Ratios (Summary) : Ratios (Summary) Current Ratio Quick Ratio Cash Ratio

 ProfileLiquidity ratios measure the company's ability to meet its short-term obligations.
 Ratios (Summary)
 Current Ratio
 Quick Ratio
 Cash Ratio
Ratios (Summary)
Honda Motor Co., Ltd., liquidity ratios
Mar 31, Mar 31, Mar 31, Mar 31, Mar 31,

2010 2009 2008 2007 2006
Current ratio 1.35 1.09 1.12 1.23 1.16
Quick ratio 0.91 0.64 0.73 0.80 0.74
Cash ratio 0.33 0.16 0.22 0.22 0.19
Source: Based on data from Honda Motor Co., Ltd. Annual Reports
Ratio Description The company

Current ratio A liquidity ratio calculated as current assets Honda Motor Co., Ltd.'s current ratio
divided by current liabilities. deteriorated from 2008 to 2009 but then
improved from 2009 to 2010 exceeding 2008
level.
Quick ratio A liquidity ratio calculated as (cash plus short- Honda Motor Co., Ltd.'s quick ratio
term marketable investments plus deteriorated from 2008 to 2009 but then
receivables) divided by current liabilities. improved from 2009 to 2010 exceeding 2008
level.
Cash ratio A liquidity ratio calculated as (cash plus short- Honda Motor Co., Ltd.'s cash ratio
term marketable investments) divided by deteriorated from 2008 to 2009 but then
current liabilities. improved from 2009 to 2010 exceeding 2008
level.
Current Ratio

2010 2009 2008 2007 2006
Selected Financial Data (USD $ in millions, translated from JPY ￥)
Total assets, current 56,492 49,647 57,623 47,018 38,867

Total liabilities, current 41,865 45,524 51,532 38,381 33,519
Current Ratio, Comparison to Industry
Honda Motor Co., Ltd. 1.35 1.09 1.12 1.23 1.16

Industry, Consumer Goods – 1.09 1.10 1.08 1.13

Current ratio A liquidity ratio calculated as current assets Honda Motor Co., Ltd.'s current ratio
divided by current liabilities. deteriorated from 2008 to 2009 but then
level.
Quick Ratio

2010 2009 2008 2007 2006
Cash and cash equivalents 13,713 7,417 11,575 8,464 6,279

Accounts and notes receivable, net 10,818 9,177 11,254 9,448 8,094
Financing receivables, net 13,471 12,592 14,767 12,767 10,342
Total quick assets 38,001 29,186 37,596 30,680 24,715
Quick Ratio, Comparison to Industry


Quick ratio A liquidity ratio calculated as (cash plus short- Honda Motor Co., Ltd.'s quick ratio
term marketable investments plus deteriorated from 2008 to 2009 but then
receivables) divided by current liabilities. improved from 2009 to 2010 exceeding 2008
level.
Cash Ratio

2010 2009 2008 2007 2006
Cash and cash equivalents 13,713 7,417 11,575 8,464 6,279

Total cash assets 13,713 7,417 11,575 8,464 6,279
Cash Ratio, Comparison to Industry


Cash ratio A liquidity ratio calculated as (cash plus short- Honda Motor Co., Ltd.'s cash ratio
term marketable investments) divided by deteriorated from 2008 to 2009 but then
current liabilities. improved from 2009 to 2010 exceeding 2008
level.
Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of
ownership of the enterprise).
 Current Valuation Ratios

 Historical Valuation Ratios (Summary)
 Price to Earnings (P/E)
 Price to Operating Profit (P/OP)
 Price to Sales (P/S)
 Price to Book Value (P/BV)
Current Valuation Ratios
Honda Motor Co., Ltd., current price multiples
Honda Motor Co., Ltd. Consumer Goods
Selected Financial Data

Current share price (P) $ 43.99
No. shares of common stock outstanding 1,814,602,736
Growth rate (g) 1.05%

Earnings per share (EPS) $ 1.81
Next year EPS $ 2.44
Operating profit per share $ 2.45
Sales per share $ 57.89
Book value per share (BVPS) $ 29.21
Ratios (Price Multiples)

Price to earnings (P/E) 24.29 26.52
Price to next year earnings 18.06 27.57
Price to operating profit (P/OP) 17.92 16.77
Price to sales (P/S) 0.76 1.31
Price to book value (P/BV) 1.51 2.97
If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Honda Motor Co., Ltd., historical price multiples

2010 2009 2008 2007 2006
Price to earnings (P/E) 16.33 33.74 9.34 12.63 11.58
Price to operating profit (P/OP) 12.05 24.38 5.88 8.79 7.96
Price to sales (P/S) 0.51 0.46 0.47 0.68 0.70
Price to book value (P/BV) 1.01 1.15 1.23 1.67 1.68
P/E ratio The P/E ratio tells analyst how much an Honda Motor Co., Ltd.'s P/E ratio increased
investor in common stock pays per dollar of from 2008 to 2009 but then slightly declined
current earnings. from 2009 to 2010 not reaching 2008 level.
P/OP ratio Because P/E ratio is calculated using net Honda Motor Co., Ltd.'s P/OP ratio increased
income, the ratio can be sensitive to from 2008 to 2009 but then slightly declined
nonrecurring earnings and capital structure, from 2009 to 2010 not reaching 2008 level.
analysts can may use price to operating profit.
P/S ratio An rationale for the P/S ratio is that sales, as Honda Motor Co., Ltd.'s P/S ratio declined
the top line in an income statement, are from 2008 to 2009 but then increased from
generally less subject to distortion or 2009 to 2010 exceeding 2008 level.
manipulation than other fundamentals such as
EPS or book value. Sales are also more stable
than earnings and never negative.
P/BV ratio The P/BV ratio is interpreted as an indicator of Honda Motor Co., Ltd.'s P/BV ratio declined
market judgment about the relationship from 2008 to 2009 and from 2009 to 2010.
between a company's required rate of return
and its actual rate of return.
Price to Earnings (P/E)
Mar 31, Mar 31, Mar 31, Mar 31,

Mar 31, 2006
2010 2009 2008 2007
1,814,602,7 1,814,609,0 1,814,537,8 1,821,992,9 1,826,148,43
No. shares of common stock outstanding1
36 00 99 08 0
Selected Data (USD $)

Net income (loss) attributable to parent
3,286 1,472 6,609 5,302 5,016
(in millions)
Earnings per share (EPS) 1.81 0.81 3.64 2.91 2.75
Share price1, 2 29.58 27.37 34.03 36.77 31.82
P/E Ratio, Comparison to Industry

1
Data adjusted for splits and stock dividends.
2
Close price on the filing date of Honda Motor Co., Ltd.'s Annual Report.

