Nissan Motor Co Ltd - History, Corporate Organisation, and Products - Book Report/Review Example

Contents Table of Figures 5 Photo credit 5 List of Tables 6 Section Executive Summary SECTION 2: INTRODUCTION 2 2 Ethical Investment 2 2.2 Statement of Purpose 4 2.3 Criteria for selection 4 2.4 Scope of report 5 2.5 Research Methods 5 3. DISCUSSION 7 3.1 Financial criteria 7 3.2 Corporate Governance 8 3.3 Environmental Protection Factors 9 3.4 Contextual Factors 10 3.5 Comparison of Companies 11 3.5.1 Nissan Motor Co Ltd: History, corporate organisation and products 11 3.5.2 Rio Tinto Limited: History, corporate organisation and products 11 3.2.3 Vestas Wind Systems As: History, corporate organisation and products 12 3.6. Comparison of Financial Performance 13 3.6.1 Financial Performance of Nissan 13 3.6.5 Comparison on the basis corporate governance 14 3.6.6 Comparison on the basis of Environmental protection credentials 15 3.6.7 Comparison on the basis of contextual factors 15 Section 4: Conclusion and Recommendation 17 4.1 Conclusion 17 4.2 Limitations of the study 17 4.1 Recommendation 17 5. Reference List 18 Appendix 1 20 Wright Quality Ratings 20  Appendix 2 20 Nissan Motor Co Ltd Key Data 20 Appendix 3 22 Rio Tinto Ltd Key Data 22 Appendix 4 23 Vestas Ltd Key Data 23 Table of Figures Figure 1: Positive and negative selection criteria adopted by Friends Provident to choose funds. This figure explains the positive and negative criteria employed by Friends Provident Stewardship to choose ethical investments for their mutual fund. 2 Figure 2: Principles of environmental protection. 9 Figure 3: Price, earnings, and dividends per share of Nissan Motor Co Ltd. since 2005 13 Figure 4: Price, earnings and dividends of Rio Tinto Limited since 2005 13 Figure 5: Price, earnings and dividends of Rio Tinto Limited since 2005 13 Photo credit Cover page photo: http://www.apartmentpilot.com/images/intro.pics/PlantSmall.jpg List of Tables Table 1: Sub-criteria employed to compare financial performance of the companies under study. 13 Table 2: Sub-criteria employed for comparing corporate governance between companies. 14 Table 3: Pollution management factors 16 Table 4: Comparison Write quality rating for Nissan, Rio Tinto and Vestas 20 Table 5: Comparison of environmental protection credentials between Nissan, Rio Tinto and Vestas 21 Table 6: Comparison Write quality rating for Nissan, Rio Tinto and Vestas 22 Table 7: Key corporate data pertaining to Nissan Motor Co Ltd 27 Table 8: Rio Tinto Limited Key Data 28 Table 9: Vestas Wind Systems AS Key Data 29 The study was undertaken to identify the most suitable company of the three companies namely Nissan, Rio Tinto and Vestas for long term investment of $100,000. Accordingly four main criteria were considered for making ethical investments which included (1) financial performance, (2) corporate governance, (3) environmental protection credentials and (4) contextual factors. Accordingly a detailed study was undertaken to review the literatures on the subject and the research methods being employed for this purpose. Careful study was made to establish the comparison variables on the basis of which the three companies were evaluated. The results indicated that Vestas scored the highest with the most desirable credentials and was identified as the company in which long term investment may be made. SECTION 2: INTRODUCTION 2.1 Ethical Investment Ethical Investment Research Service (EIRIS) defines ethical investment as “choosing investments that reflect your values” (The Ethical Investment Research Service, 2003). Friends Provident Stewardship, which was the first ethical fund, launched in 1984 identifies a combination of positive and negative criteria for selection of the investments. According to Friends Provident Stewardship, while employing the positive criteria to choose funds, the fund managers sought to invest in companies having products and services that contribute to the “long-term benefit to the community they operate and /or contribute towards betterment of the environment” (The Ethical Investment Research Service, 2003) and used the negative criteria to avoid investments in certain companies. These are placed at the figure below: Figure 1: Positive and negative selection criteria adopted by Friends Provident to choose funds. This figure explains the positive and