Honda company

Founded in sep 24,1948.

Headquarter in Tokyo Japan
Employees are 179060
Products are ;
1. Auto mobiles
2. Motorcycles
3. Scooters
4. Electric Generators
5. Get Engines
6. Robotics

Aim of Honda company motors

]
Maintaining
a global viewpoint, Honda is
dedicated to supply products of the highest
quality, yet at a reasonable price for worldwide
customer satisfaction.

BALANCE SHEET
ITEMS

2007

2008

2009

2010

2011

Cash & ST
investment

945.55B

1.05T

701.82B

1.12T

1.28T

Cash only

945.55B

1.05T

690.73B

1.12T

1.28T

ST investments

11.46B

1.89B

1.7B

Total A/R

2.48T

2.36T

2.03T

1.98T

1.92T

Total Receivables
net

1.06T

1.02T

845.21B

883.48B

787.69B

Receivables Gross

1.06T

1.02T

861.67B

892.03B

795.6B

Bad debts

(7.46B)

(8.56B)

(7.9B)

Other receivables

1.43T

1.34T

1.17T

1.1T

1.13T

Inventories

1.18T

1.2T

1.24T

936.98B

900.6B

Finished Goods

772.92B

755.12B

830.97B

559.57B

531.07B

Raw Materials

375.23B

405.38B

367.79B

340.5B

319.14B

CONTT..
Other LT
investments

254.61B

222.11B

182.95B

183.33B

198.75B

Total Assets

12.04T

12.62T

11.82T

11.63T

11.57T

ST debts

1.27T

1.69T

1.71T

1.07T

1.09T

A/P

1.17T

1.05T

706.33B

827.17B

716.74B

Accruede payroll

Total current
Liabilities

4.29T

4.68T

4.24T

3.42T

3.57T

LT debt

1.91T

1.84T

1.93T

2.31T

2.04T

Deferred Taxes

244.47B

129B

159.95B

195.51B

312B

Total Laibalities

7.43T

7.93T

7.69T

7.17T

6.99T

Common Equity

4.48T

4.54T

4.01T

4.33T

4.45T

Retained earnings

4.65T

5.1T

5.1T

5.3T

5.67T

Treasury Stocks

(41.44B)

(71.93B)

(71.71B)

(71.73B)

(26.11B)

Income statement
2007

2008

2009

2010

2011

Sales/Revenue

$11..09T

$12T

$10.01T

$8.58T

$8.94T

Sales Growth

8.26%

-16.59%

-14.30%

4.17%

Cost of Goods Sold (COGS) incl. D&A

7.87T

8.54T

7.42T

6.41T

6.5T

COGS excluding D&A

7.49T

8.02T

6.78T

5.79T

5.93T

Depreciation
& Amortization Expense
View Ratios

371.49B

518.43B

637.64B

629.67B

563.64B

Depreciation

Amortization of Intangibles

COGS Growth

8.62%

-13.15%

-13.54%

1.28%

Gross Income

3.22T

3.46T

2.59T

2.16T

2.44T

Gross Income Growth

Gross income growth

11.35%
7.38%

16.25%
-25.09%

-2.41%
-16.48%

9.21%
12.73%

Gross profit margiin

27.30%

SG&A expense

2.37T

2.51T

2.4T

1.8T

1.87T

R&D

551.85B

587.96B

563.2B

463.35B

487.59B

OTHER SG&A

1.82T

1.92T

1.84T

1.34T

1.38T

SGA Growth

5.76%

-4.17%

-25.03%

3.86%

OTHER Operating IExpense

UNUSUAL Expense

20.82B

Income statement
EBIT after UNUSUAL expenses

(20.82B)

(88.46B)

(90.79B)

(25.78B)

(33.26B)

