"Our commitment to hybrid technology positions us as a leader in the evolving automotive landscape, driving not just sales but also consumer loyalty."
— Hiromu Narita, CFO
03Detailed Report
TM
Toyota Motor Corporation
Period
Q4 2024
CurrencyJPY
Report TypeQuarterly Earnings
GeneratedMay 18, 2026
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Executive Summary
Toyota Motor Corporation reported a solid performance in Q4 2024, with a remarkable year-over-year increase in net income of 80.65%, totaling ¥997.69 billion, showcasing the company's strong recovery from prior economic challenges. Despite a sequential decline in revenue of 8.04% to ¥11.07 trillion, Toyota maintained healthy profitability margins, indicating resilience in its operational capabilities.
Key growth drivers included a strategic focus on hybrid and fuel-efficient vehicles, bolstered by favorable market conditions in multiple regions. However, management highlighted challenges relating to supply chain constraints and fluctuating demand dynamics, prompting a cautious outlook for the coming quarters. The company's robust balance sheet and strategic investments position it well for future growth, although investors should be mindful of emerging competitive pressures and economic headwinds.
Key Performance Indicators
Revenue
Increasing
11,072.61B
QoQ: -8.04% | YoY: 14.27%
Gross Profit
Increasing
2,250.19B
20.30% margin
QoQ: -16.20% | YoY: 43.80%
Operating Income
Increasing
1,112.70B
QoQ: -33.81% | YoY: 77.48%
Net Income
Increasing
997.69B
QoQ: -26.52% | YoY: 80.65%
EPS
Increasing
74.02
QoQ: -26.44% | YoY: 82.00%
Revenue Trend
Margin Analysis
Financial Highlights
### Revenue Performance
Toyota's Q4 2024 revenue reached ¥11.07 trillion, down 8.04% from the previous quarter but reflecting a 14.27% increase year-over-year, primarily driven by higher vehicle sales and better product mix.
### Profitability
- Gross Profit: ¥2.25 trillion, a year-over-year increase of 43.80% but down 16.20% sequentially, which can be attributed to rising raw material costs.
- Operating Income: ¥1.11 trillion, up 77.48% YoY, yet reflecting a sequential decrease of 33.81%.
- Net Income: ¥997.69 billion, with an 80.65% year-over-year growth but a notable 26.52% drop quarter-over-quarter.
### Margins
- Gross Profit Margin: 20.3%, indicating strong cost control despite a decrease from previous quartiles.
- Operating Margin: 10.0% with a notable recovery compared to prior quarters.
- Net Margin: 9.0%, maintaining a competitive edge in an evolving market.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
11,072.61B
14.27%
-8.04%
Gross Profit
2,250.19B
43.80%
-16.20%
Operating Income
1,112.70B
77.48%
-33.81%
Net Income
997.69B
80.65%
-26.52%
EPS
74.02
82.00%
-26.44%
Key Financial Ratios
Gross Profit Margin
Fair
20.30%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
10.00%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
9.01%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.11%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.92%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.19
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
1.07
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
12.29x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.43x
Price-to-book ratio reasonable for profitable companies
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