P/E ratio The P/E ratio tells analyst how much an Honda Motor Co., Ltd.'s P/E ratio increased
investor in common stock pays per dollar of from 2008 to 2009 but then slightly declined
current earnings. from 2009 to 2010 not reaching 2008 level.
Price to Operating Profit (P/OP)
Mar 31, Mar 31, Mar 31, Mar 31,

Mar 31, 2006
2010 2009 2008 2007
1,814,602,7 1,814,609,0 1,814,537,8 1,821,992,9 1,826,148,43
36 00 99 08 0
Operating income (loss) (in millions) 4,454 2,037 10,498 7,626 7,300

Operating profit per share 2.45 1.12 5.79 4.19 4.00
Share price1, 2 29.58 27.37 34.03 36.77 31.82
P/OP Ratio, Comparison to Industry

1
2

P/OP ratio Because P/E ratio is calculated using net Honda Motor Co., Ltd.'s P/OP ratio increased
income, the ratio can be sensitive to from 2008 to 2009 but then slightly declined
nonrecurring earnings and capital structure, from 2009 to 2010 not reaching 2008 level.
analysts can may use price to operating
profit.
Price to Sales (P/S)
Mar 31, Mar 31, Mar 31, Mar 31,

Mar 31, 2006
2010 2009 2008 2007
1,814,602,7 1,814,609,0 1,814,537,8 1,821,992,9 1,826,148,43
36 00 99 08 0
Revenues (in millions) 105,047 107,555 132,204 99,249 83,246

Sales per share 57.89 59.27 72.86 54.47 45.59
Share price1, 2 29.58 27.37 34.03 36.77 31.82
P/S Ratio, Comparison to Industry

1
2

P/S ratio An rationale for the P/S ratio is that sales, as Honda Motor Co., Ltd.'s P/S ratio declined
the top line in an income statement, are from 2008 to 2009 but then increased from
generally less subject to distortion or 2009 to 2010 exceeding 2008 level.
manipulation than other fundamentals such
as EPS or book value. Sales are also more
stable than earnings and never negative.
Price to Book Value (P/BV)
Mar 31, Mar 31, Mar 31, Mar 31,

Mar 31, 2006
2010 2009 2008 2007
1,814,602,7 1,814,609,0 1,814,537,8 1,821,992,9 1,826,148,43
36 00 99 08 0

Total stockholders' equity attributable to
53,002 43,052 50,052 40,127 34,664
parent (in millions)
Book value per share (BVPS) 29.21 23.73 27.58 22.02 18.98
Share price1, 2 29.58 27.37 34.03 36.77 31.82
P/BV Ratio, Comparison to Industry

1
2

P/BV ratio The P/BV ratio is interpreted as an indicator Honda Motor Co., Ltd.'s P/BV ratio declined
of market judgment about the relationship from 2008 to 2009 and from 2009 to 2010.
between a company's required rate of return
and its actual rate of return.
Short-term (Operating) Activity Analysis
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of
inventory.
 Inventory Turnover
 Receivables Turnover
 Payables Turnover
 Working Capital Turnover
 Average Inventory Processing Period
 Average Receivable Collection Period
 Operating Cycle
 Average Payables Payment Period
 Cash Conversion Cycle
Ratios (Summary)
Honda Motor Co., Ltd., short-term (operating) activity ratios

2010 2009 2008 2007 2006
Turnover Ratios
Inventory turnover 9.17 8.05 10.01 9.37 9.56
Receivables turnover 9.71 11.72 11.75 10.50 10.29
Payables turnover 10.37 14.17 11.39 9.50 8.76
Working capital turnover 8.65 7.19 10.29 10.34 11.41
Average No. of Days
Average inventory processing period 40 45 36 39 38
Add: Average receivable collection period 38 31 31 35 35
Operating cycle 77 76 68 74 74
Less: Average payables payment period -35 -26 -32 -38 -42
Cash conversion cycle 42 51 35 35 32
Inventory turnover An activity ratio calculated as revenue divided Honda Motor Co., Ltd.'s inventory turnover
by inventory. deteriorated from 2008 to 2009 but then
improved from 2009 to 2010 not reaching
2008 level.
Receivables turnover An activity ratio equal to revenue divided by Honda Motor Co., Ltd.'s receivables turnover
receivables. deteriorated from 2008 to 2009 and from
2009 to 2010.
Payables turnover An activity ratio calculated as revenue divided Honda Motor Co., Ltd.'s payables turnover
by payables. increased from 2008 to 2009 but then
declined significantly from 2009 to 2010.
Working capital turnover An activity ratio calculated as revenue divided Honda Motor Co., Ltd.'s working capital
by working capital. turnover deteriorated from 2008 to 2009 but
then slightly improved from 2009 to 2010.
Average inventory processing An activity ratio equal to the number of days Honda Motor Co., Ltd.'s average inventory
period in the period divided by inventory turnover processing period deteriorated from 2008 to
over the period. 2009 but then improved from 2009 to 2010
not reaching 2008 level.
Average receivable collection An activity ratio equal to the number of days Honda Motor Co., Ltd.'s average receivable
period in the period divided by receivables collection period deteriorated from 2008 to
turnoverd. 2009 and from 2009 to 2010.
Operating cycle Equal to average inventory processing period Honda Motor Co., Ltd.'s operating cycle
plus average receivables collection period. deteriorated from 2008 to 2009 and from
2009 to 2010.
Average payables payment period An estimate of the average number of days it Honda Motor Co., Ltd.'s average payables
takes a company to pay its suppliers; equal to payment period declined from 2008 to 2009
the number of days in the period divided by but then increased from 2009 to 2010
payables turnover ratio for the period. exceeding 2008 level.
Cash conversion cycle A financial metric that measures the length of Honda Motor Co., Ltd.'s cash conversion cycle
time required for a company to convert cash deteriorated from 2008 to 2009 but then
invested in its operations to cash received as improved from 2009 to 2010 not reaching
a result of its operations; equal to average 2008 level.
inventory processing period plus average
receivables collection period minus average
payables payment period.
Inventory Turnover
2010 2009 2008 2007 2006
Revenues 105,047 107,555 132,204 99,249 83,246
Inventory, net 11,456 13,364 13,209 10,591 8,707
Inventory Turnover, Comparison to Industry
Inventory turnover An activity ratio calculated as revenue divided Honda Motor Co., Ltd.'s inventory turnover
by inventory. deteriorated from 2008 to 2009 but then
improved from 2009 to 2010 not reaching
2008 level.
Receivables Turnover

