introduction of honda individual assignment fin202 su23

Nearly 30 years of presence in Vietnam, Honda Vietnam has been constantly developing and becoming one of the leading companies in the field of motorcycle manufacturing and a prestigious

FPT UNIVERSITY- CAMPUS CAN THO

Name: Ngo Yen Vy – CS171132Class: IB1705

E-mail: Vynycs171132@fpt.edu.vnLecturer: Pham Thai BaoSubject: Principles of Corporate

Cần Thơ, 29/05/2023

2]

II.Financial Analysis in 3 years: 6

a.Collect the most recent 3-5 years of financial data 6

b Perform Common-size analysis for the Balance sheet and Income Statement Calculate, comment on trend analysis, and compare with a peer group or industry average 10

c.Perform Ratios analysis Calculate, comment on trends, and compare with peer groups or industry averages 16

d ommentCon the Statement of Cash flows What can you conclude from the information found in this statement about the financial health of the company? 20

IV.References 21

I.Introduction of Honda

Honda Company was established in 1996, Honda Vietnam company is a joint venture between Honda Motor Company (Japan), Asian Honda Motor Company (Thailand) and Vietnam Engine and Agricultural Machinery Corporation with 2 main product lines: motorcycles and cars In March 2005, Honda Vietnam officially received a license from the Ministry of Planning and Investment allowing the production and assembly of automobiles in Vietnam - marking an important historical milestone in the development of the Company Nearly 30 years of presence in Vietnam, Honda Vietnam has been constantly developing and becoming one of the leading companies in the field of motorcycle manufacturing and a prestigious automobile manufacturer in the Vietnamese market

1 Position :

Position of Honda is a leading automobile and motorcycle manufacturer inthe world Honda is well known for the variety and reliability of itsproduct line The automaker focuses on creating high-quality, fuel-efficientcars with eco-friendly designs Honda offers a wide range of vehiclesincluding personal cars, sports cars, family cars, electric vehicles and

motorcycles They have built a solid reputation for producing durablevehicles, with good performance and comfort In addition, Honda alsofocuses on research and development of new technologies, includingautonomous driving systems and solutions using renewable energy Hondaalways strives to create pioneering products that meet market requirementswhile ensuring safety and customer satisfaction With the vision of"Challenging Dreams", Honda always strives to bring pioneering,creativity and value to customers around the globe.Market share

2.Market share

According to the fiscal 2023 report, Honda motorcycle sales in theperiod from March 2022 to March 2023 reached 2,335,337 vehicles, up7% compared to the previous statistical period In which, Hondamotorcycle sales in fiscal year 2023 reached 2,335,337 vehicles, up13.8% compared to fiscal 2022 Honda market share in Vietnam'smotorcycle market reached about 81.0 % (calculated in VAMM), anincrease of 0.3% compared to the previous fiscal year This shows thatHonda Vietnam continues to increase its popularity in the Vietnamesemotorcycle market and achieves success in attracting consumers.

3.Main Business

Honda focuses on the design, manufacture and marketing of automobilesand motorcycles With over a century of experience, Honda has becomeone of the leading automakers globally Honda manufactures and suppliesa wide range of automobiles, from light vehicles to midsize and premiumvehicles Their products are appreciated for their quality, reliability andperformance Honda not only focuses on the production of personal cars,but also develops high-performance sports and racing cars that embodytheir passion and vision for technology and performance In addition,Honda is also famous for the production and distribution of motorcycles.Honda motorcycles are renowned for their reliability, fuel economy andpracticality Honda's motorcycle product lines bring flexibility andconvenience to users, from digital cars, scooters to powerful sports cars.Honda not only focuses on vehicle production, but also focuses its researchand development on advanced technologies such as electric vehicles, self-driving cars and smart mobility solutions With a commitment topioneering and innovation, Honda constantly introduces new products andtechnologies to meet the increasing needs of customers and contribute tothe development of the automobile and motorcycle industry.

4 Important project

Honda is currently focusing on many important projects In the field ofelectric and hybrid vehicles, Honda is developing the Insight and Clarityhybrid vehicles, as well as the Honda e electric vehicle, to reduceemissions and increase energy efficiency At the same time, Honda alsopromotes research and development of self-driving technology andartificial intelligence through the Honda Sensing project These projectsare all aimed at bringing convenience, safety and environmental protectionto users.

