Honda Financials

Copyright © 2009 Cengage Learning

FinSAS Version 2008010211

byDr. Donald V. Saftner

To Accompany

Financial Reporting and Analysis:Using Financial Accounting Information

11/eby Dr. Charles Gibson

Copyright © 2009 Cengage LearningAll rights reserved

Instructions:

Input

FinSAS: Financial Statement Analysis Spreadsheet

[email protected]

FinSAS: Financial Statement Analysis Spreadsheet allows users to input the reported data from the financial statements, notes, and other sources. FinSAS then computes the ratios found in Financial Reporting and Analysis: Using Financial Accounting Information 11/e. Using this tool, you can spend more time analyzing the statements and less time crunching the numbers. In addition to the ratios, both a vertical and horizontal analysis are performed.

Note the sheet tabs below. The following instructions use the names of those tabs as section headings. Click on a tab to see that sheet after reading the instructions below.

On the Input sheet, enter values into all appropriate cells (i.e., those with blue font). The figures in black font are calculated based on your input. By entering the Company Name, Analyst Name(s), and Most Recent Year Available in the first three input cells, those items will appear on all subsequent output sheets. They make it easy to identify any printouts you make.

mailto:[email protected]


The next two input cells (Years Available for Income Statement and Balance Sheet) are particularly important to the functioning of the model. Changing these numbers (while keeping them within the range one through five) changes the number of columns of data that are available on the Input sheet and all subsequent output sheets. In a single annual report/10K, there are often three years of income statements and two years of balance sheets. The annual report/10K you are using may have more and/or you may want to use multiple years’ worth of annual report/10Ks to increase the amount of data available to analyze. The maximum years that FinSAS can accept is five years.

Fill in all remaining input cells for which you can find data. There are many different names for the same account. You must translate the terminology used by the company to the generic terms used in FinSAS. When the detail is not needed, FinSAS requests a summary figure. For instance, on the published income statement there may be several operating expenses (e.g., wages, utilities, rent), but FinSAS only needs the sum of those, which would be entered as Operating Expenses. Be sure to read the footnotes to the financial statements and the comparative data section. Those sources include some of the information you need to complete the Input sheet. Also be sure to match key subtotals (e.g. the FinSAS total current asset should be same as the figure on the balance sheet even though the detail lines may be different.)

Be consistent in ignoring a certain number of decimal places. Many financial statements have "in thousands, except par values," "millions except share and per share amounts," or similar statements. When entering data into FinSAS, it is usually best to follow the same convention as the financial statements in choosing the number of decimal places to assume have been removed. An exception is the second statement above. Only "per share" data should be entered as dollars with no decimal places removed. Account balances and total share information should consistently have the same number of decimal places removed. If the share and account balances have a different number of decimal places removed then ratios such as "book value per share" and "operating cash flow per share" will be inaccurate.


Source of Input

Vertical Analysis

Horizontal Analysis

Ratios – avg.

This is the place to document where you found the information you entered on the previous sheet. This can be very useful for you and for anyone who reviews your work. For instance if most of it came from the company's annual report/10K, then state that at the top. Individual lines of input in FinSAS might be the sum of a few lines in the published financial statements. Indicate on this sheet how you determined the FinSAS inputs from the statements. For some of the inputs, you may have used information from the footnotes or comparative information section. Indicate that information on this sheet and include page numbers wherever possible. Of course, other sources of information should be cited.

After you insert your data, you can see the result of the vertical analysis. It compares each amount on the income statement and balance sheet with a base amount (net sales on the income statement and total assets on the balance sheet) selected from the same year.

After you insert your data, you can see the result of the horizontal analysis. It compares each amount on the income statement and balance sheet with the same amount for the oldest year available.

After you insert your data, you can see the result of the ratio analysis. For the ‘Ratio – Average’, the average of beginning of year values and end of year values is used when appropriate. Note that if you only have two years of balance sheet information, then for those ratios that use the average of two years of balance sheet information, only one year's worth of ratios can be calculated. Since it is desirable to compare the ratios across time to determine possible trends, a solution to only having one year's worth of ratios should be sought. Some possible solutions are to find additional years' worth of data and/or use the Ratio - end. sheet.


Ratios – end.

Documentation

Ratios with a negative cash flow or negative profit measure in the numerator will display #N/A, which means not available or not applicable. This makes it less likely that invalid conclusions will be made during your analysis.

You may want to determine how a certain ratio is calculated. You may do this in one of two ways. If you select the cell in which the ratio appears, then the formula for that cell appears near the top of the screen. You will then have to determine what accounts the cell refers to by looking at the Input screen. Alternatively, you can refer to the Documentation screen for the definition.

For the Ratios - end. sheet, the end of year values are used instead of the average values. The ‘*’ marks indicate the ratios for which the end of year values are used whereas the averages are used on the previous sheet. Note that the Ratios - avg. sheet is theoretically superior in that averages for balance sheet information (point in time) is compared to income statement or cash flow statements (period of time).