45.67B

NON OPERATING INTREST INCOME

42.36B

50.14B

41.24B

18.23B

23.58B

EQUITY AFFILIATES

INTEREST EXPENSE

12.91B

16.62B

22.54B

12.55B

8.47B

INTEREST EXPENSE GROWTHY

28.74%

35.61%

-44.32%

-32.49%

GROSS INTEREST EXPENSE

12.91B

16.62B

22.54B

12.55B

8.47B

INTEREST CAPITALIZED

PRE TAX INCOME

792.87B

895.84B

161.73B

336.2B

630.55B

PRE TAX INCOME GROWTH

12.99%

-81.95%

107.87%

87.55%

PRE TAX MARGIN

7.06%

INCOME TAX

283.858B

387.44B

109.84B

146.87B

206.83B

NON operating income /expense

Income statement
INCOME TAX CURRENT DOMESTIC

300.29B

356.1B

30.49B

36.63B

(52.7B)

INCOME TAX CURRENT FOREIGN

37.58B

53.63B

129.35B

INCOME TAX DEFERRED DOMESTIC

(16.45B)

31.34B

7.65B

(7.02B)

22.32B

INCOME TAX DEFERREED FOREIGN

34.12B

63.62B

107.86B

INCOME TAX CREDIT

EQUITY IN AFFILIATES

103.42B

118.94B

99.03B

93.28B

139.76B

OTHER AFTER TAX INCOME(EXPENSE)

NET INCOME

612.44B

627.35B

150.93B

282.61B

563.48B

Ratio analysis of
HONDA COMPANY
MOTORS

NET WORKING CAPITAL(B$)

C.R
1.4
1.2
1
0.8
0.6
0.4
0.2
0

1.19
0.96

C.R
Linear (C.R)

0.55
0.38

2007
years

1.12

current assets

2008

2009

2010

current libalities

2011

Net working capital(CA-CL)

2007

5.25

4.29

0.96

2008

5.23

4.68

0.55

2009

4.62

4.24

0.38

2010

4.61

3.42

1.19

2011

4.69

3.57

1.12

CURRENT RATIOS
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0

CR

2007
1.237

CR
years

2008
1.117

current assets($B)

2009
1.089

current libalities($B)

2010
1.347

2011
1.313

current ratio(CA/CL)

2007

5.29

4.29

1.237

2008

5.23

4.68

1.117

2009

4.62

4.24

1.089

2010

4.61

3.42

1.347

2011

4.69

3.57

1.313

CR

QUICK RATIO
QUICK RATIOS
272.622 250.955

300
200

QUICK RATIOS

100

0.948

0.861

0.797

2007

2008

2009

years

Current assetsinventories

2010

/ current liabilities

2007

2011

Quick ratio(C.A-inventories/CL)
6.99

0.948

2008

4.53

8.55

0.861

2009

4.38

10.14

0.797

2010

4.64

11.18

272.622

2011

4.71

12.8

250.955

A/R TURNOVER RATIO

A/R
5.2
5
4.8
4.6
4.4
4.2
4
3.8
A/R
years

2007
4.47

Sale

2008
5.06

2009
4.93

AR

2010
4.22

2011
4.65

AR Turnover(Sale/AR)

2007

11.09

2.48

4.47

2008

12

2.36

5.08

2009

10.01

2.03

4.94

2010

8.58

1.98

4.32

2011

8.94

1.92

4.66

A/R

AVG: COLLECTION PERIOD

ACP
90
85
80
75
70
65
60
ACP
Years

ACP
2007
81.65

2008
72.13

Days of a year

2009
74.03

AR Turn over

2010
86.49

2011
78.49

average collection period(365/AR TO)

2007

365

4.47

81.65

2008

365

5.06

72.13

2009

365

4.93

74.03

2010

365

4.22

86.49

2011

365

4.65

78.49

INVENTORY TURNOVER
ITO

8
7
6
5
4
3
2
1
0
ITO
years

2007
6.66

2008
7.11

2009
5.98

Inventory

CGS

2010
0.006

2011

ITO

average collection period(365/AR TO)

