HMCCAUTIOUS

HMC Debt-to-Equity Ratio Analysis

0.42x

Updated 587h ago·SEC filings & market data

Key Takeaway

Honda’s Debt-to-Equity Ratio of 1.14x means that for every dollar of shareholder equity, the company has $1.14 in debt, indicating a moderate reliance on borrowing to fund operations.

Sector Performance

29th percentile

HMC

0.42x

Sector Median

0.74x

Sector Avg

2.52x

Prior Period

1.14x(May 2026)

↑ Improving

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Deep Analysis

Honda’s Debt-to-Equity Ratio of 1.14x means that for every dollar of shareholder equity, the company has $1.14 in debt, indicating a moderate reliance on borrowing to fund operations.

This ratio is above the Consumer Cyclical sector median of 0.74x, placing Honda in the 66th percentile among its peers, meaning it uses more debt than most competitors. The metric shows no trend data: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no historical values or 8-quarter pattern are available. With the debt level above the sector norm but lacking any directional signal, the combination suggests stable leverage risk without recent deterioration or improvement. This metric supports the overall NEUTRAL verdict because the elevated ratio implies higher financial risk than peers, but the absence of trend prevents a bearish or bullish tilt.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about HMC?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

Who are HMC's closest peers by Debt-to-Equity Ratio?

The closest peers by Debt-to-Equity Ratio include: W (-1.00x), MSCI (-2.37x), SBAC (-2.75x), LCID (-3.08x), TDG (-3.41x).

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Learn More About Debt-to-Equity Ratio

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Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.