2010 2009 2008 2007 2006
Revenues 105,047 107,555 132,204 99,249 83,246
Accounts and notes receivable, net 10,818 9,177 11,254 9,448 8,094
Receivables Turnover, Comparison to Industry
Receivables turnover An activity ratio equal to revenue divided by Honda Motor Co., Ltd.'s receivables turnover
receivables. deteriorated from 2008 to 2009 and from
2009 to 2010.
Payables Turnover

2010 2009 2008 2007 2006
Revenues 105,047 107,555 132,204 99,249 83,246
Accounts payable 10,128 7,588 11,611 10,443 9,508
Payables Turnover, Comparison to Industry
Payables turnover An activity ratio calculated as revenue divided Honda Motor Co., Ltd.'s payables turnover
by payables. increased from 2008 to 2009 but then
declined significantly from 2009 to 2010.
Working Capital Turnover

2010 2009 2008 2007 2006
Revenues 105,047 107,555 132,204 99,249 83,246
Working capital 12,146 14,953 12,852 9,597 7,293
Working Capital Turnover, Comparison to Industry
Working capital turnover An activity ratio calculated as revenue divided Honda Motor Co., Ltd.'s working capital
by working capital. turnover deteriorated from 2008 to 2009 but
Average Inventory Processing Period

2010 2009 2008 2007 2006

Inventory turnover 9.17 8.05 10.01 9.37 9.56
Average Inventory Processing Period (no. of days), Comparison to Industry
Honda Motor Co., Ltd. 40 45 36 39 38
Industry, Consumer Goods – 36 35 39 37
Average inventory processing An activity ratio equal to the number of days Honda Motor Co., Ltd.'s average inventory
period in the period divided by inventory turnover processing period deteriorated from 2008 to
over the period. 2009 but then improved from 2009 to 2010
Average Receivable Collection Period

2010 2009 2008 2007 2006
Receivables turnover 9.71 11.72 11.75 10.50 10.29
Average Receivable Collection Period (no. of days), Comparison to Industry
Average receivable collection An activity ratio equal to the number of days Honda Motor Co., Ltd.'s average receivable
period in the period divided by receivables collection period deteriorated from 2008 to
turnoverd. 2009 and from 2009 to 2010.
Operating Cycle

2010 2009 2008 2007 2006
Selected Financial Data (no. of days)
Average receivable collection period 38 31 31 35 35
Operating Cycle (no. of days), Comparison to Industry

Operating cycle Equal to average inventory processing period Honda Motor Co., Ltd.'s operating cycle
plus average receivables collection period. deteriorated from 2008 to 2009 and from
2009 to 2010.
Average Payables Payment Period

2010 2009 2008 2007 2006
Payables turnover 10.37 14.17 11.39 9.50 8.76
Average Payables Payment Period (no. of days), Comparison to Industry
Average payables payment period An estimate of the average number of days it Honda Motor Co., Ltd.'s average payables
takes a company to pay its suppliers; equal to payment period declined from 2008 to 2009
the number of days in the period divided by but then increased from 2009 to 2010
payables turnover ratio for the period. exceeding 2008 level.
Cash Conversion Cycle

2010 2009 2008 2007 2006
Selected Financial Data (no. of days)
Average receivable collection period 38 31 31 35 35
Average payables payment period 35 26 32 38 42
Cash Conversion Cycle (no. of days), Comparison to Industry

Cash conversion cycle A financial metric that measures the length of Honda Motor Co., Ltd.'s cash conversion cycle
time required for a company to convert cash deteriorated from 2008 to 2009 but then
invested in its operations to cash received as improved from 2009 to 2010 not reaching
a result of its operations; equal to average 2008 level.
inventory processing period plus average
receivables collection period minus average
payables payment period.
Long-term (Investment) Activity Analysis
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of
inventory.
 Net Fixed Asset Turnover
 Total Asset Turnover
 Equity Turnover
Ratios (Summary)
Honda Motor Co., Ltd., long-term (investment) activity ratios

2010 2009 2008 2007 2006
Net fixed asset turnover 2.53 2.91 3.85 4.59 5.46
Total asset turnover 0.74 0.85 0.95 0.92 0.94
Equity turnover 1.98 2.50 2.64 2.47 2.40
Net fixed asset turnover An activity ratio calculated as total revenue Honda Motor Co., Ltd.'s net fixed asset
divided by net fixed assets. turnover deteriorated from 2008 to 2009 and
from 2009 to 2010.
Total asset turnover An activity ratio calculated as total revenue Honda Motor Co., Ltd.'s total asset turnover
divided by total assets. deteriorated from 2008 to 2009 and from
2009 to 2010.
Equity turnover An activity ratio calculated as total revenue Honda Motor Co., Ltd.'s equity turnover
divided by shareholders' equity. deteriorated from 2008 to 2009 and from
2009 to 2010.
Net Fixed Asset Turnover

2010 2009 2008 2007 2006
Revenues 105,047 107,555 132,204 99,249 83,246
Property, plant and equipment, net 41,567 36,909 34,368 21,618 15,252
Net Fixed Asset Turnover, Comparison to Industry
Net fixed asset turnover An activity ratio calculated as total revenue Honda Motor Co., Ltd.'s net fixed asset
divided by net fixed assets. turnover deteriorated from 2008 to 2009 and
from 2009 to 2010.
Total Asset Turnover

2010 2009 2008 2007 2006
Revenues 105,047 107,555 132,204 99,249 83,246
Total assets 142,392 126,976 138,953 107,748 88,823
Total Asset Turnover, Comparison to Industry
Total asset turnover An activity ratio calculated as total revenue Honda Motor Co., Ltd.'s total asset turnover
divided by total assets. deteriorated from 2008 to 2009 and from
2009 to 2010.
Equity Turnover

2010 2009 2008 2007 2006
Revenues 105,047 107,555 132,204 99,249 83,246

53,002 43,052 50,052 40,127 34,664
parent
Equity Turnover, Comparison to Industry
Equity turnover An activity ratio calculated as total revenue Honda Motor Co., Ltd.'s equity turnover
divided by shareholders' equity. deteriorated from 2008 to 2009 and from
2009 to 2010.
Long-term Debt and Solvency Analysis
Solvency ratios also known as long-term debt ratios measure a company's ability to meet long-term obligations.
 Debt to Equity
 Debt to Capital
 Interest Coverage
Ratios (Summary)
Honda Motor Co., Ltd., debt and solvency ratios

