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Financial Analysis of Hero Honda

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Financial Analysis of Hero Honda
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Financial analysis of hero honda

Submitted By:
Luke Thachet [F10026]
PraneetaSaboo [F10040]
Ruth Sequeira [F10049]
Shruthi S [F10052]

ACKNOWLEDGEMENT

We would like to express our sincere gratitude to Mr.Dwarakanathan for guiding us through to understand the concepts of Commercial and Retail Banking. We would also like to thank him for his constant support that he offered for the successful completion of this project.
Working on this project has helped us gain insights into the Automobile Industry. It also aided us in the practical application of the concepts covered in academics.

Table of Contents

ACKNOWLEDGEMENT 1 OVERVIEW OF THE COMPANY 2 ABSTRACT 2 1. CREDIT RISK ASSESSMENT 2 1.1. STAGE I: FINANCIAL RATIOS 2 1.1.1. Current Ratio: 2 1.1.2. Total Outstanding Liabilities to Total Net Worth: 2 1.1.3. EBDIT to Interest Coverage Ratio: 2 1.1.4. PAT to Net Sales: 2 1.1.5. Return On Capital Employed: 2 1.1.6. (Inventory + Receivables)/ Sales: 2 1.2. STAGE II: HISTORICAL COMPARISON 2 1.3. STAGE III: INDUSTRY COMPARISON 2 1.4. STAGE IV: CONTINGENT LIABILITIES 2 1.5. STAGE V: INDUSTRY RISK 2 1.5.1 Competition & Market Risk: 2 1.5.2. Industry Cyclicality: 2 1.5.3. Regulatory Risk: 2 1.5.4. Technology & Quality Control: 2 1.5.5. User Profile: 2 1.5.6. Inputs Profile: 2 1.6. STAGE VI: MANAGEMENT RISK 2 1.6.1. Integrity: 2 1.6.2. Expertise, Competence/ Commitment: 2 1.6.3. Track Record: 2 1.6.4. Structure and Systems: 2 1.6.5. Capital Market Perception: 2 1.7. STAGE VII: TOTAL COMPUTATION 2 2. NEW MODEL 2 2.1. RELEVANT RATIOS FOR MANUFACTURING COMPANIES 2 2.1.1 CAPITAL STRUCTURE OF THE COMPANY 2 2.1.2. INTEREST COVERAGE 2 2.1.3. DEBT SERVICE COVERAGE RATIO 2 2.1.4. PROFITABILITY MARGIN 2 2.1.5. RETURN ON CAPITAL EMPLOYED 2 2.1.6. CURRENT RATIO 2 2.1.7. FIXED ASSET TURNOVER RATIO 2 2.1.8. INVENTORY TURNOVER RATIO 2 2.1.9.
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