2007

7.87

1.18

6.66

2008

8.54

1.2

7.11

2009

7.42

1.24

5.98

2010

6.41

936.98

0.006

2011

6.5

900.6

0.007

AVG. AGE OF INVENTORY

80
70
60
50
40
30
20
10
0
AAI
years

AAI

2007
57.5

2008
54.6

Days of a year

2009
66.8

Inventory turnover

2010
59.8

AAI

2011

Average age of inventory(365/ITO)

2007

365

6.34

57.5

2008

365

6.68

54.6

2009

365

5.46

66.8

2010

365

0.006

59.8

2011

365

0.0065

56.1

OPERATING CYCLE
OC
150
145
140
135
130
125
120
115

2007
OC 139.15

years

2008
126.73

average collection
period

2009
140.83

2010
146.29

Average age of
inventory

2011
134.59

OC

ACP+Avrg age of invntry

2007

81.65

57.5

139.15

2008

72.13

54.6

126.73

2009

74.03

66.8

140.83

2010

86.49

59.8

146.29

2011

78.749

56.1

134.59

ASSET TURNOVER
TAT

1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0

TAT
years

2007
0.92

2008
0.95

Sale($B)

2009
0.84

Total Assets($B)

2010
0.73

TAT

2011
0.77

Total Asset turn over

2007

11.09

12.04

0.92

2008

12

12.62

0.95

2009

10.01

11.82

0.84

2010

8.58

11.63

0.73

2011

8.94

11.57

0.77

DEBT RATIO
DR

0.31
0.3
0.29
0.28
0.27
0.26
0.25
0.24
DR
years

2007
0.26

2008
0.27

Total Debts($B)

2009
0.3

Total Assets($B)

2010
0.29

2011
0.27

DR

Debt ratios(Total Debt/Total assets)

2007

3.18

12.04

0.26

2008

3.53

12.62

0.27

2009

3.64

11.82

0.30

2010

3.38

11.63

0.29

2011

3.13

11.57

0.27

DEBT/EQUITY RATIO
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
D/E RATIO
years

D/E RATIO

2007
0.68

Total Debts($B)

2008
0.75

2009
0.88

Total equity($B)

2010
0.75

D/E RATIO

2011
0.68

Debt/Eqity ratio

2007

3.18

4.61

0.68

2008

3.53

4.69

0.75

2009

3.64

4.13

0.88

2010

3.38

4.46

0.75

2011

3.13

4.58

0.68

GROSS PROFIT MARGIN

PR

0.3
0.29
0.28
0.27
0.26
0.25
0.24
0.23

PR
years

2007
0.29

2008
0.28

Gross Profit($B)

2009
0.25

Sale($B)

2010
0.25

2011
0.27

PR

G.Profit margin(G.profit/Sales)

2007

3.22

11.09

0.29

2008

3.46

12

0.28

2009

2.59

10.01

0.25

2010

2.16

8.58

0.25

2011

2.44

8.94

0.27

NET PROFIT MARGIN

PM

70
60
50
40
30
20
10
0
PM

2007
53.4

years

Net income($B)

2008
50

2009
13.68

2010
31.2

Sale($B)

2011
59.7

PM

Net profit margin(Net income/sales)

2007

592.32

11.09

53.4

2008

600.4

12

50.00

2009

137.01

10.01

13.68

2010

268.4

8.58

31.2

2011

534.09

8.94

59.7

RETURN ON TOTAL ASSETS

60
50
40
30
20
10
0
ROTA
years

ROTA

2007
49.1

2008
47.5

Net income($B)

2009
11.59

Total Assets($B)

2010
23

2011
46.16

ROTA

Return on total assets(inc/t.Assets)

2007

592.32

12.04

49.1

2008

600.04

12.62

47.5

2009

137.01

11.82

11.59

2010

268.4

11.63

23.0

2011

534.09

11.57

46.16