Honda Motor Co. Ltd. (HMC) | Debt and Solvency

Ratios (Summary)

Honda Motor Co. Ltd., debt and solvency ratios

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Debt to equity	0.93	0.92	0.95	1.15	0.97	0.88
Debt to capital	0.48	0.48	0.49	0.54	0.49	0.47
Interest coverage	35.48	91.90	35.22	12.57	62.05	70.41

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

Ratio	Description	The company
Debt-to-equity ratio	A solvency ratio calculated as total debt divided by total shareholders' equity.	Honda Motor Co. Ltd.'s debt-to-equity ratio improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012.
Debt-to-capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders' equity.	Honda Motor Co. Ltd.'s debt-to-capital ratio improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012.
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Honda Motor Co. Ltd.'s interest coverage ratio improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012 not reaching 2010 level.

	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 ￥)
Short-term debt	11,739	13,166	11,461	17,376	16,839	10,723
Current portion of long-term debt	11,089	11,575	7,763	9,951	8,694	6,568
Long-term debt, excluding current portion	27,193	24,573	24,861	19,675	18,332	16,144
Total debt	50,021	49,314	44,085	47,002	43,865	33,435
Honda Motor Co., Ltd. shareholders’ equity	53,566	53,517	46,525	40,795	45,356	37,972
Debt to Equity, Comparison to Industry
Honda Motor Co. Ltd.¹	0.93	0.92	0.95	1.15	0.97	0.88
Industry, Consumer Goods	1.02	1.01	0.97	0.97	0.87	–

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

2012 Calculations

¹ Debt to equity = Total debt ÷ Honda Motor Co., Ltd. shareholders’ equity
= 50,021 ÷ 53,566 = 0.93

Ratio	Description	The company
Debt-to-equity ratio	A solvency ratio calculated as total debt divided by total shareholders' equity.	Honda Motor Co. Ltd.'s debt-to-equity 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 ￥)
Short-term debt	11,739	13,166	11,461	17,376	16,839	10,723
Current portion of long-term debt	11,089	11,575	7,763	9,951	8,694	6,568
Long-term debt, excluding current portion	27,193	24,573	24,861	19,675	18,332	16,144
Total debt	50,021	49,314	44,085	47,002	43,865	33,435
Honda Motor Co., Ltd. shareholders’ equity	53,566	53,517	46,525	40,795	45,356	37,972
Total capital	103,588	102,831	90,610	87,797	89,221	71,407
Debt to Capital, Comparison to Industry
Honda Motor Co. Ltd.¹	0.48	0.48	0.49	0.54	0.49	0.47
Industry, Consumer Goods	0.50	0.50	0.49	0.49	0.47	–

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

2012 Calculations

¹ Debt to capital = Total debt ÷ Total capital
= 50,021 ÷ 103,588 = 0.48

Ratio	Description	The company
Debt-to-capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders' equity.	Honda Motor Co. Ltd.'s debt-to-capital 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 ￥)
Net income attributable to Honda Motor Co., Ltd.	2,573	6,423	2,885	1,395	5,989	5,018
Add: Net income attributable to noncontrolling interests	129	353	153	142	273	170
Add: Interest expense	126	102	135	229	166	109
Add: Income tax expense (benefit)	1,651	2,487	1,579	1,118	3,867	2,404
Earnings before interest and tax (EBIT)	4,480	9,366	4,751	2,884	10,295	7,702
Interest Coverage, Comparison to Industry
Honda Motor Co. Ltd.¹	35.48	91.90	35.22	12.57	62.05	70.41
Industry, Consumer Goods	14.33	14.76	12.20	10.17	20.33	–

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

2012 Calculations

¹ Interest coverage = EBIT ÷ Interest expense
= 4,480 ÷ 126 = 35.48

Ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Honda Motor Co. Ltd.'s interest coverage ratio improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012 not reaching 2010 level.