This study examines the impact of inventory management on the financial performance of Toyota Motor Corporation during the period 2021–2025. Effective inventory management is essential for improving operational efficiency, reducing costs, and enhancing profitability in the automotive industry. The study analyzes key indicators such as inventory turnover ratio, inventory holding period, profitability ratios, liquidity ratios, and working capital efficiency using secondary data collected from annual reports and financial statements. Statistical tools including correlation, regression, and chi-square analysis were used to evaluate the relationship between inventory management and financial performance. The findings reveal that improved inventory efficiency positively influences profitability, liquidity, and overall financial stability. The study concludes that effective inventory management is a key contributor to Toyota’s financial success and competitive advantage.