Balance Sheet Fiscal year is Apr - Mar 2018 2017 2017 HONDA CO Income Statement Fiscal year is April March All values 2018 JPY Millions Sales: Revenue 15,361,146 Sales Growth 9.73% Cash 20.312 19.59B 13,999,200 -4.12% Marketable Securities Reccivables Inventory 23.778 24.58B 13.711 12.698 Raw Materials 4.78 4.438 Work In Progress 627.3IM 717.5M Cost of Goods Sold (COGS) incl. D&A 12,154,503 11,018,39G COGS excluding D&A 10,700,3879,681,986 Depreciation & Amortization Expense 1.454,116 1,336,410 Depreciation 1,258,172 Amortization of Intangibles 195,944 8.398 7.54B 4.118 COGS Growth 10.31% -3.85% 60.970 125.32B Gross Income 3,206,643 2,980,804 57.38 Gross Income Growth 7.58% -5.10% 67.943 4.54B 62.333 122278 57.913 64.363 6.12B 28.068 1.163 6.678 5:45B 5.55B 28.56B 1.133 Gross Profit Margin SGSA Expense Research & Development Other SG&A 20.88% 2,373,085 697,934 1,775,151 2,140,093 538,88 1,601,212 7.248 4.938 SGA Growth 10.89% -18.00% 174.143 176.31B EBIT 833,558 840,711 11.01B 11.02B 26.260 Finished Goods Notes Receivable Other Current Assets Total Current Assets Property Plant & Equipment Accumulated Depreciation Net Property Plant & Equipment Investment & Advances Other Non-Current Assets Deferred Charges Intangibles Deposits & Other Assets Total Assets Notes Puynble Accounts Payable Current Portion Long-Term Debt Current Portion Capital Leases Accrued Expenses Income Taxes Payable Other Current Liabilities Total Current Liabilities Mortgages Deferred Taxes/income Convertible Debt Long-Term Debt Non-Current Capital Leases Other Long-Term Liabilities Total Liabilities Minority Interest Preferred Stock Unusual Expense -67,132 51,416 25.928 Non Operating Income/Expense .61.581 32,900 3.643 482.35M 9.228 32,389 3.88B 423.21M 9.263 50.490 Non-Operating Interest Income Equity in Affiliates (Pretax) Interest Expense 41,191 247,843 12,970 50.628 12,471 - Interest Expense Growth 4.00% -31.27% 5.678 8.378 - 12,970 Gross Interest Expense Pretax Income 12,471 842,193 34 943 37.41B 1,114,973 Pretax Income Growth 32.39% 32.53% 8.825 9.643 100.048 105.91B 7.26% Pretax Margin Income Tax -13,686 327,592 Common Stock Net 774.6M 800.42M 1.59B Income Tax - Current Domestic -2,956 196,149 1.54B Capital Surplus Retained Earnings 68 SB 62.43B Income Tax . Current Foreign 280,316 - Income Tax Deferred Domestic 25,149 131.443 Treasury Stock 1.000 Other Liabilities 431B Sharcholders Equity 74.IR Total Liabilities & Shareholders Equity 174.143 243.5SM 5.828 70.48 Income Tax Deferred Foreign -316,175 17631B 1,128,639 69,302 1,059,337 104,793 679,394 62,825 616,569 71,81% 78.98% Equity in Affiliates Consolidated Net Income Minority Interest Expense Net Income Net Income Growth Net Margin Net Income After Extraordinaries Net Income Available to Common EPS (Basie) EPS (Basic) Growth 6.90% 1,059,337 616,569 616,569 1,059,337 590.79 342.1 72.70% 78.98% Basio Shares Outstanding EPS (Diluted ) 1.793 590.79 1.802 342.1 FORD CO Balance Sheet Fiscal year is Jan-Dec 2018 2017 2018 2017 16.7213 18.498 156,776 3.28% 20.400 160,338 2.27% 145.732 17.23B 11.28 11.22 10.68 10.288 145,732 132,892 124,439 8,453 9,122 4.48 . 