Honda and Hyundai are two of the world's leading automakers andcompete directly in the auto industry Both companies are focused on theproduction and marketing of automobiles in the global market Honda isknown for the quality and reliability of its vehicles They focus on creatingproducts with good performance, fuel economy and with eco-friendlydesign Honda is also known for its high-end sports and racing cars, whichshowcase their passion and vision for technology and performance.Meanwhile, Hyundai has emerged as an automobile brand with rapidgrowth over the past few years Hyundai focuses on providing economyand family cars at competitive prices They focus on providing innovativefeatures and technologies in their product lines to meet the needs andpreferences of their customers Both Honda and Hyundai are working todevelop advanced technologies such as electric vehicles and self-drivingcars, and are focused on creating a safe and comfortable drivingexperience for customers.

II.Financial Analysis in 3 years:

a Collect the most recent 3-5 years of financial data (use audited financial statements and The annual report only are listed on https://cafef.vn/, hsx.hex, or hnx vn)

HONDABALANCE SHEET

Cash and Short Term 3892674 16.24% 3053327 13.93% 2862406 13.99%

Cash & Equivalents 3674931 15.33% 2758020 12.58% 2672353 13.06%Short Term Investments 217743 0.91% 295037 1.35% 1990053 9.73%Total Receivables, Net 896768 3.74% 801814 3.66% 2512267 12.28%Accounts Receivables -

Trade, Net 896768 3.74% 801814 3.66% 2393459 11.70%Total Inventory 1918548 8.00% 1545600 7.05% 1560568 7.63%

nt, Total - Gross 9729241 40.58% 9091944 41.48% 14651541 71.61%Accumulated

Depreciation, Total -6649834 -27.74% -6070430 -27.69% -6973774 -34.08%

-Intangibles, Net 849507 3.54% 818763 3.74% 760434 3.72%Long Term Investments 1787058 7.45% 1519535 6.93% 1097199 5.36%Note Receivable - Long

Term 3740383 15.60% 3619896 16.51% 3282807 16.04%Other Long Term

Assets, Total 424652 1.77% 342763 1.56% 342248 1.67%Other Assets, Total 12364062 51.57% 11856807 54.09% - -

Total Assets 23973153 100% 21921030 100% 20461465 100.00%Other Current Assets,

Total 2133435 8.90% 2178350 9.94% 365769 1.79%

Total Current Assets 8841425 36.88% 7579091 34.57% 7301010 35.68%

Accounts Payable 1236233 5.16% 1088061 4.96% 844183 4.13%Accrued Expenses 375601 1.57% 415106 1.89% 449716 2.20%

Term Debt - - 1299347 5.93% 1424667 6.96%Current Port of LT

Debt/Capital Leases 2283271 9.52% 1767330 8.06% 1823790 8.91%Other Current

Total Liabilities 13200607 55.06% 12548191 57.24% 12449206 60.84%Common Stock, Total 86067 0.36% 86067 0.39% 86067 0.42%Additional Paid-In

Capital 185495 0.77% 172049 0.78% 171823 0.84%Retained Earnings

(Accumulated Deficit)

9539133 39.79% 8901266 40.61% 8142948 39.80%Treasury Stock -

Common -328309 -1.37% -273786 -1.25% -273940 -1.34%Other Equity, Total 1290160 5.38% 487243 2.22% -13951 -0.07%

Total Equity 10772546 44.94% 9372839 42.76% 8012259 39.16%

Total Liabilities & Shareholders' Equity

23973153 100% 21921030 100% 20461465 100%

HONDAINCOME STATEMENT

Cost of good solds 3539583 24.32% 3441741 26.13% 3064170 20.52%

Amortization 179586 1.23% 195873 1.49% 161431 1.08%Interest Expense (Income)

- Net Operating -9564 -0.07% -8223 -0.06% -7427 -0.05%

-Other Operating Expenses,

HONDABALANCE SHEET

Assets 2022%2021%2020%

Cash and Short Term

Investments 3892674 16.24% 3053327 13.93% 2862406 13.99%Cash & Equivalents 3674931 15.33% 2758020 12.58% 2672353 13.06%Short Term Investments 217743 0.91% 295037 1.35% 1990053 9.73%Total Receivables, Net 896768 3.74% 801814 3.66% 2512267 12.28%Accounts Receivables -