The Documentation sheet provides you the definitions of the ratios using the row labels of the Input sheet or other ratio results.

FinSAS Version 2008010211 InputCompany: HondaAnalyst: Edward GnatyukMost Recent Year Available: 2011 Years Available for: Income Statement (1-5) 5 Balance Sheet (1-5) 5

======================================== ========== ========== ========== ========== ==========INCOME STATEMENT 2011 2010 2009 2008 2007 ---------------------------------------- ---------- ---------- ---------- ---------- ----------Net Sales 7948095 8936867 8579174 10011241 11946987 Less: Cost of Goods Sold 5919633 6496841 6414721 7419582 8503474

---------- ---------- ---------- ---------- ----------Gross Profit 2028462 2440026 2164453 2591659 3443513

Other Operating Revenue 0 0 0 0 0 Less: Operating Expenses 1797098 1870251 1800678 2402016 2494845

---------- ---------- ---------- ---------- ----------Operating Income 231364 569775 363775 189643 948668

Less: Interest Expense 10378 8474 12552 22543 16522 (no capitalized interest)Other Income (Expenses) 36417 69247 -15025 -5366 -40511 Unusual or Infreq. Item; Gain (Loss) 0 0 0 0 0 Equity in Earnings of Assoc.; Profit (Loss) 0 0 0 0 0

---------- ---------- ---------- ---------- ----------Income before Taxes 257403 630548 336198 161734 891635

Less:Taxes Related to Operations 45921 96460 67798 24729 294425 ---------- ---------- ---------- ---------- ----------

N.I. before Min. Ern. 211482 534088 268400 137005 597210

Minority Share of Earnings (Loss) 0 0 0 0 0 ---------- ---------- ---------- ---------- ----------

N.I. before Nonrecurring Items 211482 534088 268400 137005 597210 Oper. of Discontinued Segment; Income (Loss) 0 0 0 0 0 Disposal of Discont. Segment; Gain (Loss) 0 0 0 0 0 Extraordinary Item; Gain (Loss) 0 0 0 0 0 Cum. Effect of Acct Change; Gain (Loss) 0 0 0 0 0

---------- ---------- ---------- ---------- ----------Net Income (Loss) 211482 534088 268400 137005 597210 ======================================== ========== ========== ========== ========== ==========

BALANCE SHEET 2011 2010 2009 2008 2007 ---------------------------------------- ---------- ---------- ---------- ---------- ----------ASSETSCurrent Assets: Cash 1247113 1279024 1119902 690369 1046013 Marketable Securities 0 0 0 0 0 Gross Receivables 812155 787691 883476 854214 1016949 Less: Allowance for Bad Debts 0 0 0 0 0 Net Trade Receivables 812155 787691 883476 854214 1016949 Inventories 1035779 899813 935629 1243961 1193723 Prepaid Expenses 0 0 0 0 0 Other Current Assets 1455284 1521228 1498113 1634476 1792526

---------- ---------- ---------- ---------- ----------Total Current Assets 4550331 4487756 4437120 4423020 5049211 Long-Term Assets:

3446215 3296988 3394810 3435520 3105791 Construction in Progress 0 0 0 0 0 Intangible Assets 0 0 0 0 0 Investments 623607 639932 642681 639069 0 Other Nonoperating Assets 0 0 0 0 0 Other Operating Assets 2971851 2943907 2977900 3123150 4243774

---------- ---------- ---------- ---------- ----------Total Long-Term Assets 7041673 6880827 7015391 7197739 7349565 Total Assets 11592004 11368583 11452511 11620759 12398776 LIABILITIES AND EQUITYCurrent Liabilities: Accounts Payable 942444 691520 802464 674498 1010380 Short Term Loans 1902742 2082411 1813344 2716176 2585123 Current Maturity of L.t. Debt 0 0 0 0 0 Other Current Liabilities 734573 794261 803322 846694 1061342

---------- ---------- ---------- ---------- ----------Total Current Liabilities 3579759 3568192 3419130 4237368 4656845 Long-Term Liabilities: Long-term Debt 2235001 2043240 2313035 1932637 1828159 Reserves 0 0 0 0 0 Deferred Liabilities 0 0 0 0 0 Minority Interest 125676 132937 127790 123056 141141 Redeemable Preferred 0 0 0 0 0 Other Long-term Liabilities 1437709 1376530 1440520 1518568 1407524

---------- ---------- ---------- ---------- ----------Total Long-term Liabilities 3798386 3552707 3881345 3574261 3376824 Total Liabilities 7378145 7120899 7300475 7811629 8033669 Shareholders' Equity: Preferred Equity 0 0 0 0 0 Common Equity-incl. Ret. Ern. 4402614 4449975 4328640 4007288 4523169

---------- ---------- ---------- ---------- ----------Total Equity 4402614 4449975 4328640 4007288 4523169 Total Liabilities and Equity 11780759 11570874 11629115 11818917 12556838 ======================================== ========== ========== ========== ========== ==========