2010 2009 2008 2007 2006
Debt to equity 0.95 1.15 0.97 0.88 0.78
Debt to capital 0.49 0.54 0.49 0.47 0.44
Interest coverage 35.22 12.57 62.05 70.41 79.10
Debt-to-equity ratio A solvency ratio calculated as total debt Honda Motor Co., Ltd.'s debt-to-equity ratio
divided by total shareholders' equity. deteriorated from 2008 to 2009 but then
level.
Debt-to-capital ratio A solvency ratio calculated as total debt Honda Motor Co., Ltd.'s debt-to-capital ratio
divided by total debt plus shareholders' deteriorated from 2008 to 2009 but then
equity. improved from 2009 to 2010 exceeding 2008
level.
Interest coverage ratio A solvency ratio calculated as EBIT divided by Honda Motor Co., Ltd.'s interest coverage
interest payments. ratio deteriorated from 2008 to 2009 but then
slightly improved from 2009 to 2010.
Debt to Equity

2010 2009 2008 2007 2006
Short-term borrowings 13,057 18,337 18,583 11,332 5,827

Long-term debt, current maturities 8,844 10,502 9,594 6,941 5,526
Long-term debt, excluding current
28,322 20,763 20,230 17,060 15,787
maturities
Total debt 50,223 49,602 48,406 35,333 27,140
53,002 43,052 50,052 40,127 34,664
parent
Debt to Equity, Comparison to Industry


Debt-to-equity ratio A solvency ratio calculated as total debt Honda Motor Co., Ltd.'s debt-to-equity ratio
divided by total shareholders' equity. deteriorated from 2008 to 2009 but then
level.
Debt to Capital

2010 2009 2008 2007 2006

Long-term debt, current maturities 8,844 10,502 9,594 6,941 5,526
Long-term debt, excluding current
28,322 20,763 20,230 17,060 15,787
maturities
Total debt 50,223 49,602 48,406 35,333 27,140
53,002 43,052 50,052 40,127 34,664
parent
Total capital 103,224 92,654 98,459 75,460 61,804
Debt to Capital, Comparison to Industry


Debt-to-capital ratio A solvency ratio calculated as total debt Honda Motor Co., Ltd.'s debt-to-capital ratio
divided by total debt plus shareholders' deteriorated from 2008 to 2009 but then
equity. improved from 2009 to 2010 exceeding 2008
level.
Interest Coverage

2010 2009 2008 2007 2006
Net income (loss) attributable to parent 3,286 1,472 6,609 5,302 5,016
Net income (loss) attributable to
Add: 174 150 301 180 128
noncontrolling interest
Add: Interest expense 154 242 183 116 100
Add: Income tax expense (benefit) 1,798 1,180 4,267 2,541 2,665
Earnings before interest and tax (EBIT) 5,412 3,044 11,360 8,139 7,910
Interest Coverage, Comparison to Industry


Interest coverage ratio A solvency ratio calculated as EBIT divided by Honda Motor Co., Ltd.'s interest coverage
interest payments. ratio deteriorated from 2008 to 2009 but then
Profitability Analysis
Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).
 Operating Profit Margin
 Net Profit Margin
 Return on Equity (ROE)
 Return on Assets (ROA)
Ratios (Summary)
Honda Motor Co., Ltd., profitability ratios


2010 2009 2008 2007 2006
Return on Sales (%)
Operating profit margin 4.24 1.89 7.94 7.68 8.77

Net profit margin 3.13 1.37 5.00 5.34 6.03
Return on Investment (%)
Return on equity (ROE) 6.20 3.42 13.20 13.21 14.47

Return on assets (ROA) 2.31 1.16 4.76 4.92 5.65

Operating profit margin A profitability ratio calculated as operating Honda Motor Co., Ltd.'s operating profit
income divided by revenue. margin deteriorated from 2008 to 2009 but
Net profit margin An indicator of profitability, calculated as net Honda Motor Co., Ltd.'s net profit margin
income divided by revenue. deteriorated from 2008 to 2009 but then
ROE A profitability ratio calculated as net income Honda Motor Co., Ltd.'s ROE deteriorated
divided by shareholders' equity. from 2008 to 2009 but then slightly improved
from 2009 to 2010.
ROA A profitability ratio calculated as net income Honda Motor Co., Ltd.'s ROA deteriorated
divided by total assets. from 2008 to 2009 but then slightly improved
from 2009 to 2010.
Operating Profit Margin

2010 2009 2008 2007 2006
Operating income (loss) 4,454 2,037 10,498 7,626 7,300

Revenues 105,047 107,555 132,204 99,249 83,246
Operating Profit Margin (%), Comparison to Industry


Operating profit margin A profitability ratio calculated as operating Honda Motor Co., Ltd.'s operating profit
income divided by revenue. margin deteriorated from 2008 to 2009 but
Net Profit Margin

2010 2009 2008 2007 2006
Revenues 105,047 107,555 132,204 99,249 83,246
Net Profit Margin (%), Comparison to Industry


Net profit margin An indicator of profitability, calculated as net Honda Motor Co., Ltd.'s net profit margin
income divided by revenue. deteriorated from 2008 to 2009 but then
Return on Equity (ROE)

2010 2009 2008 2007 2006
53,002 43,052 50,052 40,127 34,664
parent
ROE (%), Comparison to Industry


ROE A profitability ratio calculated as net income Honda Motor Co., Ltd.'s ROE deteriorated
divided by shareholders' equity. from 2008 to 2009 but then slightly improved
from 2009 to 2010.
Return on Assets (ROA)

2010 2009 2008 2007 2006
Total assets 142,392 126,976 138,953 107,748 88,823
ROA (%), Comparison to Industry


ROA A profitability ratio calculated as net income Honda Motor Co., Ltd.'s ROA deteriorated
divided by total assets. from 2008 to 2009 but then slightly improved
from 2009 to 2010.
 ProfileAnalysis of Inventory
 Inventory Accounting Policy
 Inventory Disclosure
Inventory Accounting Policy
Inventories are stated at the lower of cost or market. Cost is determined principally on a first-in, first-out basis.
Source: Honda Motor Co., Ltd., Annual Report
Inventory Disclosure
Honda Motor Co., Ltd., Statement of Financial Position, Inventory
USD $ in millions, translated from JPY ￥

2010 2009 2008 2007 2006
Finished goods 6,852 8,928 8,317 6,919 5,774
Work in process 435 486 427 313 237
Raw materials 4,169 3,951 4,465 3,359 2,696
Total inventory, net 11,456 13,364 13,209 10,591 8,707
Source: Based on data from Honda Motor Co., Ltd., Annual Reports
Item Description The company