negative criteria employed by Friends Provident Stewardship to choose ethical investments for their mutual fund. This EISRI definition is somewhat consistent with msn Encarta definition of ethical investment, which states that ethical investment is “investing with conscience” i.e. “investment in companies with socially desirable characteristics such as fair employment practices or environmentally sound operational practices” (encarta.msn.com/dictionary, 2009). On the other hand, the Financial Times Lexicon defines ethical investment as “an investment in an activity that the investor considers is morally acceptable, or these investments considered together (Financial Times Lexicon, 2009). Therefore, though the definition of ethical investment has been variously described, yet there appears to be by and large consistency in that it has to be acceptable to the conscious of the society that considers certain business proposition as ethical. Beal et al. (2005) in their study “why do we invest ethically” observes that financial returns, non-wealth returns, and social change, the three potential motives for ethical investment are neither exhaustive nor exclusive (Beal et al., 2005). The authors argue that the behaviour of all ethical investors cannot be explained by any one single motive. For some investors, there may be a trade-off between financial and psychic returns. According to the authors, “the trade-off for consumption-investors is expected to be close to zero (total utility is maximised at low levels of ethical investment in the fun of participation model) and is expected to vary with the ethical intensity is included in the investor’s utility function” (Beal et al., 2005, p.1). The authors explain psychic return as increase in happiness, which is an approach that prompts further empirical studies for improving the understanding of why people invest ethically. In the same year, Bauer et al. (2005) in their study on “International evidence on ethical mutual fund performance and investment style” comprising of 103 German, UK and US ethical mutual funds over the period of 1990 and 2001 observed that there was no evidence of significant differences in risk adjusted returns between ethical and conventional funds. Further, results of their suggested that the ethical mutual funds went through a catching up phase prior to delivering returns similar to those of conventional mutual funds (Rob Bauer, 2005). 2.2 Statement of Purpose The purpose of this study is to undertake research into three companies Nissan, Rio Tinto and Vestas and recommend a single company for a long-term investment of $100,000. 2.3 Criteria for selection The single company out of the three will be chosen using multiple, potentially conflicting criteria such as financial performance (FP) and social performance (SP). As Beal et al. (2005) suggested in his paper “why do we invest ethically”, “the trade-off for consumption-investors is expected to be close to zero and is expected to vary with the ethical intensity is included in the investor’s utility function” (Beal et al., 2005, p.1), in the present study, financial performance will only be given only 25 percent weightage, the other 75 percent weightage will be given to corporate governance performance, environmental protection credentials and contextual factors such as legal/political issues, global or regional economic pressures, in equal proportion. 2.4 Scope of report The scope of the report will be limited to undertaking research into the three pre-assigned companies Nissan, Rio Tinto and Vestas and recommending a single company for long term investment. Since, the objective of this study is to identify the most ethical company (out of the three), the report is also limited to study of the four selection criteria such as (1) financial performance, (2) corporate governance, (3) environmental protection factors, and (4) contextual elements. 