Net Tangible (Fixed) Assets (other than construction in progress)

OTHER DATA 2011 2010 2009 2008 2007 ---------------------------------------- ---------- ---------- ---------- ---------- ----------Capitalized Interest 0.0 0.0 0.0 0.0 0.0 Interest Portion of Rentals 0.0 0.0 0.0 0.0 0.0 Liquidation Value of Pref. Stock 0.0 0.0 0.0 0.0 0.0 Dividends on Redeemable Pref. 0.0 0.0 0.0 0.0 0.0 Dividends on Nonredeemable Pref. 0.0 0.0 0.0 0.0 0.0 Dividends per Common Share 0.000 0.000 0.000 0.000 0.000 Total Cash Dividends -123901.0 -108402.0 -77974.0 -150565.0 -161545.0 Dil. Earn. per Sh. before Nonrec. Items 117.340 295.670 147.910 75.500 330.540 Market Price per Common Share 0.000 0.000 0.000 0.000 0.000 Tax Rate (0-1) 0.000 0.000 0.000 0.000 0.000 Common Shares Outstanding 0.0 0.0 0.0 0.0 0.0 Diluted Weighted Average Common Shares 1802.0 1806.0 1815.0 1815.0 1807.0 Cash Flow from Operations 737429.0 1070837.0 1544212.0 383641.0 1121660.0 Options: Option expense 0.0 0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 0.0 Net income bef. nonrec. items not incl. opt. exp.

FinSAS Version 2008010211 Source of InputCompany: HondaAnalyst: Edward GnatyukMost Recent Year Available: 2011Years Available for: Income Statement (1-5) 5 Balance Sheet (1-5) 5

========================================INCOME STATEMENT----------------------------------------Net SalesLess: Cost of Goods Sold

Gross Profit

Other Operating RevenueLess: Operating Expenses

Operating Income

Less: Interest Expense (no capitalized interest)Other Income (Expenses)Unusual or Infreq. Item; Gain (Loss)Equity in Earnings of Assoc.; Profit (Loss)

Income before Taxes

Less:Taxes Related to Operations

N.I. before Min. Ern.

Minority Share of Earnings (Loss)

N.I. before Nonrecurring Items Oper. of Discontinued Segment; Income (Loss)Disposal of Discont. Segment; Gain (Loss)Extraordinary Item; Gain (Loss)Cum. Effect of Acct Change; Gain (Loss)

Net Income (Loss)========================================

BALANCE SHEET----------------------------------------ASSETSCurrent Assets: Cash Marketable Securities Gross Receivables Less: Allowance for Bad Debts Net Trade Receivables Inventories Prepaid Expenses Other Current Assets

Total Current AssetsLong-Term Assets:

Construction in ProgressIntangible AssetsInvestmentsOther Nonoperating AssetsOther Operating Assets

Total Long-Term AssetsTotal AssetsLIABILITIES AND EQUITYCurrent Liabilities: Accounts Payable Short Term Loans Current Maturity of L.t. Debt Other Current Liabilities

Total Current LiabilitiesLong-Term Liabilities: Long-term Debt Reserves Deferred Liabilities Minority Interest Redeemable Preferred Other Long-term Liabilities

Total Long-term LiabilitiesTotal LiabilitiesShareholders' Equity: Preferred Equity Common Equity-incl. Ret. Ern.

Total EquityTotal Liabilities and Equity========================================


OTHER DATA----------------------------------------Capitalized InterestInterest Portion of RentalsLiquidation Value of Pref. StockDividends on Redeemable Pref.Dividends on Nonredeemable Pref.Dividends per Common ShareTotal Cash DividendsDil. Earn. per Sh. before nonrec. itemsMarket Price per Common ShareTax Rate (0-1)Common Shares OutstandingDiluted Weighted Average Common SharesCash Flow from OperationsOptions: Option expense Net income bef. nonrec. items not incl. opt. exp.

FinSAS Version 2008010211 Vertical AnalysisCompany: HondaAnalyst: Edward GnatyukMost Recent Year Available: 2011 Years Available for: Income Statement (1-5) 5 Balance Sheet (1-5) 5

======================================== ========== ========== ========== ========== ==========INCOME STATEMENT 2011 2010 2009 2008 2007---------------------------------------- ---------- ---------- ---------- ---------- ----------Net Sales 100.00% 100.00% 100.00% 100.00% 100.00%Less: Cost of Goods Sold 74.48% 72.70% 74.77% 74.11% 71.18%

---------- ---------- ---------- ---------- ----------Gross Profit 25.52% 27.30% 25.23% 25.89% 28.82%

Other Operating Revenue 0.00% 0.00% 0.00% 0.00% 0.00%Less: Operating Expenses 22.61% 20.93% 20.99% 23.99% 20.88%

---------- ---------- ---------- ---------- ----------Operating Income 2.91% 6.38% 4.24% 1.89% 7.94%

