F-Series Numbers = Holy $%@&!!!

[Biker16]

Match revenue before transfers with units sold, to get your revenue per unit.

 

3,969,582,000,000 / 1,030,229 = 3,853,106 Y

4,377,124,000,000 / 1,395,105 = 3,137,487 Y

 

I don't know how they convert to dollars (I would assume there's a memo outlining the proper procedure for SEC filings somewhere), but at current rates you get:

 

$32,809 in Japan and $26,713 in NA

 

--

 

The intersegment elimination of operating expenses is tied closely to the intersegment sales figures (they are within .01% of each other for the first half of FY2015), which suggests that Toyota is booking operating expenses and revenue back into the manufacturing entity, something that Ford does not do.

 

VW is another company that walks revenue and expenses back to the country of manufacture in their filings. I suspect that both of these companies do so in order to bolster the appearance of their home country operations.

 

Therefore, you cannot jibe Ford's geographic breakdowns with Toyota's on a 100% matching basis, as some of the revenue and expenses are for vehicles that were sold in other business units.

 

 

 

 

 

However, the intersegment elimination for NA is so small, as a percentage of overall revenue, that it would have minimal impact when reconciling Toyota's reported ~4% margin to Ford's.

 

I dont think you can Eliminate the inter segment transfers from the margins Toyota NA. you don't know "where" the product is coming from.

 

I suspect a lot of those high margin Lexus, and premium products are being booked as revenues in Japan not in the US. If this is True you really don't have a true picture of the Margins of the Products Toyota sells in the US that are made in Japan.

 

To me it makes sense to book profit where the product is made rather than where it is sold. The "Cost" isn't in the market where it is sold, it is where the product is made and because of that it can create incentives not to optimize Production in one market or the other.

 

Although Richard says this doesnt happen. Ford's system appears to punish the producer of product while toyota's system rewards the producer and punishes the seller.

 

Or maybe the difference is that no one from Toyota City is firing managers for delivering a 4% Margin on the Financial report.

 

I am going to go out a limb and say Ford will move to mimic the accounting of Toyota in the next Decade.

 

A few years ago Toyota Australia were caught and fined for price transferring to avoid tax, this stuff goes on all the time

and you have to wonder if the Japanese government is on board with it or simply looking the other way.....

 

the accounting Is pre tax isn't it? It isn't the accounting that the problem it's not paying the taxes on the products made in Japan.

 

 

Edited December 16, 2014 by Biker16

[RichardJensen]

 

I suspect a lot of those high margin Lexus, and premium products are being booked as revenues in Japan

 

 

 

No, they are not.

 

I don't know how I could possibly make this more clear.

 

REVENUE FROM SALES TO EXTERNAL CUSTOMERS / UNITS SOLD = REVENUE PER UNIT.

[RichardJensen]

I mean, good grief, Biker, you don't know how these numbers are put together, you admit that you don't know how these numbers are put together, and then the first thing you do when someone explains how the numbers are put together is tell him he's wrong.

[Biker16]

 

No, they are not.

 

I don't know how I could possibly make this more clear.

 

REVENUE FROM SALES TO EXTERNAL CUSTOMERS / UNITS SOLD = REVENUE PER UNIT.

 

Ok, thanks

 

I just don;t understand why there is such a difference in Operating margin between NA and Japan.

 

When The " higher margin" market should be the US.

Edited December 16, 2014 by Biker16

[RichardJensen]

 

Ok, thanks

 

I just don;t understand why there is such a difference in Operating margin between NA and Japan.

 

When The " higher margin" market should be the US.

 

Not necessarily. Did you notice the sizable gap in per unit revenue? Japan's comparatively closed market may be preventing price competition on the scale seen stateside.