Goodwill and Intangible Assets Accounting Policy
Goodwill, all of which is allocated to Honda's reporting units, is not amortized but is tested for impairment at least annually. Honda performs its annual impairment review of goodwill at March 31, and when a triggering event occurs between annual impairment dates. Honda recognized ¥8,006 million impairment loss on goodwill reported by a reporting unit in its automobile segment for the year ended March 31, 2009, because of a decision principally to withdraw from certain racing activities and estimated that it will not generate future cash flows. The impairment loss on goodwill is included in selling, general and administrative in the consolidated statements of income. For the year ended March 31, 2010 and 2011, Honda did not recognize impairment loss on goodwill.
The carrying amount of goodwill at March 31, 2010 and 2011 was ¥12,062 million and ¥12,008 million, respectively and is included in other assets of the consolidated balance sheets.
Source: Honda Motor Co. Ltd., Annual Report
Analyst Adjustments: Removal of Goodwill
You have visited 10 password protected pages for free. Others contain data covered by 
.
Sign Up Now to get full access to whole website and cut out all advertisements.
Honda Motor Co. Ltd., adjustments to financial data
USD $ in millions, translated from JPY ￥
Adjusted Ratios: Removal of Goodwill (Summary)
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
Honda Motor Co. Ltd., adjusted ratios
| Ratio |
Description |
The company |
| Adjusted net profit margin |
An indicator of profitability, calculated as adjusted net income divided by revenue. |
Honda Motor Co. Ltd.'s adjusted net profit margin improved from 2009 to 2010 and from 2010 to 2011.
|
| Adjusted total asset turnover |
An activity ratio calculated as total revenue divided by adjusted total assets. |
Honda Motor Co. Ltd.'s adjusted total asset turnover deteriorated from 2009 to 2010 but then slightly improved from 2010 to 2011.
|
| Adjusted financial leverage |
A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income. |
Honda Motor Co. Ltd.'s adjusted financial leverage declined from 2009 to 2010 and from 2010 to 2011.
|
| Adjusted ROE |
A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity. |
Honda Motor Co. Ltd.'s adjusted ROE improved from 2009 to 2010 and from 2010 to 2011.
|
| Adjusted ROA |
A profitability ratio calculated as adjusted net income divided by adjusted total assets. |
Honda Motor Co. Ltd.'s adjusted ROA improved from 2009 to 2010 and from 2010 to 2011.
|
Adjusted Net Profit Margin
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
2011 Calculations
| Ratio |
Description |
The company |
| Adjusted net profit margin |
An indicator of profitability, calculated as adjusted net income divided by revenue. |
Honda Motor Co. Ltd.'s adjusted net profit margin improved from 2009 to 2010 and from 2010 to 2011.
|
Adjusted Total Asset Turnover
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
2011 Calculations
| Ratio |
Description |
The company |
| Adjusted total asset turnover |
An activity ratio calculated as total revenue divided by adjusted total assets. |
Honda Motor Co. Ltd.'s adjusted total asset turnover deteriorated from 2009 to 2010 but then slightly improved from 2010 to 2011.
|
Adjusted Financial Leverage
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
2011 Calculations
| Ratio |
Description |
The company |
| Adjusted financial leverage |
A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income. |
Honda Motor Co. Ltd.'s adjusted financial leverage declined from 2009 to 2010 and from 2010 to 2011.
|
Adjusted Return On Equity (ROE)
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
2011 Calculations
| Ratio |
Description |
The company |
| Adjusted ROE |
A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity. |
Honda Motor Co. Ltd.'s adjusted ROE improved from 2009 to 2010 and from 2010 to 2011.
|
Adjusted Return On Assets (ROA)
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
2011 Calculations
| Ratio |
Description |
The company |
| Adjusted ROA |
A profitability ratio calculated as adjusted net income divided by adjusted total assets. |
Honda Motor Co. Ltd.'s adjusted ROA improved from 2009 to 2010 and from 2010 to 2011.
|