Finished goods Carrying amount as of the balance sheet date Honda Motor Co., Ltd.'s finished goods
of merchandise or goods held by the increased from 2008 to 2009 but then
company that are readily available for sale. declined significantly from 2009 to 2010.
Work in process Carrying amount as of the balance sheet date Honda Motor Co., Ltd.'s work in process
of merchandise or goods which are partially increased from 2008 to 2009 but then slightly
completed, are generally comprised of raw declined from 2009 to 2010 not reaching 2008
materials, labor and factory overhead costs, level.
and which require further materials, labor and
overhead to be converted into finished goods,
and which generally require the use of
estimates to determine percentage complete
and pricing.
Raw materials Carrying amount as of the balance sheet date Honda Motor Co., Ltd.'s raw materials
of unprocessed items to be consumed in the declined from 2008 to 2009 but then slightly
manufacturing or production process. Also increased from 2009 to 2010.
includes purchased parts that will be used as
components of a finished product.
Total inventory, net Carrying amount (lower of cost or market) as Honda Motor Co., Ltd.'s total inventory, net
of the balance sheet date of inventories less increased from 2008 to 2009 but then
all valuation and other allowances. Excludes declined significantly from 2009 to 2010.
noncurrent inventory balances (expected to
remain on hand past one year or one
operating cycle, if longer).
Analysis of Property, Plant and Equipment
• Property, Plant and Equipment Accounting Policy
• Property, Plant and Equipment Disclosure
• Property, Plant and Equipment Ratios (Summary)
• Average Age
Property, Plant and Equipment Accounting Policy

Property on Operating Leases
Property on operating leases is reported at cost, less accumulated depreciation. Depreciation of the vehicles is
generally provided on a straight-line basis to an estimated residual value over the lease term. The residual values
of the vehicles related to the operating leases are estimated by using the estimate of future used vehicle values,
taking into consideration data obtained from third parties.
Depreciation and Amortization

Depreciation of property, plant and equipment is calculated principally by the declining-balance method based
on estimated useful lives and salvage values of the respective assets.
The estimated useful lives used in computing depreciation and amortization of property, plant and equipment
are as follows:
Asset Life
3 to 50 ye
Buildings
ars
Machinery and 2 to 20
equipment years
Source: Honda Motor Co., Ltd., Annual Report
Property, Plant and Equipment Disclosure

Honda Motor Co., Ltd., Statement of Financial Position, Property, Plant and Equipment
Mar 31, Mar 31, Mar 31, Mar 31,

Mar 31, 2006
2010 2009 2008 2007
Land 5,997 5,042 5,037 3,844 3,230
Buildings and 18,487 15,536 15,386 11,838 9,658

improvements, gross
Machinery and equipment,

39,886 33,664 34,536 26,748 21,530
gross
Construction in progress,
1,762 1,714 2,506 1,829 973
gross
Property subject to or
available for operating lease, 20,224 16,728 11,173 3,096 –
gross
Total property, plant and

86,355 72,684 68,639 47,355 35,391
equipment, gross
(34,271
Accumulated depreciation (44,787) (35,775) (25,737) (20,140)
)
Property, plant and

41,567 36,909 34,368 21,618 15,252
equipment, net
Land Carrying amount as of the balance sheet Honda Motor Co., Ltd.'s
date of real estate held for productive use. land increased from 2008 to
This excludes land held for sale. 2009 and from 2009 to
2010.
Buildings and Carrying amount as of the balance Honda Motor Co., Ltd.'s
improvements, sheet date of long-lived, depreciable buildings and improvements,
gross assets that include building structures gross increased from 2008 to
held for productive use including any 2009 and from 2009 to 2010.
addition, improvement, or renovation
to the structure, such as interior
masonry, interior flooring, electrical,
and plumbing.
Machinery and Carrying amount as of the balance sheet Honda Motor Co., Ltd.'s
equipment, gross date of long-lived, depreciable asset used machinery and equipment,
in production process to produce goods gross declined from 2008 to
and services. 2009 but then increased
from 2009 to 2010
exceeding 2008 level.
Construction in Carrying amount at the balance sheet Honda Motor Co., Ltd.'s
progress, gross date of long-lived asset under construction construction in progress,
that include construction costs to date on gross declined from 2008 to
capital projects that have not been 2009 but then slightly
completed and assets being constructed increased from 2009 to
that are not ready to be placed into 2010.
service.
Property subject to The amount of lessor property Honda Motor Co., Ltd.'s
subject
or available
to or available
for for lease, at cost adjusted for any property subject to or
previously
operatingrecognized
lease, impairment charges, by major property available for operating
class,
grossas of the balance sheet date. lease, gross increased from
2008 to 2009 and from
2009 to 2010.
Total property, Carrying amount at the balance sheet Honda Motor Co., Ltd.'s
plant and date for long-lived physical assets used in total property, plant and
equipment, gross the normal conduct of business and not equipment, gross increased
intended for resale. This can include land, from 2008 to 2009 and from
physical structures, machinery, vehicles, 2009 to 2010.
furniture, computer equipment,
construction in progress, and similar items.
Amount does not include depreciation.
Property, plant and Tangible assets that are held by an entity Honda Motor Co., Ltd.'s
equipment, net for use in the production or supply of property, plant and
goods and services, for rental to others, or equipment, net increased
for administrative purposes and that are from 2008 to 2009 and from
expected to provide economic benefit for 2009 to 2010.
more than one year; net of accumulated
depreciation. Examples include land,
buildings, and production equipment.
Property, Plant and Equipment Ratios (Summary)

Honda Motor Co., Ltd., Property, Plant and Equipment Ratios
Mar 31, Mar 31, Mar 31,

Mar 31, 2010 Mar 31, 2006
2009 2008 2007
Average
55.73 52.89 53.88 59.15 62.62
age (%)
Aver As long as straight-line depreciation is used, this is Honda Motor Co., Ltd.'s average age of
age an accurate estimate of asset age as a percentage depreciable property, plant and equipment
age of depreciable life. The relative age is a useful improved from 2008 to 2009 but then
measure of whether the company's fixed asset base deteriorated significantly from 2009 to
is old or new. Newer assets are likely to be more 2010.
efficient.
Average Age
Mar 31, Mar 31, Mar 31, Mar 31,

Mar 31, 2006
2010 2009 2008 2007
Accumulated
44,787 35,775 34,271 25,737 20,140
depreciation
Total property, plant and

86,355 72,684 68,639 47,355 35,391
equipment, gross
Land 5,997 5,042 5,037 3,844 3,230
Ratio
Average age (%) 55.73 52.89 53.88 59.15 62.62

Average age As long as straight-line depreciation is Honda Motor Co., Ltd.'s average age
used, this is an accurate estimate of of depreciable property, plant and
asset age as a percentage of equipment improved from 2008 to 2009
depreciable life. The relative age is a but then deteriorated significantly from
useful measure of whether the 2009 to 2010.
company's fixed asset base is old or
new. Newer assets are likely to be more
efficient.
Analysis of Debt
• Total Debt Disclosure
Total Debt Disclosure

