= My Two Companies: Honda Motor Company and Ford Motor Company 2. (Financial Ratio Analysis) Using 2017 & 2018 Balance sheet & Income statement for each company, compute the following financial ratios for each company: 1) Current ratio CR = CA/CL 2) Quick ratio (CA Inventory) / CL 3) Debt-to-equity ratio = TD / TE 4) Times interest earned ratio (Interest coverage ratio) = EBIT / Interest 5) Inventory Turnover - COGS / Inventory 6) Receivable turnover - Sales / Accts. Rec. 7) Total asset turnover - Sales / Total Assets 8) Profit margin Net Income / Sales 9) Return on Asset (ROA) = Net Income / Total Assets = = = - FORD CO Balance Sheet Fiscal year is Jan-Dec - 2018 2017 2018 2017 16.221 18 490 156,776 17.23B 20.44B 160,338 2.27% 146,732 145,732 3.28% 132,892 11.20 10.68 11.228 10.288 44B 124,439 8,453 9,122 -689 3.24% 6.788 53.29 52 21B 3.898 11S.OR 3.930 113.590 23,884 9.66% 14,606 -38.85% 9.11% 3.51% 65.198 29.86B 11,403 19,527 36.188 31.83B 35.338 31.323 $6.18 11,403 8,000 11,527 0.16% 36.610 -41 60% 10.41B 10.978 3,203 4,357 7.93B 8.13 204 256.54 257.81B 2,247 3,685 Income Statement Fiscal year is January-December. All valves USD Millions Sales/Revenue Sales Growth Cost of Goods Sold (COGS) incl. DSA COGS excluding DSA Depreciation & Amortization Expense Depreciation Amortization of Intangibles COGS Growth Gross Income Gross Income Growth Gross Profit Margin SG&A Expense Research & Development Other SGBA SGA Growth Other Operating Expense EBIT Unusual Expense Non Operating Income/Expense Non-Operating Interest Income Equity in Affiliates (Pretax) 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 Net Income Growth Net Morgin Net Income After Extraordinaries Net Income Available to Common Cash Marketable Securities Receivables Inventory Raw Materials Work In Progress 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 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 Convertiblc 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 459 123 21.521 53.491 23.28B 51.62B 1,201 1,350 1,228 -9.04% 7.06% 1,228 1,385 35 20.56B 19.7B 4,345 8,148 95.57B 94.6B -46.67% 19.89% 2.71%- 597M BISM 650 520 -40 100.72B 102.673 868 -901 23.591 24,718 593 7,628 222.89B 220.57 100M 3,695 18 98M 26 3,677 7,602 41M 41M 51.63% 65,40% 22.011 21.848 2.29% 3,677 22.678 21.228 7,602 1.428 1.258 3,677 7,602 1.9 Other Liabilities -7.33B Sharcholders Equity 35.978 Total Liabilities & Shareholders Equity 256.548 -6938 34.92B 0.92 -51.58% 65.22% 257.81B 3,975 0.00% EPS (Basic) EPS (Basic) Growth Basic Shares Outstanding EPS (Diluted) EPS (Diluted) Growth Diluted Shares Outstanding EBITDA EBITDA Growth EBITDA Margin EBIT 1.9 65.45% 3,998 12,810 11,511 -10.14% 4.18% 7.18% - 3,203 4,357 Balance Sheet Fiscal year is Apr - Mar HONDA CO Income Statement Fiscal year is April March. All values JPY Millions Sales/Revenue 2018 2017 2018 2017 Cash 2031B 19.500 15,361,146 13,999, 200 Marketable Securities Receivables Sales Growth 9.73% -4.12% 23.778 24.SBB 13.711 12.69B Inventory Raw Materials Work In Progress 4.78 4.43B Cost of Goods Sold (COGS) incl. ( D&A 12,154,503 11,018,396 COGS excluding D&A 10,700,387 9,681,988 Depreciation & Amortization Expense 1,454,116 1,336,410 627.31M 717.5M 8.398 7.54B Finished Goods Notes Receivable Depreciation Amortization of Intangibles 1,258,172 195,944 10.31% -3.85% 4.34B 62.33B 122.278 60.970 COGS Growth Gross Income 125 32B 3.206,643 2,980,804 $7.91B 37.388 Gross Income Growth 7.58% -5.10% 64.368 67.940 5.55B 20.88% 2,373,085 28.56B 6.12B 28.068 1.160 6.678 Gross Prof Margin SG&A Expense Research & Development Other SGSA $97.934 1.133 7.248 2,140,093 538,881 1,601,212 1,775,151 5453 4.933 SGA Growth 10.89% -18.88% 174.14B 176.31B EBIT 833,658 840,711 11.028 26 267 11.013 25.923 Unusual Expense -67,132 51,416 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 Payable Accounts Payable Current Portion Long-Term Debt Current Portion Capital Lenses Accrued Expenses Income Taxes Payable Other Current Liabilities Total Current Liabilities Mortgages Deferred Taxes Income Convertiblo Debt Long-Term Debt Non-Current Capital Leases Other Long-Term Liabilities Total Liabilities Minority Interest Preferred Stock Non Operating Income/Expense -61,581 32,980 3.648 48235M 32,389 3.88B 423.21M 9.268 50.498 9.223 Non-Operating Interest Income Equity in Affiliates (Pretax) Interest Expense 41,191 247,643 12,970 50.628 12,471 Interest Expense Growth 4.00% -31.27% 5.673 8.378 - Gross Interest Expense Pretax Income 12,970 1,114,973 12.471 842,193 34.948 37.41B Pretax Income Growth 32.39% 32.53% 9.613 8.823 100.048 105.913 Pretax Margin 7.26% - Income Tax -13,686 327,592 Common Stock Net 800.42M 774,6M 1.54B Income Tax - Current Domestic -2,956 196,149 1.59B Capital Surplus Retained Earnings 68.5B 62.433 Income Tax - Current Foreign 280,316 Treasury Stock 1.028 243. SSM Income Tax Deferred Domestic - 25,149 131.443 5.8285 Other Liabilities 4.31B Sharcholders Equity 74 IR Total Liabilities & Shareholders Equity 174.14 70.48 Income Tax . Deferred Foreign -316, 175 17631B 104.703 679,394 1,128,639 69,302 62,825 1,059,337 616,569 Equity in Affiliates Consolidated Net Incomo Minority Interest Expense Net Income Net Income Growth Net Margin Net Income After Extraordinaries Net Income Available to Common EPS (Basic) 71.81% 75.98% 6.90% 1 059,337 1,059,337 590.79 616,569 616,669 342.1 EPS (Basic) Growth 72.70% 78.98% Basio Shares Outstanding EPS (Dduted) 1,793 590.79 1.802 342.1