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Honda Motor Co., Ltd. (HMC) | Liquidity Analysis

Liquidity ratios measure the company's ability to meet its short-term obligations.


Ratios (Summary)

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Honda Motor Co., Ltd., liquidity ratios

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    Mar 31, 2011 Mar 31, 2010 Mar 31, 2009 Mar 31, 2008 Mar 31, 2007 Mar 31, 2006
Current ratio
Quick ratio
Cash ratio

Source: Based on data from Honda Motor Co., Ltd. Annual Reports

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Honda Motor Co., Ltd.'s current ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Honda Motor Co., Ltd.'s quick ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Honda Motor Co., Ltd.'s cash ratio improved from 2009 to 2010 and from 2010 to 2011.

Current Ratio

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    Mar 31, 2011 Mar 31, 2010 Mar 31, 2009 Mar 31, 2008 Mar 31, 2007 Mar 31, 2006
  Selected Financial Data (USD $ in millions, translated from JPY ¥)
Current assets
Current liabilities
  Current Ratio, Comparison to Industry
Honda Motor Co., Ltd.1
  Industry, Consumer Goods

Source: Based on data from Honda Motor Co., Ltd. Annual Reports

2011 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= ÷ =

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Honda Motor Co., Ltd.'s current ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.

Quick Ratio

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    Mar 31, 2011 Mar 31, 2010 Mar 31, 2009 Mar 31, 2008 Mar 31, 2007 Mar 31, 2006
  Selected Financial Data (USD $ in millions, translated from JPY ¥)
Cash and cash equivalents
Trade accounts and notes receivable, net of allowance for doubtful accounts
Finance subsidiaries-receivables, net
Total quick assets
Current liabilities
  Quick Ratio, Comparison to Industry
Honda Motor Co., Ltd.1
  Industry, Consumer Goods

Source: Based on data from Honda Motor Co., Ltd. Annual Reports

2011 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =

Ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Honda Motor Co., Ltd.'s quick ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.

Cash Ratio

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    Mar 31, 2011 Mar 31, 2010 Mar 31, 2009 Mar 31, 2008 Mar 31, 2007 Mar 31, 2006
  Selected Financial Data (USD $ in millions, translated from JPY ¥)
Cash and cash equivalents
Total cash assets
Current liabilities
  Cash Ratio, Comparison to Industry
Honda Motor Co., Ltd.1
  Industry, Consumer Goods

Source: Based on data from Honda Motor Co., Ltd. Annual Reports

2011 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =

Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Honda Motor Co., Ltd.'s cash ratio improved from 2009 to 2010 and from 2010 to 2011.

February 7, 2012

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