I calculated the liquidity ratios of Toyota using statistics from Yahoo Finance.
Current Ratio = 120,633,000/119,181,000 = 1.01
Quick Ratio = 120,633,000 – 18,222,000 / 119,181,000 = .86
As you can see Toyota’s current and quick ratio are lower than the standards. The company’s current ratio is about half of what it needs to be. These ratios indicate that Toyota is not very liquid short-term.
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Hey no wonder that Toyota is the biggest car manufacturer in the world. They are financially healthy and I read in an article that Toyota had 30 billion in cash. With that money they can survive this crisis withouth big cuts.
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