Toyota MotorTM -0.75%81 Current Ratio is 1.27 as of Mar. 2026, which is 18% above its 10-year median of 1.08. GuruFocus rates TM with a GF Score™ of 81/100 and a GF Value™ of $220.43 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,337 Vehicles & Parts companies, Toyota Motor ranks worse than 64.1% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Toyota Motor's current ratio for the quarter that ended in Mar. 2026 was 1.27.
Toyota Motor has a current ratio of 1.27. It generally indicates good short-term financial strength.
The historical rank and industry rank for Toyota Motor's Current Ratio or its related term are showing as below:
TM'
s Current Ratio Range Over the Past 10 Years
Min: 1.02 Med: 1.08 Max: 1.27
Current: 1.27
During the past 13 years, Toyota Motor's highest Current Ratio was 1.27. The lowest was 1.02. And the median was 1.08.
TM's Current Ratio is ranked worse than 64.1% of 1337
companies
in the Vehicles & Parts industry
Industry Median: 1.54
vs TM: 1.27
Toyota Motor (NYSE:TM) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Toyota Motor Current Ratio Related Terms
Toyota Motor Current Ratio Historical Data
* Premium members only.
The historical data trend for Toyota Motor's Current Ratio 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.
For the Auto Manufacturers subindustry, Toyota Motor's Current Ratio, along with its competitors' market caps and Current Ratio 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 Current Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Toyota Motor's Current Ratio distribution charts can be found below:
* The bar in red indicates where Toyota Motor's Current Ratio falls into.
* 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 (TM) has a Current Ratio of 1.27 as of Mar. 2026. This is 18% above median its historical median of 1.08. Over the past decade, Toyota Motor's Current Ratio has ranged from 1.02 to 1.27. According to the industry distribution chart, Toyota Motor ranks #857 out of 1337 companies in the Vehicles & Parts industry, placing it in the top 64.1%.
Is Toyota Motor's Current Ratio too high?
Toyota Motor's current Current Ratio of 1.27 is 18% above median its 10-year median of 1.08. Over the past 10 years, this metric has ranged from a low of 1.02 to a high of 1.27. The Vehicles & Parts industry median Current Ratio is 1.54. Toyota Motor's value of 1.27 is 17.5% below this industry median. Based on the distribution chart, Toyota Motor ranks #857 out of 1337 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Toyota Motor has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Toyota Motor's Current Ratio compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Toyota Motor ranks #857 out of 1337 companies for Current Ratio. This places Toyota Motor in the lower half of its industry. The industry median Current Ratio is 1.54. Toyota Motor's value of 1.27 is 17.5% below this benchmark. Historically, Toyota Motor's own Current Ratio has ranged from 1.02 to 1.27 over the past decade. While the company's 10-year median is 1.08 vs. the industry median of 1.54, Toyota Motor has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Vehicles & Parts company?
The median Current Ratio among Vehicles & Parts companies is 1.54, based on 1,337 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Toyota Motor's current Current Ratio of 1.27 is 17.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Vehicles & Parts industry, the median Current Ratio is 1.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toyota Motor's current Current Ratio is 1.27, which is 18% above median its own 10-year median of 1.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toyota Motor stock overvalued right now?
Based on GuruFocus' analysis, Toyota Motor (TM) is currently considered Modestly Undervalued. The stock's GF Value™ is $220.43, compared to a current price of $166.50 — trading 24.5% below its estimated fair value. The current Current Ratio is 1.27, which is 18% above median its 10-year median of 1.08 and 17.5% below the Vehicles & Parts industry median of 1.54. Toyota Motor's overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Toyota Motor (TM), the current Current Ratio is 1.27 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Toyota Motor (TM) Overvalued in 2026?
Based on GuruFocus' analysis, Toyota Motor stock appears to be undervalued.
The current stock price of $166.50 is trading 24.5% below its estimated GF Value™ of $220.43.
GuruFocus considers Toyota Motor to be Modestly Undervalued.
Key valuation signals for TM:
Current Ratio: 1.27 (18% above median its 10-year median of 1.08)
GF Value™: $220.43 vs. price of $166.50 (24.5% below fair value)
Industry Position: 17.5% below the Vehicles & Parts median (#857 of 1337)
No single metric tells the full story. See the TM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1937, Toyota is one of the world's largest automakers, with 11.3 million units sold at retail in fiscal 2026, including 10.5 million across the Toyota and Lexus brands. Brands include Toyota, Lexus, Daihatsu, and truck maker Hino; market share in Japan is about 50% excluding mini-vehicles, while US share is around 14%. The firm also owns stakes in 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 2026 sales excluding financial services were JPY 46.1 trillion. Toyota also has a financing arm and manufactures homes and boats.
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