SEOUL, KOREA - Toyota saw its operating profit-to-sales ratio jump 9.4 percent last year from 4.8 percent a year ago, approaching close to the 9.5-percent level recorded by Hyundai Motor last year.
Backed by the weak yen, Toyota succeeded in improving its sales and profitability alike. In contrast, Hyundai Motor, which posted a 10-percent-plus operating profit-to-sales ratio in 2011 and 2012, slipped into a single-digit figure last year.
In terms of operating profit-to-sales ratio, Hyundai Motor ranked No. 2 among major car makers, right behind BMW, but chased closely by Toyota.
Hyundai Motor’s operating profit-to-sales ratio (9.5%) is far higher than Volkswagen’s 6.0 percent and GM’s 3.6 percent. If combined with its affiliate Kia Motors, the ratio slipped further to 8.5 percent last year from 9.1 percent in 2012.
Some industry experts said, “Hyundai Motor maintains a relatively high operating profit-to-sales ratio. The problem, however, is that its ratio fell for two straight years that could ignite concerns about its profitability.”
