TM Quick Ratio Analysis

The quick ratio is a liquidity measure showing whether a company can cover its immediate short-term debts using only its most liquid assets, like cash and receivables, without relying on inventory; at 0.86x, Toyota has $0.86 of these liquid assets for every $1 of current liabilities due within a year.

This sits above the sector median of 0.72x, placing the company at the 58th percentile among its peers. The year-over-year change is not available, but quarter-over-quarter the quick ratio rose by 2.4%, and the two most recent readings moved from 0.84x to 0.86x. A sub-1.0 ratio can signal tight liquidity, though being above the sector median and improving quarter-over-quarter suggests the risk of a near-term cash shortfall is lower than for most peers. The combination of a moderate level and a positive quarterly trend points to a balanced risk profile — not an urgent liquidity concern, but also no excess cash buffer. This supports the overall NEUTRAL verdict, as the metric neither raises red flags nor indicates unusual financial strength.

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