Honda Motor Co., Ltd., Statement of Financial Position, Debt
Mar 31, Mar 31, Mar 31, Mar 31,

Mar 31, 2006
2010 2009 2008 2007
Long-term debt,
8,844 10,502 9,594 6,941 5,526
current maturities
Long-term debt,
excluding current 28,322 20,763 20,230 17,060 15,787
maturities
Total debt 50,223 49,602 48,406 35,333 27,140
Total debt Sum of the carrying values as of Honda Motor Co.,

the balance sheet date of all debt plus capital lease obligations. Ltd.'s total debt
increased from 2008
to 2009 and from
2009 to 2010.
Common Stock Valuation Ratios (Price Multiples)

Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of
a specified claim (e.g., a share of ownership of the enterprise).
• Current Valuation Ratios

• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)
Current Valuation Ratios

Honda Motor Co., Ltd., current price multiples
Honda Motor Co., L
Current share price (P)
No. shares of common stock outstanding
Growth rate (g)
Earnings per share (EPS)
Next year EPS
Operating profit per share
Sales per share
Book value per share (BVPS)

Ratios (Price Multiples)
Price to earnings (P/E)
Price to next year earnings
Price to operating profit (P/OP)
Price to sales (P/S)
Price to book value (P/BV)
If company price multiple is lower then the price multiple of benchmark then company stock is
relatively undervalued.
Otherwise, if company price multiple is higher then the price multiple of benchmark then
company stock is relatively overvalued.
Historical Valuation Ratios (Summary)

Honda Motor Co., Ltd., historical price multiples
Mar 31, Mar 31, Mar 31, Mar 31,

Mar 31, 2008
2010 2009 2007 2006
Price to earnings (P/E) 16.33 33.74 9.34 12.63 11.58
Price to operating profit

12.05 24.38 5.88 8.79 7.96
(P/OP)
Price to sales (P/S) 0.51 0.46 0.47 0.68 0.70
Price to book value 1.01 1.15 1.23 1.67 1.68

(P/BV)
P/E ratio The P/E ratio tells analyst how much Honda Motor Co., Ltd.'s P/E ratio
an investor in common stock pays per increased from 2008 to 2009 but then
dollar of current earnings. slightly declined from 2009 to 2010 not
reaching 2008 level.
P/OP ratio Because P/E ratio is calculated using Honda Motor Co., Ltd.'s P/OP ratio
net income, the ratio can be sensitive increased from 2008 to 2009 but then
to nonrecurring earnings and capital slightly declined from 2009 to 2010 not
structure, analysts can may use price reaching 2008 level.
to operating profit.
P/S ratio An rationale for the P/S ratio is that Honda Motor Co., Ltd.'s P/S ratio declined
sales, as the top line in an income statement, are generally from 2008 to 2009 but then increased
less subject to distortion or manipulation than other from 2009 to 2010 exceeding 2008 level.
fundamentals such as EPS or book value. Sales are also
more stable than earnings and never negative.
P/BV ratio The P/BV ratio is interpreted as an Honda Motor Co., Ltd.'s P/BV ratio
indicator of market judgment about declined from 2008 to 2009 and from
the relationship between a company's 2009 to 2010.
required rate of return and its actual
rate of return.
Price to Earnings (P/E)
Mar 31, 2010 Mar 31, 2009 Mar 31, 2008 Mar 31, 2007 Mar 31, 2006
No. shares of
common stock 1,814,602,736 1,814,609,000 1,814,537,899 1,821,992,908 1,826,148,430
outstanding1
Net income
(loss)
attributable to 3,286 1,472 6,609 5,302 5,016
parent
(in millions)
Earnings per
1.81 0.81 3.64 2.91 2.75
share (EPS)
Share price1, 2 29.58 27.37 34.03 36.77 31.82
P/E Ratio, Comparison to Industry
Honda Motor
16.33 33.74 9.34 12.63 11.58
Co., Ltd.
Industry,
Consumer – 22.98 12.04 16.87 16.21
Goods
1
2
P/E ratio The P/E ratio tells analyst how Honda Motor Co., Ltd.'s P/E
much an investor in common ratio increased from 2008 to
stock pays per dollar of current 2009 but then slightly
earnings. declined from 2009 to 2010
Price to Operating Profit (P/OP)
No. shares of common

1,814,602,736 1,814,609,000 1,814,537,899 1,821,992,908 1,826,148,430
stock outstanding1
Operating income (loss)

4,454 2,037 10,498 7,626 7,300
(in millions)
Operating profit per

2.45 1.12 5.79 4.19 4.00
share
Share price1, 2 29.58 27.37 34.03 36.77 31.82
P/OP Ratio, Comparison to Industry
Industry, Consumer
– 14.54 8.67 12.08 11.93
Goods
1
2
P/OP ratio Because P/E ratio is calculated using net income, Honda Motor Co., Ltd.'s P/OP ratio increased
the ratio can be sensitive to nonrecurring earnings from 2008 to 2009 but then slightly declined
and capital structure, analysts can may use price from 2009 to 2010 not reaching 2008 level.
to operating profit.
Price to Sales (P/S)
No. shares of common

1,814,602,736 1,814,609,000 1,814,537,899 1,821,992,908 1,826,148,430
stock outstanding1
Revenues (in millions) 105,047 107,555 132,204 99,249 83,246
Sales per share 57.89 59.27 72.86 54.47 45.59
Share price1, 2 29.58 27.37 34.03 36.77 31.82
P/S Ratio, Comparison to Industry

Industry, Consumer
– 1.13 1.01 1.44 1.45
Goods
1
2
P/S ratio An rationale for the P/S ratio is that sales, as Honda Motor Co., Ltd.'s P/S ratio declined from
the top line in an income statement, are 2008 to 2009 but then increased from 2009 to
generally less subject to distortion or 2010 exceeding 2008 level.
manipulation than other fundamentals such
as EPS or book value. Sales are also more
stable than earnings and never negative.
Price to Book Value (P/BV)
No. shares of
common stock 1,814,602,736 1,814,609,000 1,814,537,899 1,821,992,908 1,826,148,430
outstanding1
Total
stockholders'
equity
53,002 43,052 50,052 40,127 34,664
attributable to
parent
(in millions)
Book value per

29.21 23.73 27.58 22.02 18.98
share (BVPS)
Share price1, 2 29.58 27.37 34.03 36.77 31.82
P/BV Ratio, Comparison to Industry
Honda Motor 1.01 1.15 1.23 1.67 1.68

