done. However, I continue to believe we
have a chance of achieving profitability in 2010, said Liddell. We are also dedicated to delivering on our
commitments to our stakeholders. For example we remain committed to repaying the outstanding balance of the
U.S. Treasury and Export Development Canada loans by June 2010 at the latest.

Fiat
The 2010 consolidated financial statements have been prepared in accordance with the International
Financial Reporting Standards (the IFRS) issued by the International Accounting Standards Board (IASB)
and adopted by the European Union, and with the provisions implementing article 9 of Legislative Decree no.
38/2005. The designation IFRS also includes all valid International Accounting Standards (IAS), as well as
all interpretations of the International Financial Reporting Interpretations Committee (IFRIC), formerly the
Standing Interpretations Committee (SIC).
The financial statements are prepared under the historical cost convention, modified as required for the
valuation of certain financial instruments, as well as on the going concern assumption. In this respect, despite
operating in a continuingly difficult economic and financial environment, the Groups assessment is that no
material uncertainties (as defined in paragraph 25 of IAS 1) exist about its ability to continue as a going concern,
in view also of the measures already undertaken by the Group to adapt to the changed levels of demand and the
Groups industrial and financial flexibility

Page 25 of 35

Daimler AG
Applied IFRSs. The accounting policies applied in the consolidated financial statements comply with
the IFRSs required to be applied as of December 31, 2011. Initial application of accounting policies in
2011 did not result in any material effects on the consolidated financial statements.
Presentation. Presentation in the statement of financial position differentiates between current and
non-current assets and liabilities. Assets and liabilities are classified as current if they mature within one
year or within a longer operating cycle. Deferred tax assets and liabilities as well as assets and provisions
for pensions and similar obligations are generally presented as non-current items.
The consolidated statement of income is presented using the cost-of-sales method.
Commercial practices with respect to certain products manufactured by the Group necessitate that sales
financing, including leasing alternatives, be made available to the Groups customers. Accordingly, the Groups
consolidated financial statements are significantly influenced by the activities of its financial services business.
To enhance readers understanding of the Groups consolidated financial statements, unaudited information
with respect to the results of operations and financial position of the Groups industrial and financial services
business activities is provided in addition to the audited consolidated financial statements. Such information,
however, is not required by IFRS and is not intended to, and does not represent the separate IFRS results of
operations and financial position of the Groups industrial or financial services business activities. Eliminations
of the effects of transactions between the industrial and financial services businesses have generally been
allocated to the industrial business columns.
To increase the transparency of the consolidated statement of cash flows, the Group separately discloses the
cash flows from income taxes in the cash flow provided by/used for operating activities. Therefore the cash flow
provided by/used for operating activities is derived from profit before income taxes instead of net profit.
Page 26 of 35

Prior-year presentation has been modified accordingly. Furthermore, prior-year amounts of the items Other
non-cash expense and income and Other operating assets and liabilities have been adjusted for effects related
to income taxes from 434 million to 181 million and from 2,502 million to 1,990 million respectively.

Toyota
The following is a description of the valuation methodologies of Toyota used for the assets and liabilities
measured at fair value, key inputs and significant assumptions:
Cash equivalents
Cash equivalents represent highly liquid investments with original maturities of three months or less. Generally,
quoted market prices are used to determine the fair value of these instruments.
Marketable securities and other securities investments
Marketable securities and other securities investments include debt securities and equity securities. Toyota uses
quoted market prices for identical or similar assets or liabilities to measure fair value. Marketable securities and
other securities investments classified as Level 3 include retained interests in securitized financial receivables,
which are measured at fair value using the assumptions such as interest rate, loss severity and other factors.
Derivative financial instruments
Toyota estimates the fair value of derivative financial instruments using industry-standard valuation models
that requires observable inputs including interest rates and foreign exchange rates, and the contractual terms. In
other certain cases when market data is not available, key inputs to the fair value measurement include quotes
Page 27 of 35

from counterparties, and other market data. Toyotas derivative fair value measurements consider assumptions
about counterparty and our own non-performance risk, using such as credit default probabilities.