Less: Interest Expense 0.13% 0.09% 0.15% 0.23% 0.14% (no capitalized interest)Other Income (Expenses) 0.46% 0.77% -0.18% -0.05% -0.34%Unusual or Infreq. Item; Gain (Loss) 0.00% 0.00% 0.00% 0.00% 0.00%Equity in Earnings of Assoc.; Profit (Loss) 0.00% 0.00% 0.00% 0.00% 0.00%

---------- ---------- ---------- ---------- ----------Income before Taxes 3.24% 7.06% 3.92% 1.62% 7.46%

Less:Taxes Related to Operations 0.58% 1.08% 0.79% 0.25% 2.46%---------- ---------- ---------- ---------- ----------

N.I. before Min. Ern. 2.66% 5.98% 3.13% 1.37% 5.00%

Minority Share of Earnings (Loss) 0.00% 0.00% 0.00% 0.00% 0.00%---------- ---------- ---------- ---------- ----------

N.I. before Nonrecurring Items 2.66% 5.98% 3.13% 1.37% 5.00% Oper. of Discontinued Segment; Income (Loss) 0.00% 0.00% 0.00% 0.00% 0.00%Disposal of Discont. Segment; Gain (Loss) 0.00% 0.00% 0.00% 0.00% 0.00%Extraordinary Item; Gain (Loss) 0.00% 0.00% 0.00% 0.00% 0.00%Cum. Effect of Acct Change; Gain (Loss) 0.00% 0.00% 0.00% 0.00% 0.00%

---------- ---------- ---------- ---------- ----------Net Income (Loss) 2.66% 5.98% 3.13% 1.37% 5.00%======================================== ========== ========== ========== ========== ==========

BALANCE SHEET 2011 2010 2009 2008 2007---------------------------------------- --------- --------- --------- --------- ---------ASSETSCurrent Assets: Cash 10.76% 11.25% 9.78% 5.94% 8.44% Marketable Securities 0.00% 0.00% 0.00% 0.00% 0.00% Gross Receivables 7.01% 6.93% 7.71% 7.35% 8.20% Less: Allowance for Bad Debts 0.00% 0.00% 0.00% 0.00% 0.00% Net Trade Receivables 7.01% 6.93% 7.71% 7.35% 8.20% Inventories 8.94% 7.91% 8.17% 10.70% 9.63% Prepaid Expenses 0.00% 0.00% 0.00% 0.00% 0.00% Other Current Assets 12.55% 13.38% 13.08% 14.07% 14.46%

--------- --------- --------- --------- ---------Total Current Assets 39.25% 39.48% 38.74% 38.06% 40.72%Long-Term Assets:

29.73% 29.00% 29.64% 29.56% 25.05%Construction in Progress 0.00% 0.00% 0.00% 0.00% 0.00%Intangible Assets 0.00% 0.00% 0.00% 0.00% 0.00%Investments 5.38% 5.63% 5.61% 5.50% 0.00%Other Nonoperating Assets 0.00% 0.00% 0.00% 0.00% 0.00%Other Operating Assets 25.64% 25.90% 26.00% 26.88% 34.23%

--------- --------- --------- --------- ---------Total Long-Term Assets 60.75% 60.52% 61.26% 61.94% 59.28%Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%LIABILITIES AND EQUITYCurrent Liabilities: Accounts Payable 8.13% 6.08% 7.01% 5.80% 8.15% Short Term Loans 16.41% 18.32% 15.83% 23.37% 20.85% Current Maturity of L.t. Debt 0.00% 0.00% 0.00% 0.00% 0.00% Other Current Liabilities 6.34% 6.99% 7.01% 7.29% 8.56%

--------- --------- --------- --------- ---------Total Current Liabilities 30.88% 31.39% 29.85% 36.46% 37.56%Long-Term Liabilities: Long-term Debt 19.28% 17.97% 20.20% 16.63% 14.74% Reserves 0.00% 0.00% 0.00% 0.00% 0.00% Deferred Liabilities 0.00% 0.00% 0.00% 0.00% 0.00% Minority Interest 1.08% 1.17% 1.12% 1.06% 1.14% Redeemable Preferred 0.00% 0.00% 0.00% 0.00% 0.00% Other Long-term Liabilities 12.40% 12.11% 12.58% 13.07% 11.35%

--------- --------- --------- --------- ---------Total Long-term Liabilities 32.77% 31.25% 33.89% 30.76% 27.24%Total Liabilities 63.65% 62.64% 63.75% 67.22% 64.79%Shareholders' Equity: Preferred Equity 0.00% 0.00% 0.00% 0.00% 0.00% Common Equity-incl. Ret. Ern. 37.98% 39.14% 37.80% 34.48% 36.48%

--------- --------- --------- --------- ---------Total Equity 37.98% 39.14% 37.80% 34.48% 36.48%Total Liabilities and Equity 101.63% 101.78% 101.54% 101.71% 101.27%======================================== ========== ========== ========== ========== ==========


