Essay on Principles of Finance

Essay on Principles of Finance Essay example
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Finance & Accounting
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Principal of Fin. 3 Table of Contents ASSIGNMENT 1 3 Overview of Financial Heath 3 Analysis of the Financial Statements 3 Analysis of Financial Ratios 4 ASSIGNMENT 2 5 References 6 Appendices 7 Appendix 1(a) General Motors 7 Appendix 1(b) General Motors 8 Appendix 1(c) General Motors – Key ratios 9 9 9 9 10 Appendix 2(a) Honda Motors 11 Appendix 2(b) Honda Motors 12 Appendix 2(c) Honda Motors – Key ratios 13 ASSIGNMENT 1 Assignment 1 would evaluate the financial position of General Motors and Honda Motors, so as to state the difference in the financial health and the probable reasons of the success and failure of both the companies…

Introduction

Honda Motor Corp. from Japan is considered as the fifth largest motorcycle manufacturer and auto-maker in the world. The company has a sustainable financial condition because it has posted a profit of ?234.4 billion, which is about US$2.7 billion in its first quarter of 2011. Moreover, the company has also posted a profit of ?135.92 billion in quarter 2. Honda has a huge market share in the Asian markets. Analysis of the Financial Statements As we can see in Appendix 1(a), that General Motors has to face a gross loss of US$ 8,791,000, in 2009. In 2010, and 2011, the gross profit was US$ 16,554,000, and US$ 19, 047,000 respectively. This indicates an improvement in the financial condition since 2009. However, the net income has reduced from 2009 to 2010 and 2011. In 2009, the net income was US$ 104,821,000, in 2010 it was US$ 6,172,000 and in 2011, US$ 9,190,000. ...
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