FMA PRESENTATION about the company profile and their market share in the year 2023 of honda
ZohaibButt17
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Jun 05, 2024
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About This Presentation
honda comapny presentation about their market share in the year of 2023
Size: 8.78 MB
Language: en
Added: Jun 05, 2024
Slides: 8 pages
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HONDA ATLAS HTTPS://WWW.ATLASHONDA.COM.PK/ PRESENTED BY GROUP 1
The publically traded firm Atlas Honda Limited was founded on October 16, 1962. It is a joint venture between Atlas Group, one of Pakistan's most well-known commercial conglomerates, and Honda Motor Company Limited Japan, the biggest and most reputable motorbike brand in the world. The company has effectively led the two-wheeler market for more than 50 years and is regarded as a pioneer in the nation's motorbike sector. With a motorcycle unit sales share of 71.8% in 2023, Atlas Honda is expected to have the highest market share in the selected region. ABOUT US
Current Ratio The debt-to-net-worth ratio Receivables Ratio Payables Ratio FINANCIAL RATIO FINDINGS, ANALYSIS & INTERPRETATIONS: 2022= 1.45 2021= 1.40 Interpretation The current ratio of 1.45 indicates that the company has $1.45 in current assets for every $1 in current liabilities. This suggests that the company has a relatively strong liquidity position (2022):= 0.63 (2021)= 0.70 Interpretation The debt to net worth ratio of 0.63 indicates that the company can use 63% of its worth to pay off any debt obligations. This is risky but not worse, as current worth is higher than its debts. (2022):= 0.79 (2021):=0.737 Interpretation The company's average collection of outstanding credit sales during the given period is indicated by the accounts receivable ratio of 79. This shows that the process of turning receivables into cash is highly efficient. (2022)= 28.98 (2021):= 22.54 Interpretation The company pays its vendors or suppliers on average 28.98 times in a given period, according to the accounts payable turnover ratio of 28.98. This implies a prompt resolution of debts and an effective payment system.
The return on Asset (2022):= 0.123 (2021):= 0.093 Interpretation The Net Sales to Total Assets ratio of 12.3 indicates that, on average, the company generates $12.3 in sales for every dollar of assets it possesses. This suggests efficient utilization of assets to generate revenue and reflects strong operational efficiency. FINANCIAL RATIO FINDINGS The return on Equity: net profit after taxes equity 2022):= 0.282 (2021):= 0.204 Interpretation The net profit after taxes to shareholders' equity ratio of 28.2% indicates that for every dollar of shareholders' equity, the company generates 28.2 cents in net profit after taxes. This suggests a favourable profitability and a strong return on investment for shareholders.
RISK AND RETURN FINDINGS, ANALYSIS & INTERPRETATIONS: Interpretation: y = a + bx + u Y represents the stock or fund's performance. The excess return of the stock or fund is called alpha. which in this instance is obviously less than 1, making it an extremely dangerous stock to buy. The performance of investments is inferior to the market. Variance & Standard Deviation The portfolio is bearing greater risk the higher the standard deviation; conversely, the lower the standard deviation, the higher the portfolio A standard deviation of less than one indicates that the price typically stays in the neighborhood of its mean. Over time, the market's volatility becomes smaller.
Beta: Beta=-0.119 As Beta is negative it shows that it is defensive.It is anticipated that a stock with a negative beta will move against the direction of the market as a whole. A stock with a negative beta may have a tendency to decline while the market rises, and vice versa Market Returns: Expected Return (ER): The market is expected to experience a negative return, suggesting a projected decrease in overall market value over the specified period. Variance: A low variance suggests that market returns are generally quite near to the average expected return. This suggests that the market is stable and that return variance from the mean is low . Standard Deviation: the market exhibits low volatility
Stock Returns: Expected Return (ER): Over the given period, it is estimated that the stock will experience a negative return, meaning that its value will decline. variation: Standard Deviation: The higher standard deviation supports the idea that the stock is comparatively more erratic. In contrast to the market, individual stock returns are anticipated to diverge from the mean more dramatically.
CONCLUSION: Atlas Honda presents a sound financial image and exemplifies efficient resource management. The organization demonstrates a robust cash position, guaranteeing its ability to promptly fulfill immediate obligations. Atlas Honda keeps a cautious capital structure, depending more on equity than debt, as part of their conservative financial posture. The company's capacity to comfortably pay interest on its debts indicates a sound financial position, which adds to its resilience in trying times. . When it comes to profitability, Atlas Honda displays a respectable net profit margin, a fair gross profit margin, and efficient asset use.