Financial Analysis of Honda
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.
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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
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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
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.
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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
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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
References: Foundations of Financial Management, 13th edition, Block/Hirt/Danielsen http://www.bloomberg.com/ Journal Article Mizuho Securities Equity Research (27 May, 2010) “Auto industry covered by thick clouds” .www.honda.com Journal Article Deutsche Bank Group (25 May, 2010) Japanese auto sector report. http://finance.yahoo.com/ http://www.economist.com/ http://en.wikipedia.org/wiki/Honda http://www.reuters.com/ http://world.honda.com/investors/reports/ http://www.toyota.co.jp/en/ir/financial_results/2010/index.html http://www.automobile.com/bmw-most-valuable-worldwide-auto-brand.html Weetman text and class notes. • • • • • • • • • • • • • 24