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JPY/USD rate changed 9% over the last 5 years, are you sure it explains 70% lower net income? You stated that they make 60% more money. If the point you are tr
by woobar 7y ago
JPY/USD rate changed 9% over the last 5 years, are you sure it explains 70% lower net income?
You stated that they make 60% more money. If the point you are trying to make is that they make 60% more than they expected, I won't argue with you.
- kenhwang 7y agoMass market automakers usually target ~7% margin, so a 9% change in exchange rate without adjustment in price would make an automaker flip from profitable to unprofitable (observable with Nissan as a real world example). It doesn't decrease their profit by 9%. Mazda raised their margin target to ~10% per vehicle, which is pretty standard for the premium segment. Which if they performed to expectations, would mean 40% more profit; they're slightly overperforming at ~60%.