HMCHonda Motor Co., Ltd.
Is it safe?
Nothing alarming, nothing pristine: comfortable debt (A) and typical volatility.
Investment-grade balance sheet. A rule of thumb on leverage, not a credit rating.
Moderate price swings, typical volatility. Worst drawdown -43% · now 3% below its 52-week high.
Where this answer is blind. Altman sits structurally low for utilities and pipelines; Beneish runs high for fast growers, since sales growth alone lifts it; banks and REITs are excluded.
Can HMC take a bad year?
Honda Motor Co., Ltd. carries $6.71T of net debt at 2.38× EBITDA: a load its earnings can carry.
Net debt · as at FY2025 · under two and a half years of EBITDA, comfortable
- Net debt / EBITDA
- 2.38×
Net debt / EBITDA · 1.68× a year ago · the load is going up
- Cash runway
- 5+ years
Cash runway · burning $54.7B a quarter at the current rate
- Annualised volatility
- 32%
Annualised volatility · about as steady as the market itself
Details›
- Total debtFY2025
- $11.45T
- Cash and short-term investments
- $4.74T
- Net debt
- $6.71T
- EBITDA, trailing twelve months
- $2.83T
- Operating profit, trailing twelve months
- $1.21T
- Debt / equity
- 0.93×
- Total debt / EBITDA
- 4.05×
- Annualised volatilitytwo years of daily moves
- 32%
- Worst drawdown on file
- −43%
- Below its 52-week high
- 3.4%
Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.
Auto Manufacturers
Ranks #1 of 10 by RyuScore