Honda Motor Co (Honda Motor Co) Debt-to-Equity

: 0.76 (As of Dec. 2023)

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Honda Motor Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $26,245 Mil. Honda Motor Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $37,445 Mil. Honda Motor Co's Total Stockholders Equity for the quarter that ended in Dec. 2023 was $83,728 Mil. Honda Motor Co's debt to equity for the quarter that ended in Dec. 2023 was 0.76.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Honda Motor Co's Debt-to-Equity or its related term are showing as below:

HMC' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.69 Med: 0.88 Max: 1.02
Current: 0.76

During the past 13 years, the highest Debt-to-Equity Ratio of Honda Motor Co was 1.02. The lowest was 0.69. And the median was 0.88.

HMC's Debt-to-Equity is ranked worse than
65.81% of 1173 companies
in the Vehicles & Parts industry
Industry Median: 0.48 vs HMC: 0.76

Honda Motor Co Debt-to-Equity Historical Data

The historical data trend for Honda Motor Co's Debt-to-Equity 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 Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Debt-to-Equity

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0.89

0.93

0.85

0.77

0.69

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
Debt-to-Equity	Get a 7-Day Free Trial															0.69	0.69	0.70	0.73	0.76

Competitive Comparison

For the Auto Manufacturers subindustry, Honda Motor Co's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Honda Motor Co's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Honda Motor Co's Debt-to-Equity falls into.

Honda Motor Co Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Honda Motor Co's Debt to Equity Ratio for the fiscal year that ended in Mar. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(24622.842	+	32723.569)	/	83674.175
	=	0.69

Honda Motor Co's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(26244.691	+	37444.554)	/	83727.597
	=	0.76

Honda Motor Co (NYSE:HMC) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Honda Motor Co Debt-to-Equity Related Terms

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Honda Motor Co (Honda Motor Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Honda Motor Co Ltd (NYSE:HMC) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

HNDAF:USA HMC:Mexico 7267:Japan HDM:Germany HOND34:Brazil HMC:Argentina

Address

Number 1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo, JPN, 107-8556

Website

https://global.honda

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.