FinSAS Version 2008010211 Horizontal AnalysisCompany: HondaAnalyst: Edward GnatyukMost Recent Year Available: 2011 Years Available for: Income Statement (1-5) 5 Balance Sheet (1-5) 5

======================================== ========== ========== ========== ========== ==========INCOME STATEMENT 2011 2010 2009 2008 2007---------------------------------------- ---------- ---------- ---------- ---------- ----------Net Sales 66.53% 74.80% 71.81% 83.80% 100.00%Less: Cost of Goods Sold 69.61% 76.40% 75.44% 87.25% 100.00%

---------- ---------- ---------- ---------- ----------Gross Profit 58.91% 70.86% 62.86% 75.26% 100.00%

Other Operating Revenue #N/A #N/A #N/A #N/A #N/ALess: Operating Expenses 72.03% 74.96% 72.18% 96.28% 100.00%

---------- ---------- ---------- ---------- ----------Operating Income 24.39% 60.06% 38.35% 19.99% 100.00%

Less: Interest Expense 62.81% 51.29% 75.97% 136.44% 100.00% (no capitalized interest)Other Income (Expenses) -89.89% -170.93% 37.09% 13.25% 100.00%Unusual or Infreq. Item; Gain (Loss) #N/A #N/A #N/A #N/A #N/AEquity in Earnings of Assoc.; Profit (Loss) #N/A #N/A #N/A #N/A #N/A

---------- ---------- ---------- ---------- ----------Income before Taxes 28.87% 70.72% 37.71% 18.14% 100.00%

Less:Taxes Related to Operations 15.60% 32.76% 23.03% 8.40% 100.00%---------- ---------- ---------- ---------- ----------

N.I. before Min. Ern. 35.41% 89.43% 44.94% 22.94% 100.00%

Minority Share of Earnings (Loss) #N/A #N/A #N/A #N/A #N/A---------- ---------- ---------- ---------- ----------

N.I. before Nonrecurring Items 35.41% 89.43% 44.94% 22.94% 100.00% Oper. of Discontinued Segment; Income (Loss) #N/A #N/A #N/A #N/A #N/ADisposal of Discont. Segment; Gain (Loss) #N/A #N/A #N/A #N/A #N/AExtraordinary Item; Gain (Loss) #N/A #N/A #N/A #N/A #N/ACum. Effect of Acct Change; Gain (Loss) #N/A #N/A #N/A #N/A #N/A

---------- ---------- ---------- ---------- ----------Net Income (Loss) 35.41% 89.43% 44.94% 22.94% 100.00%======================================== ========== ========== ========== ========== ==========

BALANCE SHEET 2011 2010 2009 2008 2007---------------------------------------- ---------- ---------- ---------- ---------- ----------ASSETSCurrent Assets: Cash 119.23% 122.28% 107.06% 66.00% 100.00% Marketable Securities #N/A #N/A #N/A #N/A #N/A Gross Receivables 79.86% 77.46% 86.88% 84.00% 100.00% Less: Allowance for Bad Debts #N/A #N/A #N/A #N/A #N/A Net Trade Receivables 79.86% 77.46% 86.88% 84.00% 100.00% Inventories 86.77% 75.38% 78.38% 104.21% 100.00% Prepaid Expenses #N/A #N/A #N/A #N/A #N/A Other Current Assets 81.19% 84.87% 83.58% 91.18% 100.00%

---------- ---------- ---------- ---------- ----------Total Current Assets 90.12% 88.88% 87.88% 87.60% 100.00%Long-Term Assets:

110.96% 106.16% 109.31% 110.62% 100.00%Construction in Progress #N/A #N/A #N/A #N/A #N/AIntangible Assets #N/A #N/A #N/A #N/A #N/AInvestments #N/A #N/A #N/A #N/A #N/AOther Nonoperating Assets #N/A #N/A #N/A #N/A #N/AOther Operating Assets 70.03% 69.37% 70.17% 73.59% 100.00%

---------- ---------- ---------- ---------- ----------Total Long-Term Assets 95.81% 93.62% 95.45% 97.93% 100.00%Total Assets 93.49% 91.69% 92.37% 93.73% 100.00%LIABILITIES AND EQUITYCurrent Liabilities: Accounts Payable 93.28% 68.44% 79.42% 66.76% 100.00% Short Term Loans 73.60% 80.55% 70.15% 105.07% 100.00% Current Maturity of L.t. Debt #N/A #N/A #N/A #N/A #N/A Other Current Liabilities 69.21% 74.84% 75.69% 79.78% 100.00%

---------- ---------- ---------- ---------- ----------Total Current Liabilities 76.87% 76.62% 73.42% 90.99% 100.00%Long-Term Liabilities: Long-term Debt 122.25% 111.76% 126.52% 105.71% 100.00% Reserves #N/A #N/A #N/A #N/A #N/A Deferred Liabilities #N/A #N/A #N/A #N/A #N/A Minority Interest 89.04% 94.19% 90.54% 87.19% 100.00% Redeemable Preferred #N/A #N/A #N/A #N/A #N/A Other Long-term Liabilities 102.14% 97.80% 102.34% 107.89% 100.00%

