Honda Motor Company

Download the annual income statements, balance sheets, and cash flow statements for the last three fiscal years (2017-2019) from MarketWatch (www.marketwatch.com). Enter each companys stock symbol and then go to financials.

2. Find historical stock prices for each firm from Yahoo! Finance (http://finance.yahoo.com). Enter your stock symbol, click Historical Prices in the left column, and enter the proper date range to cover the last day of the month corresponding to the date of each financial statement. Use the closing stock prices (not the adjusted close). To calculate the firms market capitalization at each date, multiply the number of shares outstanding (see Basic Shares Outstanding on the income statement) by the firms historic stock price.

3. For each of the three years of statements, compute and interpret the following ratios for each firm:

Valuation Ratios

Price-Earnings Ratio (for EPS use Diluted EPS Total)

Market-to-Book Ratio

Enterprise Value-to-EBITDA (For debt, include long-term and short-term debt; for cash, include marketable securities.)

Profitability Ratios

Operating Margin (Use Operating Income after Depreciation)

Net Profit Margin

Return on Equity

Return on total assets

Liquidity Ratios

Current ratio

Quick (acid-test) ratio

Debt ratios

Debt ratio

Times interest earned ratio