Toyota Motor (Toyota Motor) Interest Coverage

: 48.79 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Toyota Motor's Operating Income for the three months ended in Dec. 2023 was $11,675 Mil. Toyota Motor's Interest Expense for the three months ended in Dec. 2023 was $-239 Mil. Toyota Motor's interest coverage for the quarter that ended in Dec. 2023 was 48.79. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Toyota Motor's Interest Coverage or its related term are showing as below:

TM' s Interest Coverage Range Over the Past 10 Years
Min: 51.81 Med: 83.81 Max: 273.51
Current: 273.51

TM's Interest Coverage is ranked better than
93.9% of 1032 companies
in the Vehicles & Parts industry
Industry Median: 7.53 vs TM: 273.51

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Toyota Motor Interest Coverage Historical Data

The historical data trend for Toyota Motor's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Toyota Motor Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

87.88

54.39

51.81

92.29

57.54

Toyota Motor Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																25.20	-	48.03	68.62	48.79

Competitive Comparison

For the Auto Manufacturers subindustry, Toyota Motor's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Toyota Motor Interest Coverage Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Toyota Motor's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Toyota Motor's Interest Coverage falls into.

Toyota Motor Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Toyota Motor's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Toyota Motor's Interest Expense was $-354 Mil. Its Operating Income was $20,387 Mil. And its Long-Term Debt & Capital Lease Obligation was $127,743 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	20387.089	/	-354.291
	=	57.54

Toyota Motor's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Toyota Motor's Interest Expense was $-239 Mil. Its Operating Income was $11,675 Mil. And its Long-Term Debt & Capital Lease Obligation was $133,741 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	11674.715	/	-239.281
	=	48.79

The higher the ratio, the stronger the company's Financial Strength is.

Toyota Motor (NYSE:TM) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Toyota Motor Interest Coverage Related Terms

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Toyota Motor (Toyota Motor) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Toyota Motor Corp (NYSE:TM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TOYOF:USA TMN:Mexico 7203:Japan 7203:Japan TYT:UK TOM:Germany TOM:Germany TOMA:Germany TOM:Germany TMCO34:Brazil TOM:Austria TM:Argentina

Address

1 Toyota-cho, Aichi Prefecture, Toyota, JPN, 471-8571

Website

https://www.global.toyota

Founded in 1937, Toyota is one of the world's largest automakers with 10.56 million units sold at retail in fiscal 2023 across its light vehicle brands. Brands include Toyota, Lexus, Daihatsu, and truck maker Hino; market share in Japan is about 51% excluding mini-vehicles, while U.S. share is around 15%. The firm also owns 3.3% of Denso, a parts supplier, about 20% of Subaru, and holds investments in many other firms, including shares of Uber Technologies, Joby Aviation, Aurora Innovation, Isuzu Motors, and about 5% in each of Mazda and Suzuki. Fiscal 2023 sales excluding financial services were JPY 34.4 trillion. Toyota also has a financing arm and manufactures homes and boats.