TM Debt-to-Equity Ratio Analysis
Updated 11h ago·SEC filings & market data
Key Takeaway
The Debt-to-Equity Ratio measures a company's total liabilities against shareholders' equity, so 1.18x means Toyota carries $1.18 of debt for every $1 of equity.
Sector Performance
70th percentileTM
1.18x
Sector Median
0.74x
Sector Avg
2.52x
Prior Period
1.06x(Aug 2026)
Deep Analysis
The Debt-to-Equity Ratio measures a company's total liabilities against shareholders' equity, so 1.18x means Toyota carries $1.18 of debt for every $1 of equity.
This is above the sector median of 0.73x, placing Toyota in the 70th percentile, meaning it uses more leverage than most peers. The year-over-year change is N/A, but the quarter-over-quarter rise of +11.3% (from 1.06x to 1.18x) shows debt levels increasing. The combination of a higher-than-median ratio and a recent upward move implies elevated financial risk, though the absolute level is not extreme. This metric supports the overall NEUTRAL verdict because the added leverage creates some risk but does not clearly tip the stock toward bullish or bearish.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about TM?
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
How is the Debt-to-Equity Ratio calculated?
Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.
Who are TM's closest peers by Debt-to-Equity Ratio?
The closest peers by Debt-to-Equity Ratio include: W (-1.00x), MSCI (-2.37x), SBAC (-2.75x), LCID (-3.08x), TDG (-3.41x).
Learn More About Debt-to-Equity Ratio
How to Spot a Debt Problem Before It Hits the Stock Price
Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.
Debt/Equity Ratio: How Much Debt Is Too Much?
The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.
The Formula
Total Debt / Shareholders' Equity
Why It Matters
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
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1.18x
Sector Median
0.74x
Sector Avg
2.52x
How TM's Debt-to-Equity Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.