Honda Financial Performance from Time to Time-Honda is a multinational manufacturer of automobiles, motorcycles, and power equipment with miscellaneous products. Historically, this company was founded in September 1948 by Soichiro Honda and Takeo Fujisawa. Nowadays, this company has a central office in Minami-Aoyama, Minato-ku, Tokyo.
Along with the development of the business of the company, Honda has a capital of around eighty-six billion yen with a number of associates of around 211,374 across the world. Until March 31st, 2021, this company can sell 25.30 million units of products. Some of them are 15.13 million Motorcycles 4.5 million Automobiles and 5.6 million units of power products.
The Assets, Liabilities, and Equities of Honda
| Years | Assets | Liabilities | Equities |
|---|---|---|---|
| Million Yen | Million Yen | Million Yen | |
| 2012 | 11,787,599 | 7,269,697 | 4,517,902 |
| 2013 | 13,635,357 | 8,437,615 | 5,197,742 |
| 2014 | 16,048,438 | 9,489,510 | 6,558,928 |
| 2015 | 18,425,837 | 11,043,016 | 7,382,821 |
| 2016 | 18,229,294 | 11,197,506 | 7,031,788 |
| 2017 | 18,958,123 | 11,388,497 | 7,569,626 |
| 2018 | 19,349,164 | 11,115,069 | 8,234,095 |
| 2019 | 20,419,122 | 11,853,332 | 8,565,790 |
| 2020 | 20,461,465 | 12,175,442 | 8,286,023 |
| 2021 | 21,921,030 | 12,548,191 | 9,372,839 |
| Source : Honda Motor Co Annual Report, 2012-2021 | |||
Financially, based on the financial structure of the company, in 2012, the company has 11,787 billion yen of assets with liabilities of around 7,269 billion yen. In 2021, it becomes 21,921 billion yen of assets and Liabilities around 9,372 billion yen.
Based on the Debt-to-Equity ratio (DER) and Debt to Assets ratio (DAR), the average value of both is 0.596 and 1.481. The average value of DAR from 2012 to 2021 is 0.59. It showed that the percentage of liabilities is 59% of assets. Meanwhile, the value of DER is 1.48. it showed that the value of liabilities is 148% of the equities. The less value of DER and DAR describes the strongest of the financial conditions because it showed that the company has few debts. The Debt can inhibit the company to expand their business.
The Revenue and Net Income of Honda
| Years | Revenue | Net Income |
|---|---|---|
| Million Yen | Million Yen | |
| 2012 | 7,948,095 | 222,074 |
| 2013 | 9,877,947 | 392,638 |
| 2014 | 12,506,091 | 665,911 |
| 2015 | 13,328,099 | 561,098 |
| 2016 | 14,601,151 | 406,358 |
| 2017 | 13,999,200 | 679,394 |
| 2018 | 15,361,146 | 1,128,639 |
| 2019 | 15,888,617 | 676,286 |
| 2020 | 14,931,009 | 509,932 |
| 2021 | 13,170,519 | 695,444 |
| Source : Honda Motor Co Annual Report, 2012-2021 | ||
In the Financial performance from 2012 to 2021, this company always record positive ways. in 2012, they gain revenue of around 7,948 billion yen with a net income of around 222 billion yen. In 2021, the revenue becomes 13,170 billion yen with a net income of around 695 billion yen.
Based on the Net Profit Margin (NPM), Return on Assets (ROA), and Return on Equity (ROE), this company has a stable value. The average value of Net Profit Margin (NPM) is 0.044. This value means that the percentage of net income is 4% of Revenue. In the other parameters, the value of ROA and ROE are 0.033 and 0.08. This value means that the percentage of net income is 3.3% from Assets and 8% from Equity. Overall, The Value of NPM, ROA, and ROE can show the efficiency of the company doing their business. The bigger value of the ratio of NPM, ROA, and ROE, the more efficient of the company is to do the business.
Bibliography of Honda Financial Performance from Time to Time
Honda. 2022. Financial Data. Accessed via https://global.honda/investors/financial_data.html?from=navi_header on April 25th, 2022
Wikipedia. 2022. Honda. Accessed via https://en.wikipedia.org/wiki/Honda on April 25th, 2022