Honda Operating Income vs Cost of Revenue Analysis

HMC Stock  USD 37.23  0.09  0.24%   
Honda 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 Operating Income and its Cost Of Revenue accounts. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Honda Motor Co. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.

Operating Income vs Cost Of Revenue

Operating Income vs Cost of Revenue Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Honda Motor Operating Income account and Cost of Revenue. At this time, the significance of the direction appears to have strong relationship.
The correlation between Honda's Operating Income and Cost of Revenue is 0.63. Overlapping area represents the amount of variation of Operating Income that can explain the historical movement of Cost of Revenue in the same time period over historical financial statements of Honda Motor Co, assuming nothing else is changed. The correlation between historical values of Honda's Operating Income and Cost of Revenue is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Operating Income of Honda Motor Co are associated (or correlated) with its Cost of Revenue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Cost of Revenue has no effect on the direction of Operating Income i.e., Honda's Operating Income and Cost of Revenue go up and down completely randomly.

Correlation Coefficient

0.63
Relationship DirectionPositive 
Relationship StrengthSignificant

Operating Income

Operating Income is the amount of profit realized from Honda Motor operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Honda Motor Co is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.

Cost Of Revenue

Cost of Revenue is found on Honda Motor income statement and represents the costs associated with goods and services Honda provides. Indirect cost, such as salaries, is not included. In other words, cost of revenue is the total cost incurred to obtain a sale. It is more than the traditional cost of goods sold, since it includes specific selling and marketing activities.
Most indicators from Honda's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Honda Motor current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Honda Motor Co. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
At present, Honda's Enterprise Value Multiple is projected to slightly decrease based on the last few years of reporting.
 2021 2022 2023 2024 (projected)
Gross Profit3.0T3.3T3.8T2.5T
Total Revenue14.6T16.9T19.4T20.4T

Honda fundamental ratios Correlations

0.980.720.990.990.980.540.980.941.00.880.940.69-0.910.970.960.38-0.940.990.970.990.970.750.790.60.8
0.980.590.980.930.980.690.950.860.990.840.860.77-0.830.990.890.46-0.91.00.990.940.990.750.760.620.77
0.720.590.680.80.6-0.050.770.840.670.60.830.25-0.840.570.850.13-0.770.630.590.790.610.480.540.350.56
0.990.980.680.960.970.590.960.90.990.860.890.74-0.890.970.940.4-0.910.990.970.970.990.760.770.610.77
0.990.930.80.960.940.40.980.980.970.880.980.6-0.930.930.980.31-0.950.950.940.990.920.710.80.580.81
0.980.980.60.970.940.630.930.890.990.870.90.71-0.810.980.890.31-0.890.981.00.940.960.730.860.710.87
0.540.69-0.050.590.40.630.470.270.590.370.270.91-0.240.680.330.62-0.440.640.640.450.680.690.330.360.34
0.980.950.770.960.980.930.470.950.970.860.950.65-0.940.940.970.4-0.970.960.920.990.940.720.720.540.74
0.940.860.840.90.980.890.270.950.920.891.00.49-0.920.860.960.19-0.940.890.890.960.850.640.830.610.84
1.00.990.670.990.970.990.590.970.920.880.920.71-0.870.980.930.37-0.930.990.990.970.970.750.810.630.82
0.880.840.60.860.880.870.370.860.890.880.890.53-0.80.840.840.21-0.840.850.870.870.810.640.80.620.81
0.940.860.830.890.980.90.270.951.00.920.890.48-0.910.860.960.16-0.940.880.890.950.840.640.840.630.86
0.690.770.250.740.60.710.910.650.490.710.530.48-0.460.760.560.63-0.640.760.720.640.780.920.440.380.43
-0.91-0.83-0.84-0.89-0.93-0.81-0.24-0.94-0.92-0.87-0.8-0.91-0.46-0.82-0.96-0.310.88-0.86-0.81-0.94-0.84-0.59-0.65-0.42-0.65
0.970.990.570.970.930.980.680.940.860.980.840.860.76-0.820.880.47-0.90.990.980.940.980.740.760.580.77
0.960.890.850.940.980.890.330.970.960.930.840.960.56-0.960.880.36-0.930.920.890.990.90.690.710.50.72
0.380.460.130.40.310.310.620.40.190.370.210.160.63-0.310.470.36-0.370.440.330.380.470.5-0.18-0.26-0.16
-0.94-0.9-0.77-0.91-0.95-0.89-0.44-0.97-0.94-0.93-0.84-0.94-0.640.88-0.9-0.93-0.37-0.91-0.88-0.95-0.9-0.71-0.72-0.54-0.75
0.991.00.630.990.950.980.640.960.890.990.850.880.76-0.860.990.920.44-0.910.980.960.990.760.770.60.77
0.970.990.590.970.941.00.640.920.890.990.870.890.72-0.810.980.890.33-0.880.980.930.960.730.840.70.85
0.990.940.790.970.990.940.450.990.960.970.870.950.64-0.940.940.990.38-0.950.960.930.940.730.750.550.76
0.970.990.610.990.920.960.680.940.850.970.810.840.78-0.840.980.90.47-0.90.990.960.940.750.720.610.72
0.750.750.480.760.710.730.690.720.640.750.640.640.92-0.590.740.690.5-0.710.760.730.730.750.520.410.52
0.790.760.540.770.80.860.330.720.830.810.80.840.44-0.650.760.71-0.18-0.720.770.840.750.720.520.830.99
0.60.620.350.610.580.710.360.540.610.630.620.630.38-0.420.580.5-0.26-0.540.60.70.550.610.410.830.85
0.80.770.560.770.810.870.340.740.840.820.810.860.43-0.650.770.72-0.16-0.750.770.850.760.720.520.990.85
Click cells to compare fundamentals

