Toyota Shifts Focus to Consistent Return on Equity

March 5, 2025 - 06:07

Toyota Motor is placing greater emphasis on return on equity (ROE) as a key performance indicator, with internal discussions aiming to elevate ROE to 20%. A senior finance executive from the company shared insights during a recent interview, highlighting the importance of consistency in financial performance rather than adhering to strict time-bound targets.

Masahiro Yamamoto, the chief officer of Toyota's Accounting Group, noted that while ROE is a valuable measure, it is not without its limitations. He stressed that the priority lies in achieving and maintaining a stable ROE over time, rather than simply reaching a predetermined percentage by a specific deadline. This approach reflects Toyota's commitment to sustainable growth and financial health, as the company navigates the complexities of the automotive industry.

As the market evolves, Toyota's focus on consistent financial performance could play a crucial role in its long-term strategy and investor relations.