6.788 -689 33.2910 3.931 5221B 3.89B 9.66% 14,606 3.24% 23,884 113.5911 3.51% 115.98 65.190 -38.85% 9.11% 11,403 29.86B 35.338 19,527 8.000 36.188 31.83 31 32 11.527 11.403 -41 60% 0.16% 36.61B 10.41B 56.18B 10.970 - Income Statement Fiscal year is January-December. All values USD Millions . Sales Revenue Sales Growth Cost of Goods Sold (COGS) incl. D&A COGS excluding DSA Depreciation & Amortization Expenso Depreciation Amortization of Intangibles COGS Growth Gross Income Gross Income Growth Gross Proft Margin SG&A Expense Research & Development Other SGSA SGA Growth Other Operating Expense EBIT Unusual Expense Non Operating Income Expense Non-Operating Interest Income Equity In Affiliates (Protax) ( Interest Expense Interest Expense Growth Gross interest Expense Interest Capitalized Pretax Income Prelax Income Growth Pretax Margin Income Tax Income Tax - Current Domestic Income Tax . Current Foreign Income Tax - Deferred Domestic Income Tax - Deferred Foreign Consolidated Net Income Minority Interest Expenso Net Income 3,203 4,357 8.1B 204 7.93B 256.54R 257.813 2,247 3,685 - Cash Marketable Securities Receivables Inventory Raw Materials Work In Progress Finished Goods Notes Receivable Other Current Assels Total Current Assets Property Plant & Equipment Accumulated Depreciation Net Property Plant & Equipment Investment & Advances Other Non-Current Assets Deferred Charges Intangibles Deposits & Other Assets Total Assets Notes Payable Accounts Payable Current Portion Long-Term Debt Current Portion Capital Leases Accrued Expenses Income Taxes Payable Other Current Liabilities Total Current Liabilities Mortgages Deferred Taxes/Income Convertible Debt Long-Term Debt - Non-Current Capital Leases Other Long-Term Liabilities Total Liabilities Minority Interest Preferred Stock Common Stock Net Capital Surplus Retained Earnings Treasury Stock 459 23.28B 123 1,201 21.525 53.49B 51.62B 1,228 1,350 -9.04% 7.06% 1,228 1,385 35 20.56B 19.78 8,148 4,345 -46.67% 95.5733 94.6B 19.892% - 2.71% 597M BI5M 650 520 -40 100.72B 102.67B 968 -901 23.591 24,718 593 222.89B 220.57B 100M 3,695 18 7,628 26 98M 3,677 -51.63% 7,602 65,40% 41M 41M Net Income Growth 22.011 Net Margin 2.29% 21.848 21.22B 7,602 22.67B 1.428 Net Income After Extraordinaries Net Income Available to common 3,677 3,677 1.258 7,602 -693B 1.9 Other abilities -7.33B Shareholders Equity 35 928 Total Liabilities & Sharchalders Equity 256.548 EPS (Basic) EPS (Basic) Growth 0.92 -51.58% 34.928 65.22% 257.81B 3,975 1.9 0,00% 65.45% 3,998 Basic Shares Outstanding EPS (Diluted) EPS (Diluted) Growth Diluted Shares Outstanding EBITDA EBITDA Growth EBITDA Margin EBIT 12,810 4.18% 11,511 -10.14% 7.18% - 3,203 4,357 ii. Assignment Questions i. Using financial statement ratio analysis to determine the following for each of the two companies you selected for the latest of the two years you have to financial statements for (you can use multiple ratios for each element): Profitability Efficiency Liquidity Investment Financial gearing Analyse and discuss the differences observed between the two companies, based on your results from (). iii. Perform a direct analysis by looking at aspects like turnover, gross profit, net profit etc., between the selected companies. iv. Evaluate the two companies and discuss the differences between the results obtained in (ii) and (ii). Identify and explain difficulties when analysing two different companies in terms of the two methods used for your analysis ii and i above). Analyse the companies' financial reports and describe any positive, uplifting stories about activities and accomplishments done in the past year in their financial reporting. vii. Which of these two companies would you rather work for? Explain your answer. V. vi. Evaluation of Reports In evaluating your reports, the lecturer will primarily be looking at the following things: Evidence of your close and considered engagement with your source material and with the terms of the assignment; A clear sense of your contribution to this ongoing discussion; and . . A minimum of eight (8) resources should be used and correctly cited, using the Harvard