The carmaker trailed far behind rivals Ford, Honda, and Hyundai in the 2010 listing, which ranks 2,000 of the world's best corporate performers based on an equal weighting of sales, profits, assets and market value.
Toyota ranked third last year and 10th five years ago.
US carmakers General Motors and Chrysler, which are currently turning around their businesses after filing for bankruptcy protection last year, were absent from the list.
Germany's Daimler was ranked 388th and Volkswagen dropped off the list due to the complexity surrounding its 2009 merger with Porsche.
Toyota, which dethroned General Motors as the world's biggest carmaker in 2008, has recalled around 10 million vehicles worldwide due to accelerator and brake defects, which have been blamed for 58 deaths in the US.
Earlier this week the company agreed to pay a $16.4 million fine, the largest for a carmaker in the United States, for hiding for at least four months accelerator pedal defects blamed in the US deaths.
Toyota is facing at least 97 US lawsuits seeking damages for injury or death linked to sudden acceleration and 138 class action lawsuits from American customers suing to recoup losses in the resale value of Toyota vehicles.
Despite the world financial crisis, banks still dominated the list with 308 lenders in the lineup, mainly thanks to their assets, said Forbes Magazine which compiles the list.
US investment giant J.P. Morgan Chase topped the list, removing General Electric from the No. 1 spot.
Forbes said its top 2,000 companies account for $30 trillion in revenue, $1.4 trillion in profits, $124 trillion in assets and $31 trillion in market value, up 61 percent from the previous year.
Meanwhile, Moody's Investors Service on Thursday lowered its main debt rating for Toyota, saying the carmaker's well-publicized quality problems could hurt profits over the long term.
The rating agency cut its senior unsecured rating on Toyota from Aa1 to Aa2, with a negative outlook. The cuts also apply to a number of its subsidiaries.
Such ratings can affect how much it costs for companies to borrow from banks and other lenders. But the world's largest carmaker said the cut was unlikely to affect its business because it still has an A-level rating.
"The ratings downgrade by Moody's is very regrettable, but with the trust of customers as our top priority, management will put in maximum effort so that the rating is raised once again," said a Toyota spokeswoman, who asked that her name not be used due to company policy.
Moody's said in a statement that the ratings cut reflected Toyota's low level of profitability, which it expected to continue until at least 2012.
"Its product quality and recall challenges - largely centered in the US - have created significant uncertainty over whether it can maintain the pricing power it has historically achieved over its rivals," Moody's senior analyst Tadashi Usui said in the statement.
