Toyota MotorTM -0.75%81 Interest Coverage is 0 (At Loss) as of Mar. 2026. GuruFocus rates TM with a GF Score™ of 81/100 and a GF Value™ of $209.97 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,066 Vehicles & Parts companies, Toyota Motor ranks better than 83.58% on this metric.
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
by its Interest Expense. Toyota Motor's
Operating Income
for the
three
months ended in Mar. 2026 was $3,589 Mil. Toyota Motor's Interest Expense for the
three
months ended in Mar. 2026 was $16 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Toyota Motor's Interest Coverage or its related term are showing as below:
TM'
s Interest Coverage Range Over the Past 10 Years
Min: 51.81 Med: 65.21 Max: 92.29
Current: 62.47
TM's Interest Coverage is ranked better than 83.58% of 1066
companies
in the Vehicles & Parts industry
Industry Median: 8.295
vs TM: 62.47
Toyota Motor (NYSE:TM) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Toyota Motor Interest Coverage Related Terms
Toyota Motor Interest Coverage Historical Data
* Premium members only.
The historical data trend for Toyota Motor's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Auto Manufacturers subindustry, Toyota Motor's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Toyota Motor's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Toyota Motor's Interest Coverage falls into.
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:
* 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.
What does a Interest Coverage of 0 (At Loss) mean?
Toyota Motor (TM) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Toyota Motor and its competitors. Over the past decade, Toyota Motor's Interest Coverage has ranged from 51.81 to 92.29. According to the industry distribution chart, Toyota Motor ranks #175 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 16.4%.
Is Toyota Motor's Interest Coverage too high?
Toyota Motor's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 51.81 to a high of 92.29. Based on the distribution chart, Toyota Motor ranks #175 out of 1066 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. 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 Interest Coverage compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Toyota Motor ranks #175 out of 1066 companies for Interest Coverage. This places Toyota Motor in the top 16% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.30. Historically, Toyota Motor's own Interest Coverage has ranged from 51.81 to 92.29 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.30, based on 1,066 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Toyota Motor and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toyota Motor's current Interest Coverage is 0 (At Loss). 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 $209.97, compared to a current price of $166.50 — trading 20.7% below its estimated fair value. The current Interest Coverage is 0 (At Loss). 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Toyota Motor (TM), the current Interest Coverage is 0 (At Loss) 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 20.7% below its estimated GF Value™ of $209.97.
GuruFocus considers Toyota Motor to be Modestly Undervalued.
Key valuation signals for TM:
Interest Coverage: 0 (At Loss)
GF Value™: $209.97 vs. price of $166.50 (20.7% below fair value)
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.
81GF Score
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