---------- ---------- ---------- ---------- ----------Total Long-term Liabilities 112.48% 105.21% 114.94% 105.85% 100.00%Total Liabilities 91.84% 88.64% 90.87% 97.24% 100.00%Shareholders' Equity: Preferred Equity #N/A #N/A #N/A #N/A #N/A Common Equity-incl. Ret. Ern. 97.33% 98.38% 95.70% 88.59% 100.00%

---------- ---------- ---------- ---------- ----------Total Equity 97.33% 98.38% 95.70% 88.59% 100.00%Total Liabilities and Equity 93.82% 92.15% 92.61% 94.12% 100.00%======================================== ========== ========== ========== ========== ==========


FinSAS Version 2008010211 Ratios - averageCompany: HondaAnalyst: Edward GnatyukMost Recent Year Available: 2011 Years Available for: Income Statement (1-5) 5 Balance Sheet (1-5) 5

---------------------------------------- ---------- ---------- ---------- ---------- ----------LIQUIDITY 2011 2010 2009 2008 2007

---------------------------------------- ---------- ---------- ---------- ---------- ----------Days' Sales in Receivables 37.30 32.17 37.59 31.14 31.07 Accounts Receivable Turnover 9.94 10.70 9.87 10.70 23.50 A/R Turnover in Days 36.73 34.13 36.96 34.11 #N/A

Days' Sales in Inventory 63.87 50.55 53.24 61.20 51.24 Inventory Turnover 6.12 7.08 5.89 6.09 14.25 Inventory Turnover in Days 59.67 51.56 62.01 59.96 #N/A

Operating Cycle 96.41 85.69 98.97 94.07 #N/AWorking Capital 970,572 919,564 ### 185,652 392,366 Current Ratio 1.27 1.26 1.30 1.04 1.08

Acid Test 0.58 0.58 0.59 0.36 0.44 Cash Ratio 0.35 0.36 0.33 0.16 0.22 Sales to Working Capital 8.41 9.22 14.26 34.64 60.90

Cash Flow/Cur. Mat. of Debt & NP 0.39 0.51 0.85 0.14 0.43

---------------------------------------- ---------- ---------- ---------- ---------- ----------LONG-TERM DEBT-PAYING ABILITY 2011 2010 2009 2008 2007

---------------------------------------- ---------- ---------- ---------- ---------- ----------Times Interest Earned 25.80 75.41 27.78 8.17 54.97 Fixed Charge Coverage 25.80 75.41 27.78 8.17 54.97 Debt Ratio 63.65% 62.64% 63.75% 67.22% 64.79%

Debt/Equity 167.59% 160.02% 168.66% 194.94% 177.61%Debt to Tangible Net Worth 167.59% 160.02% 168.66% 194.94% 177.61%Cash Flow/Total Debt 9.99% 15.04% 21.15% 4.91% 13.96%

---------------------------------------- ---------- ---------- ---------- ---------- ----------PROFITABILITY 2011 2010 2009 2008 2007

---------------------------------------- ---------- ---------- ---------- ---------- ----------Net Profit Margin 2.66% 5.98% 3.13% 1.37% 5.00%Total Asset Turnover 0.69 0.78 0.74 0.83 1.93 Return on Assets 1.84% 4.68% 2.33% 1.14% 0.10

Operating Income Margin 2.91% 6.38% 4.24% 1.89% 7.94%Operating Asset Turnover 0.73 0.83 0.79 0.86 1.93 Return on Operating Assets 2.13% 5.29% 3.34% 1.62% 0.15

Sales to Fixed Assets 2.36 2.67 2.51 3.06 7.69 Return on Investment 2.74% 6.69% 3.56% 2.06% 0.16 Return on Total Equity 4.78% 12.17% 6.44% 3.21% 0.26

Return on Common Equity 4.78% 12.17% 6.44% 3.21% 0.26 Gross Profit Margin 25.52% 27.30% 25.23% 25.89% 28.82%

---------------------------------------- ---------- ---------- ---------- ---------- ----------INVESTOR ANALYSIS 2011 2010 2009 2008 2007

---------------------------------------- ---------- ---------- ---------- ---------- ----------Degree of Financial Leverage 1.04 1.01 1.04 1.14 1.02 Earnings per Share 117.34 295.67 147.91 75.50 330.54 Price/Earnings Ratio 0.00 0.00 0.00 0.00 0.00

Percentage of Earnings Retained 158.59% 120.30% 129.05% 209.90% 127.05%Dividend Payout 0.00% 0.00% 0.00% 0.00% 0.00%Dividend Yield #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Book Value per Share #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!Materiality of Options #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!Oper. Cash Flow per Share 409.23 592.93 850.81 211.37 620.73

Oper. Cash Flow/Cash Dividends -5.95 -9.88 -19.80 -2.55 -6.94 Year-end Market Price 0.00 0.00 0.00 0.00 0.00 ======================================== ========== ========== ========== ========== ==========

