Toyota Motor Corporation
TM Consumer Cyclical Auto Manufacturers
Toyota Motor Corporation’s revenue for fiscal 2026 (year ended March 2026) was $334.5 billion, up 5.51% from fiscal 2025. In the quarter to June 2026, revenue grew 4.07%, EPS grew 11.2%, free cash flow fell 702.7% and total debt rose 6.00%, each against the same quarter a year earlier. Revenue growth for three consecutive years; insiders bought in the last twelve months.
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Toyota Motor Corporation (TM) Altman Z-score
Toyota Motor Corporation's Altman Z-score for fiscal 2026 is 1.60, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | 1.60 | (0.10) |
| FY2025 | 1.69 | (0.13) |
| FY2024 | 1.82 | 0.27 |
| FY2023 | 1.54 | (0.06) |
| FY2022 | 1.61 | 0.12 |
| FY2021 | 1.49 | (0.22) |
| FY2020 | 1.70 | 0.00 |
| FY2019 | 1.70 | (0.01) |
| FY2018 | 1.71 | 0.14 |
| FY2017 | 1.57 | (0.18) |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.09 | — | 0.10 | |
| Retained earnings / total assets | 0.37 | — | 0.51 | |
| EBIT / total assets | 0.04 | — | 0.12 | |
| Market value of equity / total liabilities | 0.63 | — | 0.38 | |
| Sales / total assets | 0.48 | — | 0.48 | |
| Altman Z-score | Distress zone | 1.60 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 2.68 | ||
Z and Z″ put Toyota Motor Corporation in different zones: distress zone by Z, safe zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| TSLA Tesla, Inc. compare | 17.3× |
| RACE Ferrari N.V. compare | 8.6× |
| LI Li Auto Inc. Sponsored ADR compare | 2.1× |
| TM Toyota Motor Corporation | 1.6× |
| HMC Honda Motor Co., Ltd. compare | 1.2× |
| GM General Motors Company compare | 1.2× |
| STLA Stellantis N.V. compare | 0.9× |
| F Ford Motor Company compare | 0.8× |
| RIVN Rivian Automotive, Inc. compare | −1.2× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets