Toyota vs Honda – Other Financial Analysis

4. Other financial and non-financial analysis This section objective is to compare significant financial and non-financial information and identify risks reported in Toyotas and Hondas 2010 Annual Report, Notes to the Financial Statements, Company Official Websites, Bloomberg and Thompson Reuters which are not reflected in our financial ratio analysis and might have a significant impact in our investment decision making process. Dividends Payments and Dividend Yield Cash dividends per share Year 31/03/2008 31/03/2009 31/03/2010Company Toyota ? 140. 00 ? snow. 00 ? 45. 00 Honda ? 86. 00 ? 63. 00 ? 38. 00 Estimated dividend tax return* % Year 31/03/2008 31/03/2009 31/03/2010 Toyota 2. 82% 3. 18% 1. 20% Honda 3. 02% 2. 74% 1. 15% * A financial ratio that shows how much a play along pays out in dividends each class relative to its share price. The dividend yield is the return on investment for a stock. Toyota has been paying higher dividends per sha re oer the three financial years ended at March, 31st.In addition, the dividend yield calculation shows that Toyota has been providing a higher ROI for its shareholders stocks investment in 2009 and 2010. Contractual Obligations Contractual Obligations* Payments imputable by period (Yen Million) Less than 1 year 1 to 3 years 3 to 5 years 5 years and after fundamental Toyota ? 5,544,923 ? 4,271,809 ? 1,477,862 ? 1,345,294 ? 12,639,888 Honda ? 2,086,970 ? 1,680,539 ? 781,779 ? 135,967 ? 4,685,255 Ratio Toyota over Honda 2. 66 2. 54 1. 9 9. 89 2. 70 * Includes short and long term borrowings, capital and operating leases, interest payments and contributed defined return pension plans. The above mentioned analysis is meant to understand the future obligations Toyota and Honda have in regards to their future earnings. For Example, for every ? 1 million earned in the 2011 financial year by Toyota, the company is committed to pay its contractual oblig ations of ? 266,000, while, for the same ? 1 million Honda 2011 financial year earnings, the company is only committed to pay ? 100,000.This operator that Honda would have more earnings to spare for future business developments and dividend payments. Net Revenue Geographic Segmentation Net Revenues Geographic Segmentation Yen in Millions Toyota % Honda % Japan ? 7,314,813 39% ? 1,577,318 18% North America ? 5,583,228 29% ? 3,736,447 44% Europe ? 2,082,671 11% ? 764,785 9% Asia ? 2,431,648 13% ? 1,543,397 18% Others ? 1,538,613 8% ? 957,227 11% ? 18,950,973 100% ? 8,579,174 100% The table above shows the concentration % of Toyota and Honda Net Revenue by geographical segmentation.Toyota top net revenue segments contribution comes from Japan at 39%, followed by North America 29% and Asia 13% while, Honda top net revenue segments comes from North America 44%, Asia and Japan are tied with 18%. Knowing that Japan was hit by a Tsunami in the first quarter of 2011 in ou r opinion, this natural catastrophic event will adversely coin Toyota net revenue in Japan for the upcoming financial year. This means that Honda overall, will probably have a more stable stream of revenue from the North America and Asia regions to support its operations.