We are committed to enhancing our product offerings, particularly in hybrid and electric vehicles, as these represent the future of the automotive industry.
— Akio Toyoda, President
03Detailed Report
TM
Toyota Motor Corporation
Period
Q1 2025
CurrencyJPY
Report TypeQuarterly Earnings
GeneratedJun 10, 2026
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Executive Summary
In Q1 2025, Toyota Motor Corporation (TM) showcased robust financial performance, reporting a revenue of ¥12.03 trillion, representing a 12.24% increase year-over-year. The company's net income also saw an impressive rise to ¥1.33 trillion, up 1.68% compared to the previous year, while its earnings per share (EPS) rose to ¥98.99, up 2.33% on a year-over-year basis. This growth reflects Toyota's successful strategy in expanding its hybrid and electric vehicle offerings despite ongoing macroeconomic challenges such as supply chain disruptions.
Toyota’s operating income surged by 16.73% year-over-year to ¥1.31 trillion, indicating strong cost management and operational efficiency. The company's gross profit margin maintained stability at 20.5%, driven by a favorable product mix and rigorous cost controls. Management highlighted ongoing investments in new technologies and markets as essential for sustaining future growth, aligning with global trends towards sustainability and digital transformation in the automotive sector.
Toyota's solid revenue growth and profitability improvements indicate a positive trend for the company, fueled by strategic investments into R&D, particularly in hybrid and electric vehicles.
### Balance Sheet Highlights
- Total Assets: ¥94.04 trillion
- Total Liabilities: ¥57.26 trillion
- Total Stockholders' Equity: ¥35.74 trillion
- Current Ratio: 1.18
- Debt to Equity Ratio: 1.09
The strength of Toyota’s balance sheet, marked by a current ratio above 1, highlights its adequate liquidity to cover short-term obligations, although its debt level remains considerable relative to equity.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
11,837.88B
12.24%
6.91%
Gross Profit
2,428.45B
17.72%
7.92%
Operating Income
1,308.46B
16.73%
17.59%
Net Income
1,333.35B
1.68%
33.64%
EPS
98.99
2.33%
33.73%
Key Financial Ratios
Gross Profit Margin
Fair
20.50%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
11.10%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Good
11.30%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.42%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.73%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.18
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
1.09
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
8.29x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.24x
Price-to-book ratio reasonable for profitable companies
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