Co., Ltd.
Industry,
Consumer – 2.57 2.40 3.09 2.98
Goods
1
2
P/BV ratio The P/BV ratio is interpreted as an indicator of market Honda Motor Co., Ltd.'s P/BV ratio declined
judgment about the relationship between a company's from 2008 to 2009 and from 2009 to 2010.
required rate of return and its actual rate of return.
Honda Motor Co., Ltd. (HMC)
Enterprise Value (EV)

Current EV
Historical EV
Current Enterprise Value (EV)

Honda Motor Co., Ltd., current enterprise value calculation
Current share price (P) $ 43.99
USD $ in millions
Common equity (market value) 79,824
Add: Stockholders' equity attributable to noncontrolling interest

1,565
(per books)
Total equity 81,389
Add: Short-term borrowings (per books) 13,057
Add: Long-term debt, current maturities (per books) 8,844
Add: Long-term debt, excluding current maturities (per books) 28,322
Total equity and debt 131,612
Less: Cash and cash equivalents (13,713)
Enterprise value (EV) 117,899
Historical Enterprise Value (EV)

Honda Motor Co., Ltd., EV calculation
No. shares of
common stock 1,814,602,736 1,814,609,000 1,814,537,899 1,821,992,908 1,826,148,430
outstanding1
Share price1, 2
29.58 27.37 34.03 36.77 31.82
(USD $)
USD $ in millions
Common equity
53,676 49,666 61,749 66,995 58,108
(market value)
Add: 1,565 1,322 1,562 1,100 735

Stockholders'
equity
attributable to
noncontrolling
interest (per
books)
Total equity 55,241 50,988 63,311 68,095 58,843
Add: Short-term
borrowings (per 13,057 18,337 18,583 11,332 5,827
books)
Add: Long-term
debt, current
8,844 10,502 9,594 6,941 5,526
maturities (per
books)
Add: Long-term
debt, excluding
current 28,322 20,763 20,230 17,060 15,787
maturities (per
books)
Total equity
105,463 100,590 111,717 103,428 85,983
and debt
Less: Cash and

(13,713) (7,417) (11,575) (8,464) (6,279)
cash equivalents
Enterprise
91,751 93,173 100,142 94,963 79,704
value (EV)
1
2
EV Enterprise value is total company value (the Honda Motor Co., Ltd.'s EV declined
market value of common equity, debt, and from 2008 to 2009 and from 2009 to
preferred equity) minus the value of cash and 2010.
short-term investments.
Enterprise Value to EBITDA (EV/EBITDA)

• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
• EV to EBITDA Ratio, Current
• EV to EBITDA Ratio, Historical
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Honda Motor Co., Ltd., EBITDA calculation
Mar 31, Mar 31,

12 months ended Mar 31, 2010 Mar 31, 2009 Mar 31, 2008
2007 2006
Net income (loss)

3,286 1,472 6,609 5,302 5,016
attributable to parent
Add: Net income (loss)

attributable to 174 150 301 180 128
noncontrolling interest
Add: Interest expense 154 242 183 116 100
Add: Income tax

1,798 1,180 4,267 2,541 2,665
expense (benefit)
Earnings before
interest and tax 5,412 3,044 11,360 8,139 7,910
(EBIT)
Add: Depreciation 7,710 6,850 5,710 3,325 2,203
Earnings before
interest, tax,
depreciation and 13,122 9,894 17,071 11,464 10,113
amortization
(EBITDA)

EBITDA To calculate EBITDA analysts start with net Honda Motor Co., Ltd.'s EBITDA
earnings. To that earnings number, interest, declined from 2008 to 2009 but
taxes, depreciation, and amortization are added. then slightly increased from 2009
EBITDA as a pre-interest number is a flow to all to 2010.
providers of capital.
EV to EBITDA Ratio, Current

Honda Motor Co., Ltd., current EV/EBITDA
Honda Motor Co., Ltd. Consumer Goods
Selected Financial Data (USD $ in millions)
Earnings before interest, tax,

depreciation and 13,122
amortization (EBITDA)
Ratio
EV/EBITDA 8.98 12.14
If company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively
undervalued.
Otherwise, if company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is
relatively overvalued.
EV to EBITDA Ratio, Historical

Honda Motor Co., Ltd., EV/EBITDA calculation
Mar 31, Mar 31, Mar 31, 2008 Mar 31, Mar 31, 2006
2010 2009 2007
Enterprise value (EV) 91,751 93,173 100,142 94,963 79,704
Earnings before interest, tax,

depreciation and 13,122 9,894 17,071 11,464 10,113
amortization (EBITDA)
EV/EBITDA, Comparison to Industry
EV/EBITDA EV/EBITDA is a valuation indicator for the Honda Motor Co., Ltd.'s EV/EBITDA ratio
overall company rather than common increased from 2008 to 2009 but then
stock. slightly declined from 2009 to 2010 not
reaching 2008 level.
Enterprise Value to FCFF (EV/FCFF)

• Free Cash Flow to The Firm (FCFF)
• EV to FCFF Ratio, Current
• EV to FCFF Ratio, Historical
Free Cash Flow to The Firm (FCFF)

Honda Motor Co., Ltd., FCFF calculation
Mar
Mar 31, Mar 31, Mar 31, Mar 31,
12 months ended 31,
2010 2009 2008 2006
2007

3,286 1,472 6,609 5,302 5,016
parent
Add: Net income (loss) attributable

174 150 301 180 128
to noncontrolling interest
Add: Net noncash charges 8,527 8,202 6,738 3,590 1,118
Less: (Increase) decrease in assets 5,795 (3,943) (3,322) (1,496) (3,026)
Add: Increase (decrease) in liabilities 1,125 (1,759) 2,086 521 1,608
Net cash provided by operating

18,908 4,122 12,412 8,097 4,844
activities
Add: Cash paid (provided), net

1,225 1,260 1,519 1,133 739
during the year for interest, net of tax
Less: Capital expenditures (11,462) (14,002) (16,604) (8,636) (3,865)
Add: Proceeds from sales of

3,301 1,277 591 196 336
property, plant and equipment
Free cash flow to the firm (FCFF) 11,972 (7,344) (2,081) 790 2,053
FCFF Free cash flow to the firm is the cash flow Honda Motor Co., Ltd.'s FCFF
available to the Honda Motor Co., Ltd.'s declined from 2008 to 2009 but
suppliers of capital after all operating then increased from 2009 to 2010
expenses have been paid and necessary exceeding 2008 level.
investments in working and fixed capital
have been made.
Enterprise Value to FCFF Ratio, Current

Honda Motor Co., Ltd., current EV/FCFF
Selected Financial Data (USD $ in millions)
Free cash flow to the firm

11,972
(FCFF)
Ratio
EV/FCFF 9.85
If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively
undervalued.
Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is
relatively overvalued.
Enterprise Value to FCFF Ratio, Historical