4.0 Conclusion
Performance of Toyota
Consolidated Performance (U.S. GAAP)

Yen in millions
U.S. dollars
*1
in
millions
% change
2009 2010 2011 2011
2011 vs.
2010
For the Year:
Net Revenues 20,529,570 18,950,973 18,993,688 $228,247 +0.2
Operating Income (Loss) (461,011) 147,516 468,279 5,632 +217.4
Net Income (Loss) attributable to Toyota
Motor Corporation
*2

(436,937) 209,456 408,183 4,909 +94.9
ROE -4.0% 2.1% 3.9% - -

At Year-End:

Total Assets 29,062,037 30,349,287 29,818,166 $358,607 -1.7
Shareholders' Equity 10,061,207 10,359,723 10,332,371 124,262 -0.3


Yen U.S. dollars
*1
% change
2009 2010 2011 2011
2011 vs.
2010
Per Share Data:
Net Income (Loss) attributable to Toyota
Motor Corporation
*2

(139.13) 66.79 130.17 $1.57 +94.9
Annual Cash Dividends 100.00 45.00 50.00 0.60 +11.1
Shareholders' Equity 3,208.41 3,303.49 3,295.08 39.63 -0.3

Stock Information (March 31):

Stock Price 3,120 3,745 3,350 $40.29 -10.5
Market Capitalization (Yen in millions,
U.S. dollars in millions)
10,757,752 12,912,751 11,550,792 $138,915 -10.5
Page 28 of 35

Consolidated vehicle sales in Japan and overseas increased by 71 thousand units, or 1.0%, to 7,308
thousand units for the fiscal year compared to the previous year. Vehicle sales in Japan decreased by 11.5%.
However, with the efforts of dealers nationwide, market share including mini-vehicles was 43.7%, that
remained at a high level. Meanwhile, overseas vehicle sales increased by 6.3%, because of the sales expansion
in Asia and Other Regions. As for the results of operations, net revenues increased by 0.2%, to 18,993.6
billion for the fiscal year compared to the previous year, and operating income increased by 217.4%, to 468.2
billion. Income before income taxes and equity in earnings of affiliated companies increased by 93.3%, to
563.2 billion. Net income attributable to Toyota Motor Corporation increased by 94.9%, to 408.1 billion.


5.0 References
http://en.wikipedia.org/wiki/General_Motors
http://en.wikipedia.org/wiki/Fiat
http://en.wikipedia.org/wiki/Daimler_AG
http://en.wikipedia.org/wiki/Toyota
http://en.wikipedia.org/wiki/Automotive_industry
http://finance.yahoo.com
http://www.rocketfinancial.com/Financials.aspx?fID=128945&p=1&pw=3481473&rID=5&stID=1
http://www.stock-analysis-on.net/NYSE/Company/Toyota-Motor-Corp/Common-Size/Income-Stateme
nt
http://www.barchart.com/profile.php?sym=DDAIF&view=ratios
http://www.barchart.com/profile.php?sym=FIATY&view=ratios
http://www.barchart.com/profile.php?sym=GM&view=ratios
Page 29 of 35

http://www.barchart.com/profile.php?sym=TM&view=ratios
https://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2010/Apr/0407_earni
ngs.html
http://annualreport2010.fiatspa.com/en/fiat-group-consolidated-statements/notes-consolidated-financial-
statements/significant-accounting-po
http://ar2011.daimler.com/consolidated_financial_statements/notes/1_significant_accounting_policies


6.0 Coursework
1. List and briefly explain twelve accounting principles.
Accountants have some basic rules and assumptions upon which rest all their work in preparing financial
statements. These accounting rules and assumptions dictate what financial items to measure and when and how
to measure them. By the end of this discussion, you will see how necessary these rules and assumptions are to
accounting and financial reporting.
So, here are the 12 very important accounting principles:
1. accounting entity
2. going concern
3. measurement
4. units of measure
5. historical cost
6. materiality
7. estimates and judgments
8. consistency
Page 30 of 35

