Toyota's Market Value Soars by $20.9 Billion Overnight, Plans to Double Return on Equity to 20%
On December 26th, local time, at the close of the US stock market, Toyota's stock price rose by 8.78%, and its market value increased by $20.9 billion overnight (approximately 152.63 billion yuan).
According to Nikkei Asia on Wednesday, Toyota is working to double its target for return on equity (ROE) to 20%. This is a bold move, thus attracting investor attention. Morgan Stanley analyst Shinji Kakiuchi said that if Toyota improves its value chain efficiency and finds new profit sources, this plan is feasible.
Return on equity (ROE) measures the efficiency of a company in generating income relative to its shareholders' equity. In other words, if the news is true, Toyota plans to make investors earn more money.
As previously reported, the data released by Toyota on Wednesday shows that despite strong demand in the US and Chinese markets, its global sales increased for the second consecutive month, but global production in November has declined for the tenth consecutive month.
The world's largest car manufacturer produced a total of 869,230 vehicles globally in November, a decrease of 6.2% compared to the same period last year, and the decline is larger than the 0.8% in October.
Nevertheless, Toyota's global sales increased for the second consecutive month, with an increase of 1.7%, reaching 920,569 vehicles, setting a new record for November sales.
