Financial Analysis of Honda - 4439 Words

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†¦show more content†¦Hondas sales went up nearly 20 percent from the same month last year. The Civic and the Accord were in the top five category of sales.[14][15] Analysts have put this down to two main reasons. First off, Hondas product line consists of mainly small to mid-size , highly fuel-efficient automobiles. Secondly, over the last decade, Honda has designed its production plants to be flexible, so that they can be easily re-equipped to manufacture any Honda model that may currently be in high demand. Nevertheless, Honda, Nissan, and Toyota, were still not impervious to the global economic recession of 2008, as these corporations trimmed down their profitability prediction. The economic crisis has had a domino effect on other important players in the automobile sectors as well.[16][17] In November 2009 the Nihon Keizai Shinbun stated that Honda Motor shipments have dropped to 64.1%.[18] 5 At the 2008 Beijing Auto Exhibition, Honda showcased the Li Nian (concept or idea) 5-door hatchback and stated that they were looking to develop a basic brand solely for the Chinese market akin to Toyotas Scion brand in the USA.[19] The brand would be built by a 50-50 joint-venture created in 2007 with Guangzhou Automobile Industry Group. Accounting Protocol Honda assumed the provision of FASB Interpretation No. 48 â€Å"Accounting for Uncertainty in Income Taxes† (FIN 48) in April 1, 2007. ThisShow MoreRelatedToyoto and Honda Financial Statement Analysis4773 Words   |  20 Pages | |Financial Statement Analysis Project | | | | | |Honda Motor Co., ltd Read MoreFinancial Analysis: Toyota, Honda, and Nissan2862 Words   |  12 PagesFinancial analysis of Toyota, Honda, and Nissan Toyota analysis in comparison to Honda and Nissan Toyota has hit the headlines over the years over the defects in several of their models which has sent it on a public relations and safety campaigns relating to its vehicles. Notably is the Toyota safety campaign in North America for certain models of Toyota as well as Lexus brands concerning the floor mat entrapment of accelerator pedals, later on it extended to other models in November 2009Read MoreAssignment Case Study Honda1227 Words   |  5 PagesAssignment Case study Honda Marketing [pic] Introduction: This individual assignment will be assessed by means of a 3,500  ± 10% word report. The assignment has been designed to allow you to develop and use your knowledge and skills in understanding key strategic issues relating to the Global Automobile Industry. You will be required to apply the strategic concepts and analytical techniques studied in this module. All the learningRead MoreHonda Motors : The World Largest Manufacturer Of Motorcycles1283 Words   |  6 PagesHonda Motors is a Japanese multinational company that deals with the manufacturing and marketing of automobiles, power equipment and motorcycle. The public traded company is the world largest manufacturer of motorcycles since 1959 and trades is share in the New York Stock Exchange and Tokyo Stock Exchange. Honda Motors also trades its shares in Nagoya, Kyoto, Osaka, Switzerland, London and Paris. The company was founded by Soichiro Honda and its headquarter is located in Minato, Tokyo, Japan. HondaRead MoreTechnologic al Innovations : Honda Motor Company1499 Words   |  6 Pagesexhibits growth through technology is Honda Motor Company. Honda is a leading motorcycle, automobile, aircraft and engine manufacturing company that originated in Japan in 1946. Creator, Soichiro Honda, created this company with the intent of being an automotive parts manufacturer, but gradually expanded the company into other services. Using labor intensive business strategies including localizing firms, conventional engineering and factory flexibility, Honda was able to gradually expand itself toRead MoreCase Analysis: Harley- Davidson Inc.1252 Words   |  6 PagesCase Analysis: Harley- Davidson Inc. This case study analyzes the differentiation strategy adopted by Harley-Davidson Inc. to differentiate itself from the competition. Further, it will address the issues and challenges faced by Harley- Davidson Inc. due to changing demographics and financial turmoil. And last but not least the case study will give an idea of what strategies Harley- Davidson Inc. could apply in the future so that it could sustain and enhance its competitive position. Read MoreCase Analysis: Harley- Davidson Inc.1268 Words   |  6 PagesCase Analysis: Harley- Davidson Inc. This case study analyzes the differentiation strategy adopted by Harley-Davidson Inc. to differentiate itself from the competition. Further, it will address the issues and challenges faced by Harley- Davidson Inc. due to changing demographics and financial turmoil. And last but not least the case study will give an idea of what strategies Harley- Davidson Inc. could apply in the future so that it could sustain and enhance its competitive position. ThereRead MoreRisk Analysis. A Risk Analysis Was Prepared As Part Of1084 Words   |  5 PagesRisk Analysis A risk analysis was prepared as part of the review of Ford as a potential investment opportunity. The Capital Asset Pricing Model defines â€Å"the relevant risk of an individual stock as the amount of risk that the stock contributes to the market portfolio† (Brigham Ehrhardt, 2014, p. 250). The risk of a stock can be measured by its beta. The higher the beta of a stock, the higher the risk. Stocks with a beta below one are less volatile than the market while stocks with a beta of greaterRead MorePorters Five Forces Analysis done on Harley Davidson1159 Words   |  5 Pagesï » ¿Competitor Analysis Harley Davidson remains as a dominant force in the heavy weight motorcycle industry; upholding 50% share in the heavy weight motorcycles. This year they celebrate their 110th Anniversary proudly as the only major motorcycle manufacturer to completely focus on motorcycles. (Melief, Bundgaard Hathaway, 2006) Other major players in the Motorcycle Industry are, Honda, Yamaha, Suzuki that also have their other major product lines inclusive of cars, watercraft, musical equipmentRead MoreOBU ACCA BSC Hons RAP on Topic 8 - The Business and Financial Performance of an Organization over a three year period8767 Words   |  36 PagesResearch and Analysis Project 1 Were committed to providing 100% plagiarism free academic assignments i.e. Course work, Homework assignments, thesis, dissertations, HND/HNC Business assignments, Oxford Brookes (OBU) BSC Hons Applied Accounting ACCA Thesis (RAP, SLS, PPT), Essays and Term/Research papers etc. Pay in instalments and that too after you receive the first draft. Please visit and like our Facebook page www.facebook.com/assignmentwritingservices/ to avail our special discount packages