9. conservatism
10. periodicity
11. substance over form
12. accrual basis of presentation

These rules and assumptions define and qualify all that accountants do and all that financial reporting
reports. We will deal with each in turn.
1. Accounting Entity. The accounting entity is the business unit (regardless of the legal business form)
for which the financial statements are being prepared. The accounting entity principle states that there is a
"business entity" separates from its owners... a fictional "person" called a company for which the books are
written.
2. Going Concern. Unless there is evidence to the contrary, accountants assume that the life of the
business entity is infinitely long. Obviously this assumption cannot be verified and is hardly ever true. But this
assumption does greatly simplify the presentation of the financial position of the firm and aids in the
preparation of financial statements.
If during the review of a corporation's books, the accountant has reason to believe that the company
may go bankrupt, he must issue a "qualified opinion" stating the potential of the company's demise. More on
this concept later.
3. Measurement. Accounting deals with things that can be quantifiedresources and obligations upon
which there is an agreed-upon value. Accounting onl y deals with things that can be measured.
Page 31 of 35

This assumption leaves out many very valuable company assets. For example, loyal customers,
while necessary for company success, still cannot be quantified and assigned a value and thus are not stated in
the books.
Financial statements contain only the quantifiable estimates of assets (what the business owns) and
liabilities (what the business owes). The difference between the two equals owner's equity.
4. Units of Measure. U.S. dollars are the units of value reported in the financial statements of U.S.
companies. Results of any foreign subsidiaries are translated into dollars for consolidated reporting of results.
As exchange rates vary, so do the values of any foreign currency denominated assets and liabilities.
5. Historical Cost. What a company owns and what it owes are recorded at their original (historical) cost
with no adjustment for inflation.
A company can own a building valued at $50 million yet carry it on the books at its $5 million original
purchase price (less accumulated depreciation), a gross understatement of value.
This assumption can greatly understate the value of some assets purchased in the past and depreciated to
a very low amount on the books. Why, you ask, do accountants demand that we obviously understate assets?
Basically, it is the easiest thing to do. You do not have to appraise and reappraise all the time.
6. Materiality. Materiality refers to the relative importance of different financial information.
Accountants don't sweat the small stuff. But all transactions must be reported if they would materially affect
the financial condition of the company.
Remember, what is material for a corner drug store is not material for IBM (lost in the rounding errors).
Materiality is a straightforward judgment call.
7. Estimates and Judgments. Complexity and uncertainty make any measurement less than exact.
Estimates and judgments must often be made for financial reporting. It is okay to guess if (1) that is the best
Page 32 of 35

you can do and (2) the expected error would not matter much anyway. But accountants should use the same
guessing method for each period. Be consistent in your guesses and do the best you can.
8. Consistency. Sometimes identical transactions can be accounted for differently. You could do it
this way or that way, depending upon some preference. The principle of consistency states that each individual
enterprise must choose a single method of reporting and use it consistently over time. You cannot switch back
and forth. Measurement techniques must be consistent from any one fiscal period to another.
9. Conservatism. Accountants have a downward measurement bias, preferring understatement to
overvaluation. For example, losses are recorded when you feel that they have a great probability of occurring,
not later, when they actually do occur. Conversely, the recording of a gain is postponed until it act ual l y
occurs, not when it is only anticipated.
10. Periodicity. Accountants assume that the life of a corporation can be divided into periods of time for
which profits and losses can be reported, usually a month, quarter or year.
What is so special about a month, quarter or year? They are just convenient periods; short enough so
that management can remember what has happened, long enough to have meaning and not just be random
fluctuations. These periods are called "fiscal" periods. For example, a "fiscal year" could extend from October
1 in one year till September 30 in the next year. Or a company's fiscal year could be the same as the calendar
year starting on January 1 and ending on December 31.



