Honda Revenue vs. Total Debt
| HOND34 Stock | BRL 155.51 4.35 2.88% |
For Honda profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Honda to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Honda Motor Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Honda's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Honda Motor Co over time as well as its relative position and ranking within its peers.
Honda |
Honda Motor Total Debt vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Honda's current stock value. Our valuation model uses many indicators to compare Honda value to that of its competitors to determine the firm's financial worth. Honda Motor Co is rated as one of the top companies in revenue category among its peers. It also is rated as one of the top companies in total debt category among its peers making up about 0.34 of Total Debt per Revenue. The ratio of Revenue to Total Debt for Honda Motor Co is roughly 2.92 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Honda by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Honda's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Honda Revenue vs. Competition
Honda Motor Co is rated as one of the top companies in revenue category among its peers. Market size based on revenue of Auto Manufacturers industry is currently estimated at about 14.59 Trillion. Honda totals roughly 14.55 Trillion in revenue claiming about 100% of stocks in Auto Manufacturers industry.
Honda Total Debt vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Honda |
| = | 14.55 T |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Honda |
| = | 4.98 T |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Honda Total Debt vs Competition
Honda Motor Co is rated as one of the top companies in total debt category among its peers. Total debt of Auto Manufacturers industry is currently estimated at about 5.02 Trillion. Honda totals roughly 4.98 Trillion in total debt claiming about 99% of stocks in Auto Manufacturers industry.
Honda Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Honda. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Honda position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Honda's important profitability drivers and their relationship over time.
Use Honda in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Honda position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Honda will appreciate offsetting losses from the drop in the long position's value.Honda Pair Trading
Honda Motor Co Pair Trading Analysis
The ability to find closely correlated positions to Honda could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Honda when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Honda - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Honda Motor Co to buy it.
The correlation of Honda is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Honda moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Honda Motor moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Honda can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Honda position
In addition to having Honda in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Realty Funds Thematic Idea Now
Realty Funds
Funds or Etfs investing in real estate backed instruments or issues backed by different types of commercial properties. The Realty Funds theme has 47 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Realty Funds Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Honda Stock
When determining whether Honda Motor offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Honda's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Honda Motor Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Honda Motor Co Stock:Check out Risk vs Return Analysis. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
To fully project Honda's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Honda Motor at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Honda's income statement, its balance sheet, and the statement of cash flows.