method, Balance Sheet Fiscal year is Apr - Mar 2018 2017 2017 HONDA CO Income Statement Fiscal year is April March All values 2018 JPY Millions Sales: Revenue 15,361,146 Sales Growth 9.73% Cash 20.312 19.59B 13,999,200 -4.12% Marketable Securities Reccivables Inventory 23.778 24.58B 13.711 12.698 Raw Materials 4.78 4.438 Work In Progress 627.3IM 717.5M Cost of Goods Sold (COGS) incl. D&A 12,154,503 11,018,39G COGS excluding D&A 10,700,3879,681,986 Depreciation & Amortization Expense 1.454,116 1,336,410 Depreciation 1,258,172 Amortization of Intangibles 195,944 8.398 7.54B 4.118 COGS Growth 10.31% -3.85% 60.970 125.32B Gross Income 3,206,643 2,980,804 57.38 Gross Income Growth 7.58% -5.10% 67.943 4.54B 62.333 122278 57.913 64.363 6.12B 28.068 1.163 6.678 5:45B 5.55B 28.56B 1.133 Gross Profit Margin SGSA Expense Research & Development Other SG&A 20.88% 2,373,085 697,934 1,775,151 2,140,093 538,88 1,601,212 7.248 4.938 SGA Growth 10.89% -18.00% 174.143 176.31B EBIT 833,558 840,711 11.01B 11.02B 26.260 Finished Goods Notes Receivable Other Current Assets Total Current Assets Property Plant & Equipment Accumulated Depreciation Net Property Plant & Equipment Investment & Advances Other Non-Current Assets Deferred Charges Intangibles Deposits & Other Assets Total Assets Notes Puynble Accounts Payable Current Portion Long-Term Debt Current Portion Capital Leases Accrued Expenses Income Taxes Payable Other Current Liabilities Total Current Liabilities Mortgages Deferred Taxes/income Convertible Debt Long-Term Debt Non-Current Capital Leases Other Long-Term Liabilities Total Liabilities Minority Interest Preferred Stock Unusual Expense -67,132 51,416 25.928 Non Operating Income/Expense .61.581 32,900 3.643 482.35M 9.228 32,389 3.88B 423.21M 9.263 50.490 Non-Operating Interest Income Equity in Affiliates (Pretax) Interest Expense 41,191 247,843 12,970 50.628 12,471 - Interest Expense Growth 4.00% -31.27% 5.678 8.378 - 12,970 Gross Interest Expense Pretax Income 12,471 842,193 34 943 37.41B 1,114,973 Pretax Income Growth 32.39% 32.53% 8.825 9.643 100.048 105.91B 7.26% Pretax Margin Income Tax -13,686 327,592 Common Stock Net 774.6M 800.42M 1.59B Income Tax - Current Domestic -2,956 196,149 1.54B Capital Surplus Retained Earnings 68 SB 62.43B Income Tax . Current Foreign 280,316 - Income Tax Deferred Domestic 25,149 131.443 Treasury Stock 1.000 Other Liabilities 431B Sharcholders Equity 74.IR Total Liabilities & Shareholders Equity 174.143 243.5SM 5.828 70.48 Income Tax Deferred Foreign -316,175 17631B 1,128,639 69,302 1,059,337 104,793 679,394 62,825 616,569 71,81% 78.98% Equity in Affiliates Consolidated Net Income Minority Interest Expense Net Income Net Income Growth Net Margin Net Income After Extraordinaries Net Income Available to Common EPS (Basie) EPS (Basic) Growth 6.90% 1,059,337 616,569 616,569 1,059,337 590.79 342.1 72.70% 78.98% Basio Shares Outstanding EPS (Diluted ) 1.793 590.79 1.802 342.1 FORD CO Balance Sheet Fiscal year is Jan-Dec 2018 2017 2018 2017 16.7213 18.498 156,776 3.28% 20.400 160,338 2.27% 145.732 17.23B 11.28 11.22 10.68 10.288 145,732 132,892 124,439 8,453 9,122 4.48 . 