Toyota Motor (Toyota Motor) Gross Margin %

: 22.30% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Toyota Motor's Gross Profit for the three months ended in Dec. 2023 was $18,650 Mil. Toyota Motor's Revenue for the three months ended in Dec. 2023 was $83,630 Mil. Therefore, Toyota Motor's Gross Margin % for the quarter that ended in Dec. 2023 was 22.30%.

The historical rank and industry rank for Toyota Motor's Gross Margin % or its related term are showing as below:

TM' s Gross Margin % Range Over the Past 10 Years
Min: 16.99 Med: 18.36 Max: 20.41
Current: 19.86

During the past 13 years, the highest Gross Margin % of Toyota Motor was 20.41%. The lowest was 16.99%. And the median was 18.36%.

TM's Gross Margin % is ranked better than
52.17% of 1267 companies
in the Vehicles & Parts industry
Industry Median: 19.36 vs TM: 19.86

Toyota Motor had a gross margin of 22.30% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Toyota Motor was -0.90% per year.

Toyota Motor Gross Margin % Historical Data

The historical data trend for Toyota Motor's Gross Margin % 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.

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Toyota Motor Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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18.01

18.02

17.76

19.03

16.99

Toyota Motor Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															19.82	16.15	19.56	20.73	22.30

Competitive Comparison

For the Auto Manufacturers subindustry, Toyota Motor's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

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

* The bar in red indicates where Toyota Motor's Gross Margin % falls into.

Toyota Motor Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

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

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	47230.4	/	277967.251
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(277967.251 - 230736.869)	/	277967.251
	=	16.99 %

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

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	18650.2	/	83629.515
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(83629.515 - 64979.272)	/	83629.515
	=	22.30 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Toyota Motor (NYSE:TM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Toyota Motor had a gross margin of 22.30% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Toyota Motor Gross Margin % 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 » Gross Margin %

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.