Analysis of Operating Leases
An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.
Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)
Toyota Motor Corp., future operating lease payments (before adoption of FASB Topic 842)
US$ in millions, translated from JPY ￥
Based on: 20-F (reporting date: 2015-03-31), 20-F (reporting date: 2014-03-31), 20-F (reporting date: 2013-03-31), 20-F (reporting date: 2012-03-31), 20-F (reporting date: 2011-03-31), 20-F (reporting date: 2010-03-31).
1 Internal rate of return on capital leases
| Year | Future operating lease payments (as reported) | Year | Future operating lease payments (estimated) | Present value at 0.05% |
|---|---|---|---|---|
| 2016 | 123) | 2016 | 123) | 123) |
| 2017 | 103) | 2017 | 103) | 103) |
| 2018 | 88) | 2018 | 88) | 88) |
| 2019 | 61) | 2019 | 61) | 61) |
| 2020 | 46) | 2020 | 46) | 45) |
| 2021 and thereafter | 216) | 2021 | 46) | 45) |
| 2022 | 46) | 45) | ||
| 2023 | 46) | 45) | ||
| 2024 | 46) | 45) | ||
| 2025 | 34) | 34) | ||
| Total: | 637) | 637) | 635) |
Based on: 20-F (reporting date: 2015-03-31).
| Year | Future operating lease payments (as reported) | Year | Future operating lease payments (estimated) | Present value at 0.05% |
|---|---|---|---|---|
| 2015 | 119) | 2015 | 119) | 119) |
| 2016 | 101) | 2016 | 101) | 101) |
| 2017 | 82) | 2017 | 82) | 81) |
| 2018 | 68) | 2018 | 68) | 68) |
| 2019 | 49) | 2019 | 49) | 49) |
| 2020 and thereafter | 188) | 2020 | 49) | 49) |
| 2021 | 49) | 48) | ||
| 2022 | 49) | 48) | ||
| 2023 | 42) | 42) | ||
| Total: | 608) | 608) | 606) |
Based on: 20-F (reporting date: 2014-03-31).
| Year | Future operating lease payments (as reported) | Year | Future operating lease payments (estimated) | Present value at 0.06% |
|---|---|---|---|---|
| 2014 | 120) | 2014 | 120) | 120) |
| 2015 | 100) | 2015 | 100) | 100) |
| 2016 | 85) | 2016 | 85) | 85) |
| 2017 | 67) | 2017 | 67) | 67) |
| 2018 | 57) | 2018 | 57) | 57) |
| 2019 and thereafter | 228) | 2019 | 57) | 57) |
| 2020 | 57) | 57) | ||
| 2021 | 57) | 57) | ||
| 2022 | 57) | 57) | ||
| 2023 | 1) | 1) | ||
| Total: | 657) | 657) | 655) |
Based on: 20-F (reporting date: 2013-03-31).
| Year | Future operating lease payments (as reported) | Year | Future operating lease payments (estimated) | Present value at 0.07% |
|---|---|---|---|---|
| 2013 | 126) | 2013 | 126) | 126) |
| 2014 | 97) | 2014 | 97) | 97) |
| 2015 | 79) | 2015 | 79) | 79) |
| 2016 | 70) | 2016 | 70) | 70) |
| 2017 | 62) | 2017 | 62) | 62) |
| 2018 and thereafter | 251) | 2018 | 62) | 62) |
| 2019 | 62) | 62) | ||
| 2020 | 62) | 62) | ||
| 2021 | 62) | 62) | ||
| 2022 | 3) | 3) | ||
| Total: | 686) | 686) | 684) |
Based on: 20-F (reporting date: 2012-03-31).
| Year | Future operating lease payments (as reported) | Year | Future operating lease payments (estimated) | Present value at 0.07% |
|---|---|---|---|---|
| 2012 | 111) | 2012 | 111) | 111) |
| 2013 | 89) | 2013 | 89) | 89) |
| 2014 | 68) | 2014 | 68) | 68) |
| 2015 | 56) | 2015 | 56) | 56) |
| 2016 | 49) | 2016 | 49) | 49) |
| 2017 and thereafter | 158) | 2017 | 49) | 49) |
| 2018 | 49) | 49) | ||
| 2019 | 49) | 49) | ||
| 2020 | 12) | 12) | ||
| Total: | 531) | 531) | 530) |
Based on: 20-F (reporting date: 2011-03-31).
| Year | Future operating lease payments (as reported) | Year | Future operating lease payments (estimated) | Present value at 0.06% |
|---|---|---|---|---|
| 2011 | 106) | 2011 | 106) | 106) |
| 2012 | 87) | 2012 | 87) | 87) |
| 2013 | 70) | 2013 | 70) | 70) |
| 2014 | 54) | 2014 | 54) | 54) |
| 2015 | 46) | 2015 | 46) | 46) |
| 2016 and thereafter | 195) | 2016 | 46) | 46) |
| 2017 | 46) | 46) | ||
| 2018 | 46) | 46) | ||
| 2019 | 46) | 46) | ||
| 2020 | 11) | 11) | ||
| Total: | 558) | 558) | 557) |
Based on: 20-F (reporting date: 2010-03-31).
