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Honda Motor Co (Honda Motor Co) 10-Year ROIIC % : 3.62% (As of Mar. 2023)


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What is Honda Motor Co 10-Year ROIIC %?

10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year. Honda Motor Co's 10-Year ROIIC % for the quarter that ended in Mar. 2023 was 3.62%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Honda Motor Co's 10-Year ROIIC % or its related term are showing as below:

HMC's 10-Year ROIIC % is ranked better than
51.88% of 1195 companies
in the Vehicles & Parts industry
Industry Median: 3.05 vs HMC: 3.62

Honda Motor Co 10-Year ROIIC % Historical Data

The historical data trend for Honda Motor Co's 10-Year ROIIC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Honda Motor Co 10-Year ROIIC % Chart

Honda Motor Co Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
10-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.14 2.44 1.28 4.96 3.62

Honda Motor Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
10-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 3.62 - - -

Competitive Comparison of Honda Motor Co's 10-Year ROIIC %

For the Auto Manufacturers subindustry, Honda Motor Co's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Honda Motor Co's 10-Year ROIIC % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Honda Motor Co's 10-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Honda Motor Co's 10-Year ROIIC % falls into.



Honda Motor Co 10-Year ROIIC % Calculation

Honda Motor Co's 10-Year ROIIC % for the quarter that ended in Mar. 2023 is calculated as:

10-Year ROIIC %=10-Year Incremental Net Operating Profit After Taxes (NOPAT)**/10-Year Incremental Invested Capital**
=( 4763.554054 (Mar. 2023) - 3644.138964 (Mar. 2013) )/( 148219.741 (Mar. 2023) - 124162.151 (Mar. 2013) )
=1119.41509/24057.59
=4.65%***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Honda Motor Co  (NYSE:HMC) 10-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Honda Motor Co 10-Year ROIIC % Related Terms

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Honda Motor Co (Honda Motor Co) Business Description

Address
Number 1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo, JPN, 107-8556
Incorporated in 1948, Honda Motor was originally a motorcycle manufacturer. Today, the firm makes automobiles, motorcycles, and power products such as boat engines, generators, and lawnmowers. Including joint ventures, Honda sold 22.4 million cars and motorcycles in fiscal 2023 (3.7 million of which were autos), and consolidated sales were JPY 16.9 trillion. Automobiles constitute 63% of revenue and motorcycles 17%, with the rest split between power products and financial services. Honda also makes robots and private jets.