2.5 Research Methods Due to resource limitations, it was not possible to undertaken primary research efforts to the company such as personal visits to the company for observing evidences of social performance practices, which is an important element of the study. Similarly, due to the above limitations, it has also neither been possible to undertake executive interviews, nor administration of a survey questionnaire to the stakeholders of the companies. Both these methods are considered to be excellent sources of information for obtaining evidence of social priorities of the companies under investigation. However, a thorough secondary study i.e. pre-existing data and information was undertaken. The data on various criteria of the study such as business performance, corporate government practices, environmental friendly practices and such other practices termed as socially acceptable have been obtained from three sources. These are firstly through a library (desk) research on the gambit of social and financial performance criteria, which largely constituted the review of literatures required for generating understanding on current practices and trends. Secondly, they were gathered through the company sources and publications and thirdly, through internet sources. Based on the findings of these investigations, conclusions were drawn and a set of recommendations were made. These have been appended in the subsequent sections. 3. DISCUSSION A critical analysis of the three companies Nissan, Rio Tinto and Vestas were conducted based on the chosen criteria such as (1) financial performance, (2) corporate governance, (3) environmental protection factors and (4) contextual elements. The detailed sub-criteria employed under each of these criteria to perform the comparison are discussed below. Subsequently, the findings of these comparisons are discussed in the following paragraphs. 3.1 Financial criteria Initially it was intended to use the parameters for financial analysis for each of the three chose companies to be in the lines of the “Financial Spread Sheet Analysis” employed by Jim Collins in his study for his book Good to Great and comprised of the following variables: Table 1: Sub-criteria employed to compare financial performance of the companies under study. Sl. No. Sub-criteria 1. Total sales 2. Sales growth 3. Profit growth 4. Profit margin 5. Return on sales 6. Sales per employee 7. Profit per employee 8. PP&E (property, plant and equipment) 9. Dividend pay-out 10. Selling, general, and administrative expenses as a percent of sales 11. Research and development as a percent of sales 12. Collection period in days 13. Inventory turnover ratio 14. Return on equity 15. Ratio of debt to equity 16. Ratio of long-term debt to equity 17. Interest expenses as a percent of sales 18. High stock price to earnings per share 19. Low stock price to earnings per share 20. Average stock price to earnings per share Source: Collins, J., 2001. Good to Great. 1st ed. New York: Harper Collins Publishers Inc. p.238. However, due to difficulty in gathering the data, data and information supplied by corportateinformation.com duly verified from the authentic websites of the respective companies was adopted. To invest in a long term basis, it was important to start from the company history and proceed gradually through the company’s history. However, emphasis was given on the last five years was given. Write Quality Rating was obtained for all the three companies and were compared on the basis of four sub-criteria such as: (1) liquidity, (2) financial strength, (3) profitability, (4) growth. The detailed explanation of the Write quality rating is placed at Appendix 1. 3.2 Corporate Governance The key parameters for comparing corporate governance of the three companies were based on the seven sub-criteria suggested by Davis1 (2003). Davis argued that corporate governance is “managing business risks” and may include the following: Table 2: Sub-criteria employed for comparing corporate governance between companies. Sl. Number Sub-criteria 1. Governance strategy 2. Risk management policy 3. Ownership structure 4. Composition of board and its accountability 5. Compensation policy 6. Investor rights 7. Transparency in financial reporting Source: Business Line, 2003. Key parameters to judge corporate governance. [Online] (Internet Edition) Available at: http://www.thehindubusinessline.com/2003/06/28/stories/2003062801420400.htm [Accessed 02 October 2010]. 