Honda Account Relationship Matchups

Honda fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets20.5T21.9T24.0T24.7T28.4T29.8T
Short Long Term Debt Total7.5T7.7T8.1T7.7T8.8T9.3T
Other Current Liab802.5B796.7B1.6T1.9T2.2T2.3T
Total Current Liabilities5.8T5.7T6.0T6.6T7.6T8.0T
Total Stockholder Equity8.0T9.1T10.5T11.2T12.9T13.6T
Property Plant And Equipment Net7.7T7.9T8.2T7.9T9.1T9.5T
Net Debt4.8T5.0T4.4T3.9T4.4T2.7T
Retained Earnings8.1T8.9T9.5T10.0T11.5T12.1T
Cash2.7T2.8T3.7T3.8T4.4T4.6T
Non Current Assets Total13.2T14.3T15.1T15.1T17.4T18.2T
Non Currrent Assets Other3.5T4.0T4.2T4.4T5.1T5.4T
Cash And Short Term Investments2.9T3.1T3.9T4.1T4.7T4.9T
Net Receivables2.5T2.6T2.6T3.0T3.4T1.7T
Common Stock Shares Outstanding1.8B1.7B1.7B1.7B1.5B1.5B
Liabilities And Stockholders Equity20.5T21.9T24.0T24.7T28.4T29.8T
Non Current Liabilities Total6.4T6.8T7.2T6.5T7.5T7.9T
Inventory1.6T1.5T1.9T2.2T2.5T2.6T
Other Current Assets365.8B383.7B439.3B384.5B442.2B340.6B
Other Stockholder Equity(102.1B)(101.7B)(142.8B)(299.3B)(269.4B)(255.9B)
Total Liab12.2T12.5T13.2T13.1T15.1T15.8T
Property Plant And Equipment Gross7.7T7.9T8.2T7.9T9.1T9.5T
Total Current Assets7.3T7.6T8.8T9.6T11.0T11.6T
Accumulated Other Comprehensive Income(114.6B)196.7B990.4B1.4T1.6T1.7T
Short Term Debt3.2T3.0T3.1T3.3T3.8T4.0T
Accounts Payable958.5B1.1T1.2T1.4T1.6T939.1B
Other Liab1.7T1.9T1.8T1.9T2.2T2.3T
Other Assets969.4B442.3B516.2B560.1B644.2B676.4B
Long Term Debt4.5T4.7T5.0T4.4T5.0T5.3T
Property Plant Equipment3.1T3.0T3.1T7.9T9.1T9.5T
Current Deferred Revenue764.3B49.7B780.7B825.1B948.8B996.2B
Treasury Stock(113.3B)(177.8B)(273.9B)(273.8B)(246.4B)(234.1B)
Short Term Investments190.1B295.3B217.7B263.9B303.5B318.6B
Intangible Assets760.4B818.8B849.5B870.9B1.0T1.1T
Net Tangible Assets8.1T7.9T8.3T9.6T11.1T7.5T
Deferred Long Term Liab611.8B627.2B671.4B693.6B797.7B610.7B
Long Term Investments1.1T1.5T1.8T1.8T2.0T1.1T
Short Long Term Debt3.2T3.0T3.1T3.3T3.8T3.0T

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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 to better understand how to build diversified portfolios, which includes a position in Honda Motor Co. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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When running Honda's price analysis, check to measure Honda's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Honda is operating at the current time. Most of Honda's value examination focuses on studying past and present price action to predict the probability of Honda's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Honda's price. Additionally, you may evaluate how the addition of Honda to your portfolios can decrease your overall portfolio volatility.
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Is Honda's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Honda. If investors know Honda will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Honda listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.081
Dividend Share
49
Earnings Share
3.78
Revenue Per Share
11.8 K
Quarterly Revenue Growth
0.214
The market value of Honda Motor is measured differently than its book value, which is the value of Honda that is recorded on the company's balance sheet. Investors also form their own opinion of Honda's value that differs from its market value or its book value, called intrinsic value, which is Honda's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Honda's market value can be influenced by many factors that don't directly affect Honda's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Honda's value and its price as these two are different measures arrived at by different means. Investors typically determine if Honda is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Honda's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.