Adjustments to Financial Statements for Operating Leases
Toyota Motor Corp., adjustments to financial statements
US$ in millions, translated from JPY ￥
Based on: 20-F (reporting date: 2015-03-31), 20-F (reporting date: 2014-03-31), 20-F (reporting date: 2013-03-31), 20-F (reporting date: 2012-03-31), 20-F (reporting date: 2011-03-31), 20-F (reporting date: 2010-03-31).
1, 2 Equal to total present value of future operating lease payments.
Toyota Motor Corp., Financial Data: Reported vs. Adjusted
Adjusted Financial Ratios for Operating Leases (Summary)
Toyota Motor Corp., adjusted financial ratios
Based on: 20-F (reporting date: 2015-03-31), 20-F (reporting date: 2014-03-31), 20-F (reporting date: 2013-03-31), 20-F (reporting date: 2012-03-31), 20-F (reporting date: 2011-03-31), 20-F (reporting date: 2010-03-31).
| Financial ratio | Description | The company |
|---|---|---|
| Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | Toyota Motor Corp. adjusted total asset turnover ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Adjusted debt to equity | A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. | Toyota Motor Corp. adjusted debt to equity ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015. |
| Adjusted ROA | A profitability ratio calculated as net income divided by adjusted total assets. | Toyota Motor Corp. adjusted ROA improved from 2013 to 2014 and from 2014 to 2015. |
Toyota Motor Corp., Financial Ratios: Reported vs. Adjusted
Adjusted Total Asset Turnover
Based on: 20-F (reporting date: 2015-03-31), 20-F (reporting date: 2014-03-31), 20-F (reporting date: 2013-03-31), 20-F (reporting date: 2012-03-31), 20-F (reporting date: 2011-03-31), 20-F (reporting date: 2010-03-31).
2015 Calculations
1 Total asset turnover = Net revenues ÷ Total assets
= 227,030 ÷ 397,881 = 0.57
2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 227,030 ÷ 398,517 = 0.57
| Activity ratio | Description | The company |
|---|---|---|
| Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | Toyota Motor Corp. adjusted total asset turnover ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Adjusted Debt to Equity
Based on: 20-F (reporting date: 2015-03-31), 20-F (reporting date: 2014-03-31), 20-F (reporting date: 2013-03-31), 20-F (reporting date: 2012-03-31), 20-F (reporting date: 2011-03-31), 20-F (reporting date: 2010-03-31).
2015 Calculations
1 Debt to equity = Total debt ÷ Total Toyota Motor Corporation shareholders’ equity
= 158,202 ÷ 139,948 = 1.13
2 Adjusted debt to equity = Adjusted total debt ÷ Total Toyota Motor Corporation shareholders’ equity
= 158,837 ÷ 139,948 = 1.13
| Solvency ratio | Description | The company |
|---|---|---|
| Adjusted debt-to-equity | A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. | Toyota Motor Corp. adjusted debt-to-equity ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015. |
Adjusted Return on Assets (ROA)
Based on: 20-F (reporting date: 2015-03-31), 20-F (reporting date: 2014-03-31), 20-F (reporting date: 2013-03-31), 20-F (reporting date: 2012-03-31), 20-F (reporting date: 2011-03-31), 20-F (reporting date: 2010-03-31).
2015 Calculations
1 ROA = 100 × Net income attributable to Toyota Motor Corporation ÷ Total assets
= 100 × 18,117 ÷ 397,881 = 4.55%
2 Adjusted ROA = 100 × Net income attributable to Toyota Motor Corporation ÷ Adjusted total assets
= 100 × 18,117 ÷ 398,517 = 4.55%
| Profitability ratio | Description | The company |
|---|---|---|
| Adjusted ROA | A profitability ratio calculated as net income divided by adjusted total assets. | Toyota Motor Corp. adjusted ROA improved from 2013 to 2014 and from 2014 to 2015. |