International Journal of Science, Engineering and TechnologyAuthors: Dr. S Shankarii, KS Sri Maanasva
Abstract: This study provides a comprehensive financial analysis of Toyota Motor Corporation (TMC) for the fiscal years 2021 through 2025. The research focuses on evaluating the company’s profitability, liquidity, and solvency during a period marked by global supply chain disruptions and an industry-wide shift toward electrification. The purpose of this study is to analyze the financial performance of Toyota Motor Corporation, one of the world’s largest automobile manufacturers. The study focuses on examining key financial indicators such as profitability, liquidity, solvency, and efficiency ratios using publicly available financial statements.Utilizing data from consolidated financial statements, the paper employs ratio analysis to interpret TMC's performance. Findings indicate that while Toyota achieved record-breaking sales revenue of approximately ¥48 trillion by early 2025, operating income experienced a moderate contraction to ¥4.8 trillion due to aggressive investments in "future-pillar" technologies, including battery electric vehicles (BEVs) and software platforms. Toyota Motor Corporation has established itself as a dominant player in the automotive sector with a strong reputation for quality, innovation, and sustainability. Conclusions suggest that Toyota maintains a resilient balance sheet with a debt-to-equity ratio stabilizing around 1.05–1.08, positioning the firm to navigate the competitive landscape of 2026 and beyond.