FinSAS Version 2008010211 Ratios - endingCompany: HondaAnalyst: Edward GnatyukMost Recent Year Available: 2011 Years Available for: Income Statement (1-5) 5 Balance Sheet (1-5) 5

* EOY values instead of averages---------------------------------------- ---------- ---------- ---------- ---------- ----------

LIQUIDITY 2011 2010 2009 2008 2007 ---------------------------------------- ---------- ---------- ---------- ---------- ----------Days' Sales in Receivables 37.30 32.17 37.59 31.14 31.07 * Accounts Receivable Turnover 9.79 11.35 9.71 11.72 11.75 * A/R Turnover in Days 37.30 32.17 37.59 31.14 31.07

Days' Sales in Inventory 63.87 50.55 53.24 61.20 51.24 * Inventory Turnover 5.72 7.22 6.86 5.96 7.12 * Inventory Turnover in Days 63.87 50.55 53.24 61.20 51.24

* Operating Cycle 101.16 82.72 90.83 92.34 82.31 Working Capital 970,572 919,564 ### 185,652 392,366 Current Ratio 1.27 1.26 1.30 1.04 1.08

Acid Test 0.58 0.58 0.59 0.36 0.44 Cash Ratio 0.35 0.36 0.33 0.16 0.22 * Sales to Working Capital 8.19 9.72 8.43 53.92 30.45

Cash Flow/Cur. Mat. of Debt & NP 0.39 0.51 0.85 0.14 0.43

---------------------------------------- ---------- ---------- ---------- ---------- ----------LONG-TERM DEBT-PAYING ABILITY 2011 2010 2009 2008 2007

---------------------------------------- ---------- ---------- ---------- ---------- ----------Times Interest Earned 25.80 75.41 27.78 8.17 54.97 Fixed Charge Coverage 25.80 75.41 27.78 8.17 54.97 Debt Ratio 63.65% 62.64% 63.75% 67.22% 64.79%

Debt/Equity 167.59% 160.02% 168.66% 194.94% 177.61%Debt to Tangible Net Worth 167.59% 160.02% 168.66% 194.94% 177.61%Cash Flow/Total Debt 9.99% 15.04% 21.15% 4.91% 13.96%

---------------------------------------- ---------- ---------- ---------- ---------- ----------PROFITABILITY 2011 2010 2009 2008 2007

---------------------------------------- ---------- ---------- ---------- ---------- ----------Net Profit Margin 2.66% 5.98% 3.13% 1.37% 5.00%* Total Asset Turnover 0.69 0.79 0.75 0.86 0.96 * Return on Assets 1.82% 4.70% 2.34% 1.18% 4.82%

Operating Income Margin 2.91% 6.38% 4.24% 1.89% 7.94%* Operating Asset Turnover 0.72 0.83 0.79 0.91 0.96 * Return on Operating Assets 2.11% 5.31% 3.37% 1.73% 7.65%

* Sales to Fixed Assets 2.31 2.71 2.53 2.91 3.85 * Return on Investment 2.71% 6.78% 3.42% 2.10% 7.77%* Return on Total Equity 4.80% 12.00% 6.20% 3.42% 13.20%

* Return on Common Equity 4.80% 12.00% 6.20% 3.42% 13.20%Gross Profit Margin 25.52% 27.30% 25.23% 25.89% 28.82%

---------------------------------------- ---------- ---------- ---------- ---------- ----------INVESTOR ANALYSIS 2011 2010 2009 2008 2007

---------------------------------------- ---------- ---------- ---------- ---------- ----------Degree of Financial Leverage 1.04 1.01 1.04 1.14 1.02 Earnings per Share 117.34 295.67 147.91 75.50 330.54 Price/Earnings Ratio - - - - -

Percentage of Earnings Retained 158.59% 120.30% 129.05% 209.90% 127.05%Dividend Payout 0.00% 0.00% 0.00% 0.00% 0.00%Dividend Yield #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Book Value per Share #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!Materiality of Options #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!Oper. Cash Flow per Share 409.23 592.93 850.81 211.37 620.73

Oper. Cash Flow/Cash Dividends (5.95) (9.88) (19.80) (2.55) (6.94)Year-end Market Price 0.00 0.00 0.00 0.00 0.00 ======================================== ========== ========== ========== ========== ==========


FinSAS Version 2008010211 Documentation-

LIQUIDITY-

Days' Sales in Receivables

Accounts Receivable Turnover

A/R Turnover in Days

Days' Sales in Inventory

Inventory Turnover

Inventory Turnover in Days

Operating Cycle A/R Turnover in Days + Inventory Turnover in Days

Working Capital Total Current Assets - Total Current Liabilities

Current Ratio

Acid Test

Cash Ratio

Sales to Working Capital

Cash Flow/Cur. Mat. of Debt & NP

Gross Receivables---------------------------

Net Sales / 365

Net Sales----------------------------------------Average (Gross Receivables)

