Project Report

A study on FINANCIAL PLANNING AND FORECASTING in

HONDA MOTORCOMPANY LIMITED

BY:-
HARISH B
INTERNAL GUIDE USN: 1MJ16MBA02
Dr LAXMAN RAO G
HOD MBA
MBA DEPARTMENT
Introduction

 Industry profile

 Nature of business

 Vision
“look for solution harmonious atmosphere; transfer the social paradigm.”

 Mission
“Maintaining a worldwide point of view, we are devoted to supplying products of the uppermost
quality, yet at a sensible price for universal customer approval.”
CONCEPTIAL BAGROUND

•FINANCIAL PLANNING

•FORECASTING

OBJECTIVE

Understand the money related position of the HMC Ltd.

Analysis of long catch and here and now monetary arrangement spending
program .

Bar to take focal points of future monetary arranging.

 FINDING
Net profit tourn over
4.5
4.18
4.09
4

3.45
3.5

2.5
2.5 2.41

net profit tourn over in crores

2

1.5

0.5

0
2013 2014 2015 2016 2017
 solvency ratio
45.00
40.47
40.00 38.87 38.54

34.28
35.00
31.70
30.00

25.00
solvency ratio
20.00

15.00

10.00

5.00

0.00
2013 2014 2015 2016 2017

Net profit + depreciation

Solvency Ratio =
Total Liabilities
 Debt Equity Ratio
1.65
1.62

1.60 1.59

1.55

1.51
1.50
1.50
debt equity ratio

1.45
1.45

1.40

1.35
2013 2014 2015 2016 2017

Total Debt
Debt-equity Ratio =
Equity / share holder’s fund
 Net profit margin
0.16
0.15

0.14

0.12 0.12
0.12
0.11

0.10 0.10

0.08
net profit margin

0.06

0.04

0.02

0.00
2013 2014 2015 2016 2017

Net profit after tax

Net profit margin =
Sale
 Return on equity
0.30
0.28

0.25
0.25

0.21
0.20
0.20
0.18

0.15
return on equity

0.10

0.05

0.00
2013 2014 2015 2016 2017

Net Profit After Tax

Return-on-equity =
Equity Share Capital
 cash tourn over ratio
5.00

4.50 4.38

4.00

3.50

3.00 2.82

2.50
cash tourn over ratio

2.00

1.50 1.25
1.11 1.05
1.00

0.50

0.00
2013 2014 2015 2016 2017

Net Annual Sales

Cash Turnover Ratio =
Cash
SUGGESTIONS
•They should reduce their debts of the company
•Company should focus on the decrease in the depreciation level
•They should maintain the debtors and share holders fund in 2:1 ratio
•Profits should be maintained stably increase
•They should reinvest their funds which is coming as a profit
•Company should maintain the minimum cash as per the requirement.