HMCNEUTRAL

Current Ratio

1.28x

Higher than 42% of Consumer Cyclical sector peers

Updated 1051h ago

Sector Performance

42th percentile

HMC

1.28x

Sector Median

1.44x

Sector Avg

2.68x

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Deep Analysis

The current ratio measures a company’s ability to pay short-term debts with its short-term assets; a value of 1.28x means Honda has $1.28 in current assets for every $1 of current liabilities.

This is below the sector median of 1.44x, placing Honda in the 42nd percentile among Consumer Cyclical peers, indicating slightly lower short-term liquidity than typical competitors. Trend data for this metric is not available (N/A) for the year-over-year change, quarter-over-quarter change, or the last eight quarters. Because the level is below the median and no trend is available to assess direction, the liquidity risk appears moderate but uncertain in trajectory. This metric does not contradict the overall NEUTRAL verdict, as it highlights a manageable but below-average liquidity position that aligns with an investment stance neither bullish nor bearish.

Frequently Asked Questions

What does the Current Ratio tell investors about HMC?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does HMC's Current Ratio compare to its sector?

HMC's Current Ratio of 1.28x compares to a Consumer Cyclical sector median of 1.44x, placing it in the 42th percentile.

Who are HMC's closest peers by Current Ratio?

The closest Consumer Cyclical peers by Current Ratio include: CHPT (1.15x), XPEV (1.14x), RH (1.13x), BBY (1.12x), BALL (1.12x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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HMC

1.28x

Sector Median

1.44x

Sector Avg

2.68x

How HMC's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.