365--------------------------------------------Accounts Receivable Turnover

Ending Inventory-----------------------------------Cost of Goods Sold / 365

Cost of Goods Sold---------------------------------

Average (Inventories)

365--------------------------------------

Inventory Turnover

Total Current Assets----------------------------------Total Current Liabilities

Cash + Marketable Securities + Net Trade Receivables---------------------------------------------------------------------------------

Total Current Liabilities

Cash + Marketable Securities---------------------------------------------

Total Current Liabilities

Net Sales------------------------------------Average (Working Capital)

Cash Flow from Operations---------------------------------------------------------------------

Short Term Loans + Current Maturity of L.t. Debt


-LONG-TERM DEBT-PAYING ABILITY

-

Times Interest Earned

Fixed Charge Coverage

Debt Ratio

Debt/Equity

Debt to Tangible Net Worth

Cash Flow/Total Debt

Income before Taxes + Interest Expense (no capitalized interest) - Equity in Earnings of Assoc.; Profit (Loss)--------------------------------------------------------------------------------------------------------------------------------------------------------

Interest Expense (no capitalized interest) + Capitalized Interest

Income before Taxes + Interest Expense (no capitalized interest) - Equity in Earnings of Assoc.; Profit (Loss) + Interest Portion of Rentals-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Interest Expense (no capitalized interest) + Capitalized Interest + Interest Portion of Rentals

Total Liabilities--------------------------------

Total Assets

Total Liabilities------------------------

Total Equity

Total Liabilities-----------------------------------------------

Total Equity - Intangible Assets

Cash Flow from Operations----------------------------------------

Total Liabilities


-PROFITABILITY

-

Net Profit Margin

Total Asset Turnover

Return on Assets

Operating Income Margin

Operating Asset Turnover

Return on Operating Assets

Sales to Fixed Assets

Return on Investment

Return on Total Equity

Return on Common Equity

Gross Profit Margin

N.I. before Min. Ern. – Equity in Earnings of Assoc.; Profit (Loss)---------------------------------------------------------------------------------------

Net Sales

Net Sales---------------------------------Average (Total Assets)

N.I. before Min. Ern.-----------------------------

Average (Total Assets)

Operating Income-------------------------

Net Sales

Net Sales--------------------------------------------------------------------------------------------------------------------------------------------------------------

Average (Total Assets - Construction in Progress - Intangible Assets - Investments - Other Nonoperating Assets)

Operating Income--------------------------------------------------------------------------------------------------------------------------------------------------------------

Average (Total Assets - Construction in Progress - Intangible Assets - Investments - Other Nonoperating Assets)

Net Sales-------------------------------------------------------------------------------------------------------Average (Net Tangible (Fixed) Assets (other than construction in progress))

N.I. before Min. Ern. + {(1- Tax Rate) * Interest Expense (no capitalized interest)}------------------------------------------------------------------------------------------------

Average (Total Liabilities and Equity - Total Current Liabilities)

N.I. before Nonrecurring Items - Dividends on Redeemable Pref.----------------------------------------------------------------------------------------

Average (Total Equity)

N.I. before Nonrecurring Items - Dividends on Redeemable Pref. - Dividends on Nonredeemable Pref.---------------------------------------------------------------------------------------------------------------------------------------------

Average (Common Equity-incl. Ret. Ern.)

Gross Profit--------------------

Net Sales


-INVESTOR ANALYSIS

-

Degree of Financial Leverage

Earnings per Share Dil. Earn. per Sh. before Nonrec. Items

Price/Earnings Ratio

Percentage of Earnings Retained

Dividend Payout

Dividend Yield

Book Value per Share

Materiality of Options

Oper. Cash Flow per Share

Oper. Cash Flow/Cash Dividends

Year-end Market Price Market Price per Common Share

=

Income before Taxes + Interest Expense (no capitalized interest) - Equity in Earnings of Assoc.; Profit (Loss) ------------------------------------------------------------------------------------------------------------------------------------------------------

Income before Taxes - Equity in Earnings of Assoc.; Profit (Loss)

Market Price per Common Share----------------------------------------------

Dil. Earn. per Sh. before Nonrec. Items

N.I. before Nonrecurring Items - Total Cash Dividends---------------------------------------------------------

N.I. before Nonrecurring Items

Dividends per Common Share----------------------------------------------

Dil. Earn. per Sh. before Nonrec. Items

Dividends per Common Share----------------------------------------------Market Price per Common Share

Common Equity-incl. Ret. Ern.---------------------------------------------

Common Shares Outstanding

Option expense---------------------------------------------------------------Net income bef. nonrec. items not incl. opt. exp.

Cash Flow from Operations - Dividends on Redeemable Pref. - Dividends on Nonredeemable Pref.---------------------------------------------------------------------------------------------------------------------------------------

Diluted Weighted Average Common Shares

Cash Flow from Operations---------------------------------------

Total Cash Dividends

Documents

Honda Financials