Honda Motor Co. Ltd. (HMC)

Ratios (Summary)

Honda Motor Co. Ltd., liquidity ratios

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Current ratio	1.32	1.31	1.35	1.09	1.12	1.23
Quick ratio	0.88	0.90	0.91	0.64	0.73	0.80
Cash ratio	0.35	0.36	0.33	0.16	0.22	0.22

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 deteriorated from 2010 to 2011 but then slightly improved from 2011 to 2012.
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 deteriorated from 2010 to 2011 and from 2011 to 2012.
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 2010 to 2011 but then slightly deteriorated from 2011 to 2012.

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Selected Financial Data (USD $ in millions, translated from JPY ￥)
Current assets	57,660	56,405	49,589	47,044	52,216	44,493
Current liabilities	43,555	42,913	36,749	43,137	46,697	36,320
Current Ratio, Comparison to Industry
Honda Motor Co. Ltd.¹	1.32	1.31	1.35	1.09	1.12	1.23
Industry, Consumer Goods	1.10	1.10	1.20	1.10	1.07	–

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

2012 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 57,660 ÷ 43,555 = 1.32

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Honda Motor Co. Ltd.'s current ratio deteriorated from 2010 to 2011 but then slightly improved from 2011 to 2012.

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Selected Financial Data (USD $ in millions, translated from JPY ￥)
Cash and cash equivalents	15,174	15,382	12,037	7,028	10,489	8,010
Trade accounts and notes receivable, net of allowance for doubtful accounts	9,881	9,473	9,496	8,696	10,198	8,941
Finance subsidiaries-receivables, net	13,161	13,603	11,825	11,931	13,382	12,082
Total quick assets	38,216	38,458	33,357	27,656	34,069	29,032
Current liabilities	43,555	42,913	36,749	43,137	46,697	36,320
Quick Ratio, Comparison to Industry
Honda Motor Co. Ltd.¹	0.88	0.90	0.91	0.64	0.73	0.80
Industry, Consumer Goods	0.74	0.75	0.82	0.70	0.69	–

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

2012 Calculations

¹ Quick ratio = Total quick assets ÷ Current liabilities
= 38,216 ÷ 43,555 = 0.88

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 deteriorated from 2010 to 2011 and from 2011 to 2012.

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Selected Financial Data (USD $ in millions, translated from JPY ￥)
Cash and cash equivalents	15,174	15,382	12,037	7,028	10,489	8,010
Total cash assets	15,174	15,382	12,037	7,028	10,489	8,010
Current liabilities	43,555	42,913	36,749	43,137	46,697	36,320
Cash Ratio, Comparison to Industry
Honda Motor Co. Ltd.¹	0.35	0.36	0.33	0.16	0.22	0.22
Industry, Consumer Goods	0.30	0.33	0.35	0.28	0.23	–

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

2012 Calculations

¹ Cash ratio = Total cash assets ÷ Current liabilities
= 15,174 ÷ 43,555 = 0.35

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 2010 to 2011 but then slightly deteriorated from 2011 to 2012.