Trade, Net 896768 3.74% 801814 3.66% 2393459 11.70%Total Inventory 1918548 8.00% 1545600 7.05% 1560568 7.63%

t, Total - Gross 9729241 40.58% 9091944 41.48% 14651541 71.61%Accumulated

Depreciation, Total -6649834 -27.74% -6070430 -27.69% -6973774 -34.08%

-Intangibles, Net 849507 3.54% 818763 3.74% 760434 3.72%Long Term Investments 1787058 7.45% 1519535 6.93% 1097199 5.36%Note Receivable - Long

Term 3740383 15.60% 3619896 16.51% 3282807 16.04%Other Long Term Assets,

Total 424652 1.77% 342763 1.56% 342248 1.67%Other Assets, Total 12364062 51.57% 11856807 54.09% - -

Accounts Payable 1236233 5.16% 1088061 4.96% 844183 4.13%Accrued Expenses 375601 1.57% 415106 1.89% 449716 2.20%Notes Payable/Short - - 1299347 5.93% 1424667 6.96%

Current Port of LT

Debt/Capital Leases 2283271 9.52% 1767330 8.06% 1823790 8.91%Other Current liabilities,

Total Liabilities 13200607 55.06% 12548191 57.24% 12449206 60.84%Common Stock, Total 86067 0.36% 86067 0.39% 86067 0.42%Additional Paid-In

Capital 185495 0.77% 172049 0.78% 171823 0.84%Retained Earnings

(Accumulated Deficit)

9539133 39.79% 8901266 40.61% 8142948 39.80%

Treasury Stock -

Common -328309 -1.37% -273786 -1.25% -273940 -1.34%Other Equity, Total 1290160 5.38% 487243 2.22% -13951 -0.07%

Total Equity 10772546 44.94% 9372839 42.76% 8012259 39.16%

Total Liabilities & Shareholders' Equity

23973153 100% 21921030 100% 20461465 100%

HUYNDAIBALANCE SHEET

Cash and Short Term 32110530 5.59% 32045772 13.70% 29858883 14.26%

Cash & Equivalents 20864879 8.16% 12795554 5.47% 9862136 4.71%Short Term Investments 5878899 2.30% 7000238 2.99% 7291359 3.48%Total Receivables, Net 9254209 3.62% 7737861 3.31% 7745307 3.70%Accounts Receivables -

Trade, Net 5692943 2.23% 4568404 1.95% 4536089 2.17%Total Inventory 14291216 5.59% 11645641 4.98% 11333734 5.41%Prepaid Expenses 782749 0.31% 558336 0.24% 459580 0.22%Other Current Assets,

Total 39950569 15.62% 36577756 15.64% 34288853 16.38%

Total Current Assets 96389273 37.69% 88565366 37.86% 83686357 39.98%Property/Plant/Equipme

nt, Total - Net 64952017 25.40% 62811905 26.85% 55430244 26.48%Property/Plant/Equipme

nt, Total - Gross 99475136 38.90% 93827568 40.11% 82776163 39.54%Accumulated

Depreciation, Total -34523119 -13.50% -31015663 -13.26% -27345919 -13.06%Goodwill, Net 692235 0.27% 373281 0.16% 340994 0.16%Intangibles, Net 6102377 2.39% 5846968 2.50% 5677567 2.71%Long Term Investments 28441619 11.12% 25852749 11.05% 22669701 10.83%Note Receivable - Long

Term 3561266 1.39% 3169457 1.35% 3209218 1.53%Other Long Term

Assets, Total 4113608 1.61% 2730893 1.17% 1839462 0.88%Other Assets, Total 111284560 43.51% 107500989 45.95% 97573914 46.61%

Total Assets 255742462 100% 233946415 100% 209344212 100.00%

Accounts Payable 10797065 4.22% 9155255 3.91% 8793179 4.20%Notes Payable/Short

Term Debt 11366480 4.44% 13087836 5.59% 13780670 6.58%

Debt/Capital Leases 25979184 10.16% 20746168 8.87% 16245483 7.76%Other Current liabilities,