3.3 Environmental Protection Factors As per the Environmental Protection Authority, Government of Western Australia, principles of environmental protection comprise of the five objectives embedded as principles as depicted in the figure below: Figure 2: Principles of environmental protection. Source: Environmental Protection Authority, 2009. Guide to EIA Environmental Principles, Factors and Objectives. [Online] Available at: http://www.epa.wa.gov.au/docs/1920_6%20EIA%20Guide%20Env%20Principles-Factors-Objectives_1-11-04.pdf [Accessed 02 October 2010] (p.2). In addition, there are other factors such as pollution management and social surrounding factors. The pollution management factors may comprise of such sub-sub-criteria as: 1. Air quality 2. Water quality (surface marine or ground) 3. Soil 4. Noise 5. Radiation 6. Light 7. Greenhouse gases Table 3: Pollution management factors POLLUTION MANAGEMENT Factor Objective Air Quality To ensure that emissions do not adversely affect environment values or the health, welfare and amenity of people and land uses Water Quality (surface, marine or ground) To ensure that emissions do not adversely affect environment values or the health, welfare and amenity of people and land uses Soil Quality To ensure that rehabilitation achieves an acceptable standard compatible with the intended land use, and consistent with appropriate criteria Noise To protect the amenity of nearby residents from noise impacts resulting from activities associated with the proposal by ensuring the noise levels meet statutory requirements and acceptable standards. Radiation To ensure that radiological impacts to the public and the environment are kept as low as reasonably achievable and comply with acceptable standards. Light To avoid or manage potential impacts from light overspill and comply with acceptable standards. Greenhouse gases To minimise emissions to levels as low as practicable on an on-going basis and consider offsets to further reduce cumulative emissions. Source: Environmental Protection Authority, 2009. Guide to EIA Environmental Principles, Factors and Objectives. [Online] Available at: http://www.epa.wa.gov.au/docs/1920_6%20EIA%20Guide%20Env%20Principles-Factors-Objectives_1-11-04.pdf [Accessed 02 October 2010] (p.2-3). The environmental protection factors were compared on the basis of these factors. 3.4 Contextual Factors The contextual factors comprised of four factors as (1) legal, (2) political, (3) global and (4) regional economic pressure. 3.5 Comparison of Companies 3.5.1 Nissan Motor Co Ltd: History, corporate organisation and products Nissan Motor Co. Ltd a Japan-based established in 1939 engaged in manufacturing of automobiles. The company has two business segments as: 1. The automobile segment – responsible for planning, development, manufacture and sale of passenger vehicles, trucks, buses, marine vehicles, forklifts and related parts. This division is also responsible for import & export and transportation of vehicles to overseas markets. 2. The Sale and Finance segment – responsible for providing credit card and leasing services. This segment is also responsible for non-life insurance services. In addition to these two the company is also undertaking car leasing business and leasing and management of real estate properties. At the end of the first quarter of the year (31 March 2010), the company had 204 consolidated subsidiaries and 19 associated companies in japan and abroad. The company has about 157,624 employees (corporateinformation.com, 2010). Key corporate data of Nissan Motor Co Ltd is placed at Appendix 2. 3.5.2 Rio Tinto Limited: History, corporate organisation and products According to the company, Rio Tinto is a combination of two companies (1) Rio Tinto plc (based in the UK), and (2) Rio Tinto Limited (based in Australia). “In the year 1873, the British based company was formed by investors to mine ancient copper workings at Rio Tinto near Huelva in southern Spain. The Consolidated Zinc Corporation was incorporated in 1905 to treat zinc bearing mine waste at Broken Hill, New South Wales, Australia” (riotinto.com, 2010). The present research pertains to Rio Tinto Limited based in Australia. The company does operate in metal and mineral production and its business units are based on product group such as the aluminium group and the copper group. While, the Aluminium group deals with mining of bauxite, refining of alumina to cater both primary aluminium production and speciality alumina markets, the Copper group on the other hand produces copper, along with valued by-products of gold and molybdenum. The operations and projects of the Copper group are located in North and South America, Africa, Asia and Australia. In addition, “the Diamond and Minerals group produces diamonds, borate, titanium dioxide feedstock, talk high purity iron, metal powders, zircon and rutile. The Energy group supplies thermal and coking coal to the Asian seaborne market, as well as supplies uranium oxide to electric power utilities worldwide. The Iron Ore supplies seaborne iron ore trade and produces direct saleable lump and fines ore, pellets and concentrates” (corporateinformation.com, 2010). The company has 105,785 employees. Other key corporate data of Rio Tinto Limited is placed at Appendix 3. 