Honda Motor Enterprise Value vs Average Assets Analysis

HMC -- USA Stock  

Earning Report: November 8, 2019  

Honda Motor financial indicator trend analysis is much more than just examining Honda Motor latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Honda Motor is a good investment. Please check the relationship between Honda Motor Enterprise Value and its Average Assets accounts. Please also check Risk vs Return Analysis.

Enterprise Value vs Average Assets

Accounts Relationship

Enterprise Value vs Average Assets

Significance: Weak Relationship

Enterprise Value diversification synergy
Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Honda Motor Enterprise Value account and Average Assets

Correlation Coefficient

0.37
Relationship DirectionPositive 
Relationship StrengthVery Weak

Enterprise Value

Enterprise Value (or EV) is usually referred to as Honda Motor theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Honda Motor debt, but would also pocket its cash. Enterprise Value is more accurate representation of Honda Motor value than its market capitalization because it takes into account all of Honda Motor Company Ltd existing debt. Enterprise value is a measure of the value of a business as a whole; calculated as [MarketCap] plus [DebtUSD] minus [CashnEqUSD].

Average Assets

Average asset value for the period used in calculation of Return on Average Equity and Return on Average Assets; derived from [Assets].
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