GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Toyota Motor Corp (BSP:TMCO34) » Definitions » Financial Strength

Toyota Motor (BSP:TMCO34) Financial Strength : 7 (As of Dec. 2023)


View and export this data going back to 2019. Start your Free Trial

What is Toyota Motor Financial Strength?

Toyota Motor has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Toyota Motor's Interest Coverage for the quarter that ended in Dec. 2023 was 48.79. Toyota Motor's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.71. As of today, Toyota Motor's Altman Z-Score is 1.92.


Competitive Comparison of Toyota Motor's Financial Strength

For the Auto Manufacturers subindustry, Toyota Motor's Financial Strength, along with its competitors' market caps and Financial Strength 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's Financial Strength Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where Toyota Motor's Financial Strength falls into.



Toyota Motor Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Toyota Motor's Interest Expense for the months ended in Dec. 2023 was R$-1,172 Mil. Its Operating Income for the months ended in Dec. 2023 was R$57,204 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was R$655,303 Mil.

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

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*57203.769/-1172.428
=48.79

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Toyota Motor's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(500378.678 + 655302.662) / 1639071.588
=0.71

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Toyota Motor has a Z-score of 1.92, indicating it is in Grey Zones. This implies that Toyota Motor is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.92 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Toyota Motor  (BSP:TMCO34) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Toyota Motor has the Financial Strength Rank of 7.


Toyota Motor Financial Strength Related Terms

Thank you for viewing the detailed overview of Toyota Motor's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Toyota Motor (BSP:TMCO34) Business Description

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

Toyota Motor (BSP:TMCO34) Headlines

No Headlines