Total Liabilities 164845917 64.46% 151330626 64.69% 13303242 6.35%Common Stock, Total 1283532 0.50% 1283532 0.55% 1283532 0.61%Additional Paid-In

Capital 4241303 1.66% 4070260 1.74% 4190093 2.00%Retained Earnings

(Accumulated Deficit)

79953601 31.26% 73167855 31.28% 68911800 32.92%Treasury Stock -

Common -1713928 -0.67% -1968385 -0.84% -1700592 -0.81%Other Equity, Total 6926576 2.71% 5857066 2.50% 3450676 1.65%

Total Equity 90896545 35.54% 82615789 35.31% 76340970 36.47%

Total Liabilities & Shareholders' Equity

255742462 100% 233946415 100% 209344212 100%

HONDAINCOME STATEMENT

Revenue 3704580 25% 4255754 32% 3079487 21%

Development 220750 1.52% 199572 1.52% 181591 1.22%Depreciation /

Amortization 179586 1.23% 195873 1.49% 161431 1.08%Interest Expense

(Income) - Net Operating

-9564 -0.07% -8223 -0.06% -7427

-0.05%Unusual Expense

Gain (Loss) on Sale of

244655 1.68% 189295 1.44% 149219

1.00%

HUYNDAIINCOME STATEMENT

Total Revenue 142527535 100% 117610626 100% 103997601 100%Revenue 142527535 100% 117610626 100% 103997601 100%Cost of good solds 114209483 80.13% 95680131 81.35% 85515931 82.23%

Gross Profit 28318052 19.87% 21930495 18.65% 18481670 17.77%

Total Operating Expenses 132707766 93.11% 110931677 94.32% 101602930 97.70%Selling/General/Admin

Expenses, Total 16735534 11.74% 13716553 11.66% 14749127 14.18%Research & Development 1762749 1.24% 1534993 1.31% 1337872 1.29%Depreciation / Amortization 3180687 2.23% 2937914 2.50% - -Interest Expense (Income) -

Net Operating -536086 -0.38% -304542 -0.26% -362377 -0.35%

-Other Operating Expenses,

Total -2644601 -1.86% -2633372 -2.24% 362377 0.35%

Operating Income 9819769 6.89% 6678949 5.68% 2394671 2.30%Interest Income (Expense),

-Gain (Loss) on Sale of

Assets 127690 0.09% -33921 -0.03% -69276 Other, Net -1000484 -0.70% -1246692 -1.06% 370691 0.36%

-Net Income Before Taxes 10947943 7.68% 7959562 6.77% 2093256 2.01%Provision for Income Taxes 2964329 2.08% 2266485 1.93% 168703 0.16%

Net Income After Taxes 7983614 5.60% 5693077 4.84% 1924553 1.85%Minority Interest 8547258 6.00% 7629667 6.49% 6860337 6.60%

Net Income Before

Based on the provided financial ratios for Honda in the years 2022, 2021, and 2020, thefollowing observations can be made:

Liquidity Ratios:

- The current ratio and quick ratio have shown a consistent improvement over the years Thisindicates that Honda has strengthening its ability to meet short-term obligations and hasenough liquid assets to cover immediate liabilities.

- The account receivable turnover ratio has remained relatively stable, indicating consistentcollection of receivables from customers.

- Days' sales outstanding has also remained relatively stable, indicating a consistent collectionperiod from customers.

- Asset turnover has shown a slight improvement, indicating better utilization of assets togenerate revenue.

- The fixed assets turnover ratio has increased, indicating more efficient use of fixed assets togenerate sales.

Profitability Ratios:

- The gross profit margin has shown some fluctuations but has remained at a relatively highlevel This indicates strong profitability from sales after accounting for the cost of goodssold.

- The net profit margin has remained stable, indicating a consistent level of profitability afteraccounting for all expenses.

- The operating profit margin has shown a slight increase, suggesting improved operatingefficiency.

- Return on assets (ROA) has shown a slight improvement, indicating better utilization of assetsto generate profits.

- Return on equity (ROE) has also shown a slight increase, indicating improved profitability inrelation to shareholders' equity.