6.788 -689 33.2910 3.931 5221B 3.89B 9.66% 14,606 3.24% 23,884 113.5911 3.51% 115.98 65.190 -38.85% 9.11% 11,403 29.86B 35.338 19,527 8.000 36.188 31.83 31 32 11.527 11.403 -41 60% 0.16% 36.61B 10.41B 56.18B 10.970 - Income Statement Fiscal year is January-December. All values USD Millions . Sales Revenue Sales Growth Cost of Goods Sold (COGS) incl. D&A COGS excluding DSA Depreciation & Amortization Expenso Depreciation Amortization of Intangibles COGS Growth Gross Income Gross Income Growth Gross Proft Margin SG&A Expense Research & Development Other SGSA SGA Growth Other Operating Expense EBIT Unusual Expense Non Operating Income Expense Non-Operating Interest Income Equity In Affiliates (Protax) ( Interest Expense Interest Expense Growth Gross interest Expense Interest Capitalized Pretax Income Prelax Income Growth Pretax Margin Income Tax Income Tax - Current Domestic Income Tax . Current Foreign Income Tax - Deferred Domestic Income Tax - Deferred Foreign Consolidated Net Income Minority Interest Expenso Net Income 3,203 4,357 8.1B 204 7.93B 256.54R 257.813 2,247 3,685 - Cash Marketable Securities Receivables Inventory Raw Materials Work In Progress Finished Goods Notes Receivable Other Current Assels Total Current Assets Property Plant & Equipment Accumulated Depreciation Net Property Plant & Equipment Investment & Advances Other Non-Current Assets Deferred Charges Intangibles Deposits & Other Assets Total Assets Notes Payable Accounts Payable Current Portion Long-Term Debt Current Portion Capital Leases Accrued Expenses Income Taxes Payable Other Current Liabilities Total Current Liabilities Mortgages Deferred Taxes/Income Convertible Debt Long-Term Debt - Non-Current Capital Leases Other Long-Term Liabilities Total Liabilities Minority Interest Preferred Stock Common Stock Net Capital Surplus Retained Earnings Treasury Stock 459 23.28B 123 1,201 21.525 53.49B 51.62B 1,228 1,350 -9.04% 7.06% 1,228 1,385 35 20.56B 19.78 8,148 4,345 -46.67% 95.5733 94.6B 19.892% - 2.71% 597M BI5M 650 520 -40 100.72B 102.67B 968 -901 23.591 24,718 593 222.89B 220.57B 100M 3,695 18 7,628 26 98M 3,677 -51.63% 7,602 65,40% 41M 41M Net Income Growth 22.011 Net Margin 2.29% 21.848 21.22B 7,602 22.67B 1.428 Net Income After Extraordinaries Net Income Available to common 3,677 3,677 1.258 7,602 -693B 1.9 Other abilities -7.33B Shareholders Equity 35 928 Total Liabilities & Sharchalders Equity 256.548 EPS (Basic) EPS (Basic) Growth 0.92 -51.58% 34.928 65.22% 257.81B 3,975 1.9 0,00% 65.45% 3,998 Basic Shares Outstanding EPS (Diluted) EPS (Diluted) Growth Diluted Shares Outstanding EBITDA EBITDA Growth EBITDA Margin EBIT 12,810 4.18% 11,511 -10.14% 7.18% - 3,203 4,357 ii. Assignment Questions i. Using financial statement ratio analysis to determine the following for each of the two companies you selected for the latest of the two years you have to financial statements for (you can use multiple ratios for each element): Profitability Efficiency Liquidity Investment Financial gearing Analyse and discuss the differences observed between the two companies, based on your results from (). iii. Perform a direct analysis by looking at aspects like turnover, gross profit, net profit etc., between the selected companies. iv. Evaluate the two companies and discuss the differences between the results obtained in (ii) and (ii). Identify and explain difficulties when analysing two different companies in terms of the two methods used for your analysis ii and i above). Analyse the companies' financial reports and describe any positive, uplifting stories about activities and accomplishments done in the past year in their financial reporting. vii. Which of these two companies would you rather work for? Explain your answer. V. vi. Evaluation of Reports In evaluating your reports, the lecturer will primarily be looking at the following things: Evidence of your close and considered engagement with your source material and with the terms of the assignment; A clear sense of your contribution to this ongoing discussion; and . . A minimum of eight (8) resources should be used and correctly cited, using the Harvard method