3.2.3 Vestas Wind Systems As: History, corporate organisation and products This is a Denmark based company founded by H.S. Hansen in the year 1898. In the small town of Lem in Denmark, Hansen and his son Peder were engaged in manufacturing of steel windows for industrial buildings (vestas.com, 2010). Today Vestas Wind Systems A/S is engaged in development, manufacture, sale, marketing and maintenance of wind power systems. Vestas wind systems use wind energy for generating electricity and produces products ranging from land and offshore wind turbines capable of producing electricity from 850 kilowatts to 3 megawatts. It also produces supervisory control and data acquisition (SCADA) products and supplies to cater the requirements of a range of monitoring and control function, which enables remote supervision of wind power plants (corporateinformation.com, 2010). The company has a global network of subsidiaries. The company has 20,730 employees. Other key corporate data of Rio Tinto Limited is placed at Appendix 4. 3.6. Comparison of Financial Performance 3.6.1 Financial Performance of Nissan Write quality rating for Nissan Motors is ACC4. The details of price, earnings, and dividends per share are placed in the figure below: Figure 3: Price, earnings, and dividends per share of Nissan Motor Co Ltd. since 2005 Source URL: http://www.corporateinformation.com/ImageSvr/Chart.ashx?T=SS&C=C39290190 3.6.2 Financial Performance of Rio Tinto Limited Wright Quality Rating: ABA1. The details of price, earnings, and dividends per share are placed in the figure below: Figure 4: Price, earnings and dividends of Rio Tinto Limited since 2005 Source URL: http://www.corporateinformation.com/ImageSvr/Chart.ashx?T=SS&C=C03680430 3.6.3 Financial performance of Vestas Ltd. Wright Quality Rating: ABB1. The details of price, earnings, and dividends per share are placed in the figure below: Figure 5: Price, earnings and dividends of Rio Tinto Limited since 2005 Source URL: http://www.corporateinformation.com/ImageSvr/Chart.ashx?T=SS&C=C208B6190 3.6.4 Comparison on the basis of liquidity, financial strength, profit and growth Write quality rating for the three comparison companies are placed at the table below: Table 4: Comparison Write quality rating for Nissan, Rio Tinto and Vestas2 Factor Nissan Rio Tinto Vestas Liquidity A A A Financial strength C B B Profit C A B Growth 4 1 1 From the foregoing it is evident that while all the three companies have outstanding liquidity, financial strength and profit of Nissan is good, whereas both Rio Tinto and Vestas enjoy excellent financial strength. However, Rio Tinto is more profitable than Vestas at the moment, the former being outstandingly profitable, whereas Vestas has only excellent profit record. On the other hand, growth of Nissan has better rating than both Rio Tinto and Vestas. Another important point to be noted is that Nissan is still making loss and has just trying to recover from a financial crisis (corporateinformation.com, 2010). 3.6.5 Comparison on the basis corporate governance A thorough review of the prospectus of all the three companies revealed that all the three companies are established companies and have excellent corporate governance track record. Hence, there was not much discernible difference between the companies on the basis of corporate governance. 