The Yokohama Rubber Co., Ltd
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The Yokohama Rubber Co., Ltd Financial Snapshot
Operating Performance
Fast Facts
5-36-11, Shimbashi, Minato-ku, Tokyo, 105- The company reported revenue of US$6,520 million
Headquarters Address
8685,Japan during the fiscal year 2011 (2011). The company's
revenue grew at a CAGR of 11.47% during 2007–
Telephone + 81 3 54004520
2011, with an annual growth of 22.80% over 2010. In
2011, the company recorded an operating margin of
Fax N/A 5.46%, as against 4.62% in 2010.
Website www.yrc.co.jp
Revenue and Margins
Ticker Symbol, Stock Exchange 5101, The Tokyo Stock Exchange
Number of Employees 19,272
Fiscal Year End December
Revenue (in US$ million) 6,520
SWOT Analysis
Strengths Weaknesses Return on Equity
Broad product portfolio Dependence on Japan The company recorded a return on equity (ROE) of
8.50% for 2011, as compared to its peers, The
Goodyear Tire & Rubber Company (Ticker: GT),
Focus on research and development Limited liquidity position Sumitomo Rubber Industries Ltd (Ticker: 5110) and
Bridgestone Corporation (Ticker: 5108), which
Improving operating performance recorded ROEs of 45.79%, 14.36% and 9.10%
respectively. The company reported an operating
margin of 5.46% in 2011.
Opportunities Threats
Emerging markets provide opportunity Return on Equity
Economic instability in EU nations
for growth
Strategic initiatives Natural calamity prone region
Traffic volume on the rise Regulatory environment
Liquidity Position
The company reported a current ratio of 1.09 in 2011,
as compared to its peers, The Goodyear Tire &
Rubber Company, Sumitomo Rubber Industries Ltd
and Bridgestone Corporation, which recorded current
ratios of 1.65, 1.34 and 1.66 respectively. As of
December 2011, the company recorded cash and
short-term investments of worth US$353 million,
against US$109 million current debt. The company
reported a debt to equity ratio of 0.91 in 2011 as
compared to its peers, The Goodyear Tire & Rubber
Company, Sumitomo Rubber Industries Ltd and
Bridgestone Corporation, which recorded debt to
equity ratios of 6.94, 1.39 and 0.53 respectively.
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The Yokohama Rubber Co., Ltd - SWOT Profile Page 1
The Yokohama Rubber Co., Ltd
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset and Liabilities .........................................................................................................................................11
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................12
2.2.4 Solvency ..........................................................................................................................................................13
2.2.5 Valuation ..........................................................................................................................................................14
2.3 Competitive Benchmarking ..................................................................................................................................15
2.3.1 Market Capitalization .......................................................................................................................................15
2.3.2 Efficiency ..........................................................................................................................................................16
2.3.3 Valuation ..........................................................................................................................................................17
2.3.4 Turnover – Inventory and Asset .......................................................................................................................18
2.3.5 Liquidity ............................................................................................................................................................19
3 SWOT Analysis ...................................................................................................................................... 20
3.1 SWOT Analysis - Overview ..................................................................................................................................20
3.2 Strengths ..............................................................................................................................................................20
3.3 Weaknesses .........................................................................................................................................................20
3.4 Opportunities ........................................................................................................................................................21
3.5 Threats .................................................................................................................................................................21
4 History .................................................................................................................................................... 23
5 Key Employees ...................................................................................................................................... 26
6 Key Employee Biographies................................................................................................................... 28
7 Locations and Subsidiaries .................................................................................................................. 29
7.1 Head Office ..........................................................................................................................................................29
7.2 Other Locations and Subsidiaries ........................................................................................................................29
8 Appendix ................................................................................................................................................ 32
8.1 Methodology .........................................................................................................................................................32
8.2 Ratio Definitions ...................................................................................................................................................32
8.3 Disclaimer..............................