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The university of faislabad

HONDA MOTORS COMPANY


Introduction
The Honda Motor Company was founded by Soichiro. Honda in October 1946. He was very
interested in automobiles from a small age so he used to tune cars and enter them into races using
his friend's garage. As he grew up he decided to be in the automobile industry. Soon his
efforts paid off and he got a contract for supplying piston rings for major car maker
Toyota. But unfortunately he lost the contract as his products did not match the req uired
quality. So he went to various factories in Japan looking for ways to improve the quality of
the engines by making efficient piston rings

Toyata motors company


Introduction
Toyota Motor Corporation began in 1933 as a division of the Toyoda Automatic Loom Works,
Ltd. (laterToyota Industries Corporation, now a subsidiary), a Japanese manufacturer founded
by Toyoda Sakichi. Its first production car, the Model AA sedan, was released in 1936. Ever
since its founding, Toyota has sought to contribute to a more prosperous society through the
manufacture of automobiles, operating its business with a focus on vehicle production and sales.
To celebrate its 75th anniversary, the company has compiled 75 Years of Toyota. Have a look at
the company's progress over the last three-quarter century.
Table of content
Honda motors balance sheet
Period ending 2015 (000) 2014 (000) 2013 (000)
Cash and cash 15,636,00 12,272,000 11,590,000
equivalent
Recievables 24,492,000 24,345,000 25,94,000
Inventory 11,685,000 12,494,000 12,961,000
Short term invesrtment 0 0 0

Other current assets 3,720,000 3,389,000 3387,000


Total current assets 55,533,000 52,501,000 53,883,000
Long term investment 32698,000 35019,000 38532,000

Fixed assets 60,658,000 54408,000 50968,000

goodwill 0 0 0

Intangiable assets 7340,000 6333,000 6504,000

Other assets 4352,000 4233,000 4267,000

Deferred assets charges 1609,000 1151,000 1680,000


Total assets 162,190,000 153,645,000 155,833,000
Current
liabilities
Account payable 13866,000 13248,000 14357,000

Other current liab. 34804,000 30955,000 31784,000

Total current liability 48671,000 44203,000 46141,000

Other liabilities 43929,000 41672,000 39778,000


Deferred liab.charges 7027,000 6207,000 6216,000
Misc.stock 0 0 0
Minority intersest 2405,000 2286,000 2169,000

Total liabilities 102,031,000 94369,000 94314,000


Honda motors balance sheet

Income statement
Period Ending: 3/31/2015 3/31/2014 3/31/2013

Total Revenue $129,909,000 $111,137,000 $121,436,000

Cost of Revenue $100,827,000 $86,144,000 $93,126,000

Gross Profit $29,083,000 $24,993,000 $28,310,000


Research and Development $5,841,000 $5,055,000 $5,810,000

Sales, General and Admin. $18,763,000 $14,347,000 $14,500,000

Non-Recurring Items $0 $0 $0

Other Operating Items $0 $0 $0

Operating Income $4,479,000 $5,592,000 $8,000,000


Add'l income/expense items $215,000 $481,000 ($78,000)

Earnings Before Interest and Tax $5,815,000 $6,875,000 $9,192,000

Interest Expense $161,000 $152,000 $124,000

Earnings Before Tax $5,654,000 $6,723,000 $9,068,000


Income Tax $2,038,000 $2,044,000 $2,602,000

Minority Interest $0 $0 $0

Equity Earnings/Loss Unconsolidated Subsidiary $1,121,000 $801,000 $1,271,000

Net Income-Cont. Operations $4,737,000 $5,480,000 $7,737,000

Net Income $3,615,000 $4,679,000 $6,466,000


Totyata motors balance sheet
Period Ending: 3/31/2015 3/31/2014 3/31/2013
Cash and Cash Equivalents $26,153,000 $19,050,000 $19,820,000
Short-Term Investments $22,629,000 $24,444,000 $21,625,000
Net Receivables $83,027,000 $81,530,000 $86,253,000
Inventory $18,342,000 $17,825,000 $18,398,000
Other Current Assets $11,863,000 $6,716,000 $6,525,000
Total Current Assets $162,014,000 $149,563,000 $152,621,000
Long-Term Investments $166,799,000 $163,197,000 $168,395,000
Fixed Assets $86,662,000 $77,513,000 $74,198,000
Goodwill $0 $0 $0
Intangible Assets $0 $0 $0
Other Assets $6,497,000 $7,725,000 $7,150,000
Deferred Asset Charges $0 $0 $0
Total Assets $421,972,000 $397,997,000 $402,364,000
Accounts Payable $48,570,000 $45,262,000 $49,728,000
Short-Term Debt / Current Portion of Long- $85,069,000 $82,356,000 $83,759,000
Term Debt
Other Current Liabilities $9,824,000 $9,397,000 $9,065,000
Total Current Liabilities $143,462,000 $137,015,000 $142,552,000
Long-Term Debt $86,944,000 $83,505,000 $82,992,000
Other Liabilities $12,427,000 $11,158,000 $11,449,000
Deferred Liability Charges $18,204,000 $19,166,000 $17,593,000
Misc. Stocks $4,269,000 $0 $0
Minority Interest $7,665,000 $7,164,000 $7,281,000
Total Liabilities $272,972,000 $258,008,000 $261,866,000
Income statement
Honda &toyata motors
Financial ratio
Liquidity raio

Current ratio: current assets/current liab.


Honda motor Toyata motors
2015 114% 2015 113%
2014 119% 2014 109%
2013 117% 2013 107%

Quick ratio: current assets-inventry


prepayments/current liab.
Honda motors toyata motors
2015 90% 2015 100%
2014 91% 2014 96%
2013 89% 2013 94%
Financial ratio
Activity ratio

Inventory turnover: costof goodsold/inventry


Honda motors Toyata motors
2015 8.6times 2015 109times
2014 6.9times 2014 10.2times
2013 7.2 times 2013 10.9time

Receviables turnover
2015 5.3times 2015 3.1times
2014 4.6times 2014 2.8times
2013 4.68times 2013 2.9times

Payables turnover
2015 7.3times 2015 4.1times
2014 6.5times 2014 4.0times
2013 6.48times 2013 4.06times
Financial ratio
Protability ratio

Gross profit margin


Honda motors Toyata motots
2015 22% 2015 20%
2014 22% 2014 20%
2013 23% 2013 19%

Net profit margin


2015 3% 2015 8%
2014 4% 2014 8%
2013 5% 2013 7%

Retun on assets
2015 2r 2015 4%
2014 3% 2014 4%
2013 5% 2013 4%
Assets turnover: sales/total assets *100
2015 80% 2015 59%
2014 72% 2014 57%
2013 77% 2013 625
Comparsion between companies
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