Honda Motor Co., Ltd., EV/FCFF calculation
Mar 31, Mar 31, Mar 31, Mar 31,

Mar 31, 2007
2010 2009 2008 2006
Enterprise value (EV) 91,751 93,173 100,142 94,963 79,704
Free cash flow to the firm

11,972 (7,344) (2,081) 790 2,053
(FCFF)
Ratio
EV/FCFF 7.66 – – 120.15 38.82
EV/FCFF Enterprise value to free cash flow to the

firm is whole company valuation indicator.
Price to FCFE (P/FCFE)

• Free Cash Flow to Equity (FCFE)
• P to FCFE Ratio, Current
• P to FCFE Ratio, Historical
Free Cash Flow to Equity (FCFE)

Honda Motor Co., Ltd., FCFE calculation
12 months ended
2010 2009 2008 2007 2006

3,286 1,472 6,609 5,302 5,016
parent
Add: Net income (loss) attributable

174 150 301 180 128
to noncontrolling interest
Add: Net noncash charges 8,527 8,202 6,738 3,590 1,118
Less: (Increase) decrease in assets 5,795 (3,943) (3,322) (1,496) (3,026)
Add: Increase (decrease) in

1,125 (1,759) 2,086 521 1,608
liabilities
Net cash provided by operating

18,908 4,122 12,412 8,097 4,844
activities
Less: Capital expenditures (11,462) (14,002) (16,604) (8,636) (3,865)

Add: Proceeds from sales of
3,301 1,277 591 196 336
property, plant and equipment
Add: Increase (decrease) in short-

(7,954) 2,909 6,630 2,740 (1,050)
term debt, net
Add: Proceeds from long-term debt 13,863 13,966 11,695 8,679 7,273
Less: Repayments of long-term

(11,802) (9,556) (8,622) (6,065) (4,777)
debt
Free cash flow to equity (FCFE) 4,854 (1,284) 6,103 5,010 2,761
FCFE Free cash flow to equity is the cash flow Honda Motor Co., Ltd.'s
available to Honda Motor Co., Ltd.'s equity FCFE declined from 2008 to
holders after all operating expenses, interest, 2009 but then increased
and principal payments have been paid and from 2009 to 2010 not
necessary investments in working and fixed reaching 2008 level.
capital have been made.
Price to FCFE Ratio, Current

Honda Motor Co., Ltd., current P/FCFE
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions) 4,854
FCFE per share 2.68
Current share price (P) 43.99

Ratio
P/FCFE 16.44
If company P/FCFE is lower then the P/FCFE of benchmark then company is relatively
undervalued.
Otherwise, if company P/FCFE is higher then the P/FCFE of benchmark then company is relatively
overvalued.
Price to FCFE Ratio, Historical

Honda Motor Co., Ltd., P/FCFE calculation
No. shares of
common stock 1,814,602,736 1,814,609,000 1,814,537,899 1,821,992,908 1,826,148,430
outstanding1
Free cash flow to

equity (FCFE) 4,854 (1,284) 6,103 5,010 2,761
(in millions)
FCFE per share 2.68 -0.71 3.36 2.75 1.51
Share price1, 2 29.58 27.37 34.03 36.77 31.82
Ratio
P/FCFE 11.06 – 10.12 13.37 21.05

1
2
P/FCFE Price to free cash flow to equity is cash Honda Motor Co., Ltd.'s P/FCFE
valuation indicator of stockholders' equity. ratio declined from 2008 to 2009
but then increased from 2009 to
2010 exceeding 2008 level.

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 ProfileLiquidity ratios measure the company's ability to meet its short-term obligations.

Honda Motor Co., Ltd., liquidity ratios

Ratio Description The company

Selected Financial Data (USD $ in millions, translated from JPY ￥)

Total assets, current 56,492 49,647 57,623 47,018 38,867

Current Ratio, Comparison to Industry

Honda Motor Co., Ltd. 1.35 1.09 1.12 1.23 1.16

Ratio Description The company

Selected Financial Data (USD $ in millions, translated from JPY ￥)

Cash and cash equivalents 13,713 7,417 11,575 8,464 6,279

Quick Ratio, Comparison to Industry

Honda Motor Co., Ltd. 0.91 0.64 0.73 0.80 0.74

Ratio Description The company

Selected Financial Data (USD $ in millions, translated from JPY ￥)

Cash and cash equivalents 13,713 7,417 11,575 8,464 6,279

Cash Ratio, Comparison to Industry

Honda Motor Co., Ltd. 0.33 0.16 0.22 0.22 0.19

Ratio Description The company

 Current Valuation Ratios

Current Valuation Ratios

Honda Motor Co., Ltd., current price multiples

Honda Motor Co., Ltd. Consumer Goods

Selected Financial Data

Ratios (Price Multiples)

Historical Valuation Ratios (Summary)

Honda Motor Co., Ltd., historical price multiples

Price to Earnings (P/E)

Mar 31, Mar 31, Mar 31, Mar 31,

Selected Data (USD $)

P/E Ratio, Comparison to Industry

Honda Motor Co., Ltd. 16.33 33.74 9.34 12.63 11.58

Ratio Description The company

Price to Operating Profit (P/OP)

Mar 31, Mar 31, Mar 31, Mar 31,

Selected Data (USD $)

Operating income (loss) (in millions) 4,454 2,037 10,498 7,626 7,300

P/OP Ratio, Comparison to Industry

Ratio Description The company

Price to Sales (P/S)

Mar 31, Mar 31, Mar 31, Mar 31,

Selected Data (USD $)

Revenues (in millions) 105,047 107,555 132,204 99,249 83,246

P/S Ratio, Comparison to Industry

Honda Motor Co., Ltd. 0.51 0.46 0.47 0.68 0.70

Ratio Description The company

Price to Book Value (P/BV)

Mar 31, Mar 31, Mar 31, Mar 31,

Selected Data (USD $)

P/BV Ratio, Comparison to Industry

Honda Motor Co., Ltd. 1.01 1.15 1.23 1.67 1.68

Ratio Description The company

Short-term (Operating) Activity Analysis

Honda Motor Co., Ltd., short-term (operating) activity ratios

Inventory turnover 9.17 8.05 10.01 9.37 9.56

Receivables turnover 9.71 11.72 11.75 10.50 10.29

Payables turnover 10.37 14.17 11.39 9.50 8.76

Working capital turnover 8.65 7.19 10.29 10.34 11.41

Average No. of Days

Average inventory processing period 40 45 36 39 38

Add: Average receivable collection period 38 31 31 35 35

Cash conversion cycle 42 51 35 35 32

Selected Financial Data (USD $ in millions, translated from JPY ￥)