HMC (Honda Motor Co) ROCE % : 3.77% (As of Sep. 2024)

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What is Honda Motor Co ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Honda Motor Co's annualized ROCE % for the quarter that ended in Sep. 2024 was 3.77%.

Honda Motor Co ROCE % Historical Data

The historical data trend for Honda Motor Co's ROCE % 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 ROCE % Chart

Honda Motor Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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5.69

5.98

6.10

4.78

8.17

Honda Motor Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															7.38	8.00	7.67	10.18	3.77

Honda Motor Co ROCE % Calculation

Honda Motor Co's annualized ROCE % for the fiscal year that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	11360.505	/	( ( (184567.36 - 49767.395)	+	(198734.67 - 55557.134) )	/ 2 )
	=	11360.505	/	( (134799.965	+	143177.536)	/ 2 )
	=	11360.505	/	138988.7505
	=	8.17 %

Honda Motor Co's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	5463.464	/	( ( (198352.794 - 56806.753)	+	(204778.313 - 56322.181) )	/ 2 )
	=	5463.464	/	( ( 141546.041	+	148456.132 )	/ 2 )
	=	5463.464	/	145001.0865
	=	3.77 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Honda Motor Co (NYSE:HMC) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Honda Motor Co ROCE % Related Terms

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Honda Motor Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Honda Motor Co Ltd (NYSE:HMC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

HNDAF:USA HMC:Mexico 7267:Japan 0J5T:UK HDM:Germany HDM:Germany HDM:Germany HOND34:Brazil HMC:Argentina

Address

No. 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 4.1 million light vehicles and 18.8 million motorcycles in fiscal 2024, and consolidated sales were JPY 20.4 trillion. Automobiles constitute 66% of revenue and motorcycles 16%, with the rest split between power products and financial services. Honda also makes robots and private jets.