3.6.6 Comparison on the basis of Environmental protection credentials The three subject companies were compared on the basis of the seven factors suggested by Environmental Protection Authority (Australia) discussed earlier. Three rankings were provided as H= high, M=medium and L=low depending on the basis of the quantity of involvement for protection of the environmental pollution. Alternatively, if a company by means of its operations or products causes strain it will have the ratings in the reverse order. A fourth category NA was established if the product or operation does not affect the factor. Accordingly, the comparison table was prepared and placed below. Table 5: Comparison of environmental protection credentials between Nissan, Rio Tinto and Vestas No. Factor Nissan Rio Tinto Vestas 1. Air quality M M H 2. Water quality (surface marine or ground) M L NA 3. Soil L L H 4. Noise M M H 5. Radiation NA NA NA 6. Light NA NA NA 7. Greenhouse gases M NA H From the table above, it was evident that Vestas has the highest desirable credentials amongst all the three companies. 3.6.7 Comparison on the basis of contextual factors The three subject companies were compared for contextual credentials on the basis of the four factors as discussed earlier. Three rankings were provided as A= high pressure, B=medium and L=low pressure depending on the basis of the quantity of involvement of the company. A fourth category NA was established if the product or operation does not affect the factor. Accordingly, the comparison table was prepared and placed below. Table 6: Comparison Write quality rating for Nissan, Rio Tinto and Vestas3 Factor Nissan Rio Tinto Vestas Legal pressure C A NA Political pressure B B NA Global economic pressure A A NA Regional economic pressure A B NA The comparison revealed that Vestas enjoyed the least pressure on account of contextual factors. From the above discussion, it was observed that Vestas should be chosen on for long term investment. Section 4: Conclusion and Recommendation 4.1 Conclusion The study was undertaken to identify the most suitable company of the three companies namely Nissan, Rio Tinto and Vestas for long term investment of $100,000. Accordingly four main criteria were considered for making ethical investments which included (1) financial performance, (2) corporate governance, (3) environmental protection credentials and (4) contextual factors. Accordingly a detailed study was undertaken to review the literatures on the subject and the research methods being employed for this purpose. Careful study was made to establish the comparison variables on the basis of which the three companies were evaluated. The results indicated that Vestas scored the highest with the most desirable credentials and was identified as the company in which long term investment may be made. 4.2 Limitations of the study The most important limitation of the study is that it has been entirely depended on secondary research. Ground truthing and primary research is undoubtedly an important contributor for success before large sums are invested. 4.1 Recommendation It is recommended that adequate primary research may be carried out in the form of visitations to company sites, interview with the staff and executives and if possible a questionnaire can reveal latent positive and negative aspects of the company. 5. Reference List 8. Bauer, R., Derwall, J. & Otten, R., 2007. The Ethical Mutual Fund Performance Debate: New Evidence from Canada. Journal of Business Ethics, 70(2), p.111–124. 9. Bauer, R., Koedijk, K. & Otten, R., 2005. International evidence on ethical mutual fund performance and investment style. Journal of Banking & Finance, 29(7), pp.1751-67. 10. Beal, D.J., Goyen, M. & Philips, P., 2005. Why Do We Invest Ethically? Journal of Investing, 14(3), pp.66-78. 11. Business Line, 2003. Key parameters to judge corporate governance. [Online] (Internet Edition) Available at: http://www.thehindubusinessline.com/2003/06/28/stories/2003062801420400.htm [Accessed 02 October 2010]. 12. Charles Piller; Edmund Sanders; Robyn Dixon - Times Staff Writers, 2007. Dark cloud over good works of Gates Foundation. [Online] Available at: http://vap-ripoff.org/Dark%20cloud%20over%20good%20works%20of%20Gates%20Foundation%20-%20Los%20Angeles%20Times.pdf [Accessed 03 October 2010]. 13. Collins, J., 2001. Good to Great. 1st ed. New York: Harper Collins Publishers Inc. 14. Collins, J. & Porras, J.I., 2005. Built to Last: Succeful Habits of Visonary Companies. Tenth Anniversary Edition ed. London: Random House Business Books. 15. corporateinformation.com, 2010. Rio Tinto Limited Company Snapshot. [Online] Available at: http://www.corporateinformation.com/Company-Snapshot.aspx?cusip=C03680430 [Accessed 02 October 2010]. 