INDIVIDUAl

ASSIGNMENT
ACC305

Class: FIN 1701

Name: Nguyen Duc Minh
Roll number: HS173138
 TOEI ANIMATION Co., Ltd
Financial Statement

Part 1: Overview

- Founded in 1948 under the name Japan Animated Films, in 1956 the studio was acquired
by Toei to expand its structure and develop into a corporation called Toei Doga Co., Ltd
(also has one another name is Toei Animation Co., Ltd when doing business outside
Japan). During those years, this company produced a large number of TV series, and
movies and adapted many mangas by famous authors into anime, which gradually
became popular and famous all over the world.

- In 1998, the company changed its Japanese name to Toei Animation and became the
sponsor of a Japanese satellite TV channel specializing in broadcasting anime and
Animax along with other anime businesses and production studios such as TMS
Entertainment, Sunrise, and Nihon. Ad Systems Inc.

- In response to the tastes and needs of the audience, Toei Animation has exploited the
market and produced a large number of TV series, movies as well as anime adaptations of
many mangas by famous authors. Another language. It is this that has made the current
success and turned Toei Animation into a leading film production company in the world.
Part 2: Financial Statement
I. Balance Sheet
II. Income Statement
III. Cash Flows
Part 3: Financial Statement Analysis
I. Valuation Ratios
2015 2016 2017 2018 2019 2020 2021

1. Price to earnings (P/E)

From 2019 to 2020, during the Covid period, the company increased its operating productivity, so
the P/E ratio increased significantly when it increased from 18.06 to 43.79, showing the stock
 price compared to the company's earnings. was much higher, besides also showing a higher
dividend growth rate. However, in 2021, when activities slow down, the P/E ratio has decreased
from 43.79 to 32.44, showing that the share price relative to earnings and dividend growth rate
has decreased quite sharply. But compared to 2019, 2021 still has a growth in share price
compared to earnings and dividend growth rate.

2. Price to sales (P/S)

From 2019 to 2020, there has been strong growth in the P/S ratio: 3.77->9.39, showing that the
stock is being valued much higher thanks to the increase in the company's operating productivity.
By 2021, this index has declined but still maintains a much higher growth compared to 2019.

II. Profitability ratios

2015 2016 2017 2018 2019 2020 2021

1. Return on assets (ROA)

Compared to 2019, 2020 there has been a decline in ROA when it decreased from 12.53% to 11.09%.
In 2021, although there is a decrease, it still maintains a stable level when it only decreases by 0.06%
compared to 2020.

2. Return on equity (ROA)

The ROA index had a decline from December 16 to 13.85 in 2019-2020. By 2021, there will be a
gradual growth again from 13.85 to 14.15.

3. Return on invested capital (ROIC)

Return on invested capital 2020-2021 has decreased compared to 2019. But in general, the return on
invested capital remains at the average annual rate without any sudden changes outside of 2019.

4. Gross margin
In the 3 years from 2019-2021, the growth rate of the index is stable at an average increase of ~2%
per year.

III. Liquidity ratios

2015 2016 2017 2018 2019 2020 2021

1. Quick ratio\

The index is always > 1, indicating that the company is difficult to face problems when paying short
debts. Although in 2021, this index has decreased, but the index still remains at > 1, so the company
still does not have many problems when it comes to payments.

2. Current ratio
Similar to quick ratio, current ratio is >1 so the company doesn't have many problems. By 2021, there
has been a slight decrease but still at >1 so the company is still stable.

3. Inventory turnover

The company's ability to store sales is getting slower and slower when this index is steadily
decreasing at ~2 in 3 years from 2019 to 2021.