FINANCIAL ANALYSIS ASSIGNMENT
Executive Summary To analyze the financial statement of a select company in the automotive industry for the years 2007, 2008, 2009 and 2010. With the aid of financial reports, such as Balance Sheet, Income Statement, aim to perform an analysis based upon profitability, asset utilization, liquidity and debt utilization in comparison to the industry averages. This will be covered in the primary section of this report. The other section will cover the Horizontal, Vertical and Trend analysis followed by the calculation of the Degree of operating leverage and Degree of Financial leverage. As a conclusion, a summarized analysis for the benefit of shareholders and other stakeholders will be presented. The assignment totals to approximately 2200 words excluding tables, index and the executive summary.
TABLE OF CONTENTS 1. COMPANY INTRODUCTION 2. CONSOLIDATED FINACIAL STATEMENTS 3. TREND ANALYSIS 4. COMMON SIZE STATEMENTS 5. HORIZONTAL ANALYSIS 6. RATIO ANALYSIS 7. CONCLUSION 8. REFERANCES
About Honda- Company Profile, Strategy, Global Positioning.
Honda Motor Company, Ltd. is a globally reknowned Japanese corporation well known for it’s automobiles and motorcycles. Since its beginnings in 1948, Honda has retained it’s trademark & cutting edge stye by constantly adding value and churning out products of impeccable quality at an affordable price, for customer satisfaction, around the world. The company has also remained loyal to it’s commitment to preserving the environment and furthering automobile safety standards. Honda has become the world's largest motorcycle manufacturer and has also taken great strides in the automobile industry. With a worldwide network of 492* subsidiaries and affiliates accounted for under the equity method, Honda develops, produces and markets a wide range of products, from small multi-purpose engines and 2-wheelers to high end sports cars, thus earning an unparalleled reputation from customers around the world. Honda outshone Nissan` in 2001 to become the second-largest Japanese automobile manufacturer. In August 2008, Honda outshone Chrysler as the fourth largest automobile manufacturer in the United States. Honda is now, globally, the sixth largest automobile manufacturer . Honda was a pioneer in the motorcycle industry when it released its luxury brand, Acura in 1986. Besides their core automobile and motorcycle divisions, Honda also produces garden equipment, marine engines, personal watercraft and power generators, to name a few. Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo Stock Exchange and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya, Sapporo, Kyoto, Fukuoka, London, Paris and Switzerland.
The company also has assembly factories worldwide. These are located in China, the United States, Pakistan, Canada, England, Japan, Belgium, Brazil, New Zealand, Indonesia, India, 4
Thailand, Turkey and Perú. Since July 2010, 89 percentage of Honda and Acura automobiles sold in the United States were built in North American factories, from 82.2 percent the year before. This protects profits from the yen’s leap to a 15-year high against the dollar. Honda's Total Sales and Other Operating Revenue by Geographical Location in 2007 Geographic Location Japan North America Europe Asia Others Net revenue (in millions of ¥) 1,681,190 5,980,876 1,236,757 1,283,154 905,163
The American Honda Motor Company is headquarteres in Torrance, California. Honda Canada Inc. is based in the Scarborough region of Toronto, Ontario, and is constructing new corporate offices in Markham, Ontario, expected to shift base in 2008; their manufacturing division, Honda of Canada Manufacturing, is located in Alliston, Ontario. Honda has also built joint ventures globally, such as Honda Siel Cars and Hero Honda Motorcycles in India, Guangzhou Honda and Dongfeng Honda in China, and Honda Atlas in Pakistan.
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