16. corporateinformation.com, 2010. Vestas Wind Systems AS Company Snapshot. [Online] Available at: http://www.corporateinformation.com/Company-Snapshot.aspx?cusip=C208B6190 [Accessed 02 October 2010]. 17. encarta.msn.com/dictionary, 2009. Definition - ethical investment. [Online] Available at: http://encarta.msn.com/dictionary_561546990/ethical_investment.html [Accessed 01 October 2010]. 18. Environmental Protection Authority, 2009. Guide to EIA Environmental Principles, Factors and Objectives. [Online] Available at: http://www.epa.wa.gov.au/docs/1920_6%20EIA%20Guide%20Env%20Principles-Factors-Objectives_1-11-04.pdf [Accessed 02 October 2010]. 19. Financial Times Lexicon, 2009. Ethical investment. [Online] Available at: http://lexicon.ft.com/term.asp?t=ethical-investment [Accessed 01 October 2010]. 20. Maria Ceu Cortez, F.S.N.A., 2008. The Performance of European Socially Responsible Funds. Journal of Busines Ethics, 87(4), pp.573-88. 21. riotinto.com, 2010. Company history. [Online] Available at: http://www.riotinto.com/shareholders/12312_company_history.asp [Accessed 02 October 2010]. 22. Rob Bauer, K.K.R.O., 2005. International evidence on ethical mutual fund performance and investment style. Journal of Banking & Finance, 29(7), pp.1751-67. 23. SEBI, 2003. Report of the SEBI Committee on Corporate Governance. [Online] Security and Exchanges Board of India Available at: http://www.sebi.gov.in/commreport/corpgov.pdf [Accessed 02 October 2010]. 24. Tarawneh, M., 2006. A Comparison of Financial Performance in the Banking Sector: Some Evidence from Omani Commercial Banks. International Research Journal of Finance and Economics, (3), pp.101 - 112. 25. The Ethical Investment Research Service, 2003. What is Ethical Investment? [Online] Available at: http://www.gaeia.co.uk/Scotland/GAEIA03.HTM [Accessed 01 October 2010]. 26. United Nations Conference on Trade and Development, 2006. Guidance on Good Practices on Corporate Governance Disclosure. United Nations Publications. Geneva: UNCTD United Nations Conference on Trade and Development. 27. vestas.com, 2010. Vestas brief history. [Online] Available at: http://www.vestas.com/en/about-vestas/profile/vestas-brief-history.aspx [Accessed 02 October 2010]. Appendix 1 Wright Quality Ratings Since 1970, Wright Investors Service has rated all of the companies in its database (when there is sufficient information available). The Wright Quality Rating, measures the overall investment quality of a company. Wright Quality Ratings are based on numerous individual measures of quality, grouped into four principal components: (1) Investment Acceptance (i.e. stock liquidity), (2) Financial Strength, (3) Profitability & Stability, and (4) Growth. The ratings are based on established principles using 5-6 years of corporate record and other investment data. The ratings consist of three letters and a number. Each letter reflects a composite qualitative measurement of numerous individual standards which may be summarized as follows: A = Outstanding; B = Excellent; C = Good; D = Fair; L = Limited; N = Not Rated. The number component of the Quality Rating is also a composite measurement of the annual corporate growth based on earnings and modified by growth rates of equity, dividends, and sales per common share. The Growth rating may vary from 0 (lowest) to 20 (highest). See sample Quality Rating below.) The highest quality rating assigned by Wright is AAA20. This rating would be assigned to a company that has a large and broad base of shareholders, an outstanding balance sheet and strong and stable profitability. The company would also have experienced superior growth over the past several years. The Wright Quality Rating assigned to a company also takes into consideration country and industry variations. If there is not sufficient information available, the quality rating will not be assigned or an “N” (not-rated) will be applied for that particular quality criteria.  Source:  Appendix 2 Nissan Motor Co Ltd Key Data Current Price (9/24/2010): 698.00 (Figures in Japanese Yen) Table 7: Key corporate data pertaining to Nissan Motor Co Ltd Source: Appendix 3 Rio Tinto Ltd Key Data Current Price (9/24/2010): 75.60 (Figures in Australian Dollars) Table 8: Rio Tinto Limited Key Data Appendix 4 Vestas Ltd Key Data Current Price (9/24/2010): 210.00 (Figures in Danish Kroner)   Table 9: Vestas Wind Systems AS Key Data Read More