Debt-to-Equity Ratio

Toyota’s Debt-to-Equity Ratio of 1.08x means that for every dollar of shareholder equity, the company has $1.08 in debt – a measure of how much the firm relies on borrowed funds versus its own capital.

This is above the sector median of 0.74x, placing Toyota in the 63rd percentile among Consumer Cyclical peers, indicating a higher leverage level than roughly 63% of comparable companies. The year-over-year and quarter-over-quarter changes are both not available, so no trend direction can be determined for the last eight quarters. Because the current ratio is elevated relative to peers and there is no trend data, the risk assessment hinges on Toyota’s ability to service its debt in a cyclical sector; a stable or declining ratio would be more reassuring, but the missing trend leaves uncertainty. Within a NEUTRAL overall verdict, this metric alone does not contradict the rating – it highlights a moderate leverage concern that is offset by the lack of deterioration, aligning with a neutral stance rather than a bullish or bearish signal.

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