Leadership Ratio

[pic 1]

The Current Ratio for Honda is slightly above 1 which is great.  Projections likely to slowly decline then increase once again.

 [pic 2]

The Quick Ratio for Honda is also slightly above 1.  Honda is able to pay off short-term debt very easily.  Projections likely to slowly decline as well.

[pic 3]

The Inventory Turnover Ratio is right around 10.  I expect the number to increase drastically.

[pic 4]

Days Sales Outstanding is around 32.  Future projections should show a continued decrease.

[pic 5]

Fixed Assets Turnover Ratio is just above 2.5.  Fixed Assets not really used well.  Expect the number to rise some.

[pic 6]

Total Assets Turnover Ratio is just above .75.  Honda is having a hard time generating sales.  Expect the number to rise in future years.

[pic 7]

Debt Ratio is at .62.  Future numbers should decrease some but not a lot.

[pic 8]

The Times-Interest-Earned Ratio for Honda is 68.  High safety margin, expect the number to continue to rise.

[pic 9]

Operating Margin for Honda is at .06.  Future expectations for the Margin is it should increase steadily.

[pic 10]

Profit Margin on Sales for Honda is at .06.  Honda seems to be having problems with their costs.  The number should increase in the future.

[pic 11]

Basic Earning Power Ratio is at around .05.  This ratio shows that Honda’s costs are again too high. Also expect this number to increase in the future.

[pic 12]

Return on Total Assets is at .05.  The number should continue to increase in the future.

[pic 13]

Return on Common Equity is at .13.  Number will continue to increase.

[pic 14]

Price/Earnings ratio for Honda is at about .13.  Honda shows little growth expectancy and thus their numbers will drop in the future.