Page 33 of 35

"Lines" are perhaps not as important as principles, but they can be confusing if you don't know how
accountants use them in financial statements. Financial statements often have two types of lines to indicate
types of numeric computations.
Single lines on a financial statement indicate that a calculation (addition or subtraction) has been made on
the numbers just preceding in the column.
The double underline is saved for the last. That is, use of a double underline signifies the very last amount
in the statement.
Note that while all the numbers in the statement represent currency, only the top line and the bottom line
normally show a dollar sign.
a SALES [$]
b COST OF GOODS SOLD
a-b=c GROSS MARGIN
d SALES & MARKETING
e R&D
f G&A
d+e+f=g TOTAL EXPENSES
h INTEREST INCOME
i INCOME TAXES
c-g+h-i=j NET INCOME [$]

FASB
1
makes the rules and they are called GAAP.
2
Financi al Accounting Standard Board ;
2
Generall y Accept ed Principles
Page 34 of 35

11. Substance over Form. Accountants report the economic "substance" of a transaction rather than
just its form. For example, an equipment lease that is really a purchase dressed in a costume is booked as a
purchase and not as a lease on financial statements. This substance over form rule states that if it's a duck...
then you must report it as a duck.
12. Accrual Basis of Presentation. This concept is very important to understand/ Accountants translate
into dollars of profit or loss all the money-making (or losing) activities that take place during a fiscal period. In
accrual accounting, if a business action in a period makes money, then all its product costs and its business
expenses should be reported in that period. Otherwise, profits and losses could flop around depending on which
period entries were made.
In accrual accounting, this documentation is accomplished by matching for presentation: (1) the revenue
received in selling product and (2) the costs to make that specific product sold. Fiscal period expenses such as
selling, legal, administrative and so forth are then subtracted.
Key to accrual accounting is determining: (1) when you may report a sale on the financial statements,
(2) matching and then reporting the appropriate costs of products sold and (3) using a systematic and rational
method allocating all the other costs of being in business for the period. We will deal with each point
separately:
Revenue recognition. In accrual accounting, a sale is recorded when all the necessary activities to provide
the good or service have been completed regardless of when cash changes hands. A customer just ordering a
product has not yet generated any revenue. Revenue is recorded when the product is shipped.
Matching principle. In accrual accounting, the costs associated with making products (Cost of Goods
Sold) are recorded at the same time the matching revenue is recorded.
Allocation. Many costs are not specifically associated with a product. These costs must be allocated to
fiscal periods in a reasonable fashion. For example, each month can be charged with one-twelfth of the general
Page 35 of 35

business insurance policy even though the policy, was paid in full at the beginning of the year. Other expenses
are recorded when they arise (period expenses).
Note that all businesses with inventory must use the accrual basis of accounting. Other businesses may use
a "cash basis" if they desire. Cash basis financial statements are just like the Cash Flow Statement or a simple
check book. We'll describe features of accrual accounting in the chapters that follow.

Who makes all these rul es? The simple answer is that "FASB" makes the rules and they are called
"GAAP." Note also that FASB is made up of "CPAs." Got that?
Financial statements in the United States must be prepared according to the accounting profession's set of
rules and guiding principles called the Gener al l y Accept ed Account i ng Pr i nci pl es , GAAP for
short. Other countries use different rules.
GAAP is a series of conventions, rules and procedures for preparing and reporting financial statements.
The Fi nanci al Account i ng St andar ds Boar d, FASB for short, lays out the GAAP conventions, rules
and procedures.
The FASB's mission is "to establish and improve standards of financial accounting and reporting for
guidance and education of the public, including issuers, auditors, and users of financial information." The
Secur i t i es and Exchange Commi s s i on (SEC) designates FASB as the organization responsible for
setting accounting standards for all U.S. public companies.
CPAs CPAs are, of course, Certified Public Accountants. These very exalted individuals are specially
trained in college, and have practiced auditing companies for a number of years. In addition, they have passed a
series of exams testing their clear understanding of both accounting principles and auditing procedures. Note
that FASB is made up mostly of CPAs and that CPAs both develop, interpret and apply GAAP when they audit
a company. All this is fairly incestuous.