Ratio Analysis

National University of Modern Languages (Lahore Campus) 1

Project of Financial Management

Ration Analysis of Suzuki and Honda Motors
(2010-2011)



Submitted to: Mr. Imad ud Din
Submitted by: Muhammad Ammar Hassan
Roll No: L-11389
Muhammad Umair Mukhtar
L-11388









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ACKNOWLEGDEMENT


In the name of Allah, Most Gracious, Most Merciful Praise be to Allah, the Cherisher and
Sustainer of the worlds; Most Gracious, Most Merciful; Master of the Day of Judgment. The do
we worship, and The aid we seek. The way of those on whom Thou hast bestowed Thy Grace,
those whose (portion) is not wrath, and who go not astray.
(Ameen)


We heartily thankful to our teacher Mr. IMAD UD DIN whose encouragement, guidance and
support enabled us to develop the subject Financial Management. With his dedicated lectures we
were able to practically understand and apply what we have learned in the classes.



















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TABLE OF CONTENTS


Sr. Contents Page #

1 Introduction

2 Executive Summary

3 SWOT Analysis

4 Horizontal Analysis (2010 2011)

5 Calculation of Ratio (2010 2011)

6 Ratios Analysis

7 Ratio Comparison of both Companies

8 Conclusion

9 Recommendations

10 References


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AUTOMOBILE INDUSTRY
The auto market is one of the largest segments in world trade. The annual size of automotive
export trade in the world has grown to a massive level of over US$ 600 billion, which accounts
for about 10 per cent of the world export. Changing models, improving fuel efficiency, cutting
costs and enhancing user comfort without compromising quality are the most important
challenges of the auto industry in a fast globalizing world. Hence there is a need for exploring
the industrial complementarities in the region for better quality, favourable costs, fuel
efficiency and attractive designs. Therefore, the requirement of information exchange in the
region is much more pronounced now than ever before for keeping the auto industry afloat and
competitive.
Pakistan Overview
Since its independence in 1947, Pakistan has been able to transform itself to a large extent,
from a completely agrarian economy to a fairly developed techno-industrial base. Besides
textiles, Pakistans exports are largely manufactured items such as consumer durables and
engineering products. However, it is also a fact that Pakistan has not been able to realize its
potential due to internal and external compulsions and thus it lags behind many developing
countries of the world. The following economic indicators constitute the tell -tale of Pakistans
development performance:




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Automobile Industry of Pakistan
The existing population of automotive vehicles in Pakistan is 3.9 million. The annual demand is
estimated at 300,000, two thirds of which is being met from local sources and imports and the
remaining one third is left unmet. The market value of automotive vehicles in dollar terms is
estimated at more than 1 billion, out of which import constitutes around US$ 200 million. The after
market of auto parts is estimated at US$ 500 million, imports and local production taken together.
Production figures of automobiles are given in the following tables:
Pakistans strength of production elements lies in its vast reservoir of land, labour and even capital.
But technology and purchasing power of the consumers are its major weaknesses. Technology
requirements are being met by joint ventures and technology tie-ups with foreign players in
automotive sector. Japanese, Korean and European entrepreneurs have invested almost US$ 1.5
billion in Pakistans automotive sector. The local investment in the automotive sector is
approximately US$ 1 billion.








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The Group
Atlas Honda Limited is a joint venture between the Atlas Group and Honda Motor Co., Japan.
The foundation of the Atlas Group was laid in 1962 with the establishment of Shirazi
Investments (Pvt) Limited with a capital of half a million rupees and three men doing business in
trading shares and real estate. The growth of the Atlas Group is the result of its focus on good
corporate governance. Today Atlas is a diversified group dealing in engineering, financial
services and trading. It consists of seven public limited companies out of which six are quoted on
the Stock Exchanges in Pakistan, and five private limited companies. Atlas shareholders equity
now stands over 25 billion rupees; assets have increased to over 60 billion rupees; personnel
strength is over 7000 and annual sales have crossed 60 billion rupees. The Group paid taxes of
Rs. 15 billion over 2% of the total government revenues.
All this progress is due to the Group's reliance on the intellectual capital, dedicated efforts and
team spirit of all the stakeholders. Every member is striving for excellence and taking pride in
the Group's motto:
Vision

Market leader in the motorcycle industry, emerging as a globally competitive centre of
production and exports.

Mission
A dynamic, profitable and growth oriented company through market leadership, maximizing
export and excellence in quality and service; to ensure attractive returns to equity holders; reward
employees according to their ability and performance; to foster a network of researchers and
engineers ensuing unique contributions to the development of the industry; customer satisfaction
and protection of the environment by producing emission friendly green products and to remain a
good corporate citizen fulfilling its social responsibilities in all respects.



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Our Slogan
For Honda to remain Honda, and for everyone to realize their aspirations, we must believe in
"The Power of Dreams"
SWOT




STRENGHTS WEAKNESSES OPPORTUNITIES THREAT

Strengths:
Qualified and well trained staff
Biggest sale network
Best production plant in the world
Financial Strong
Biggest market share
People Trusted Products
High Quality Products
ISO Certified
Resale value
Customer Care
Customized products
Brand Image
Availability of Spare parts
Best delivery system (Transportations)

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Weaknesses
High Price of Products
Political instability
Low per capita income of public
Less overhead rates of competitors
Increasing Prices of Oil
Rising inflation

Opportunities
Industry expansion
Technology upgrading
Strong Position
Market Integration opening up
Opportunity growing in other countries
Newly developed Areas/Markets (e.g. Gawader)
Favorable govt. policies
Big Market
Economy is expanding

Threats
Chinese cheaper products challenges
Free Trade & WTO
Strong competition from competitors in near future
Instability of Government
High rate of Taxation








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INTRODUCTION

Suzuki

It is third selling brand in Pakistan and it also targets the villagers. Its image is also approximately
same as Yamaha in the mind of people and it also targets the village areas.
Pak Suzuki Motors Company Ltd.
Is a company assembling and distributing Suzuki Japan's cars in Pakistan. Currently they are one
of the most successful motor companies in Pakistan.

The firm was founded in 1983 as a joint venture between PAK and Suzuki, formalizing the
arrangement by which AWAMI Auto Ltd. had produced the Suzuki SS80 from 1982. Suzuki
originally owned 25% of the stock, and has gradually increased their holding; they now own
73.09%. The company now assembles a wide range of Suzuki vehicles and aims to produce
150,000 vehicles per year. (2005 production was 100,000)



Our Vision

To be Excellent All Around

Our Mission

To provide automobile of international quality at competitive price

These are Mission and Vision Statement of Pak Suzuki, and they always try to improve skills of
employees by imparting training and inculcating in them a sense of participation.

To achieve maximum indigenization and promote the automobile vending industry.

To contribute to Pakistani society through development of industry in general and automobile
industry in particular.





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Statement of Ethics and Business Practices
Here are the code of ethics and Business Practice of Pak Suzuki Motors Company,

1. Pak Suzuki insists on integrity and honesty of its employees in doing business. Any
unfair or corrupt practices to solicit business is fundamentally inconsistent with business
codes of company

2. Pak Suzuki believes in compliance to regulatory obligation

3. Pak Suzuki believes in free and fair business practices and open competitive markets.
Developing any association with competitors to distort the pricing and supply of products
is contradictory to companys business code of conduct.

4. Pak Suzuki believes in transparency in business transaction and they are to be recorded
accurately and fairly in books of accounts in accordance with standard procedure.

5. Pak Suzuki expects its employees to act in companys best interest while holding
confidential information. Company expects its employees neither to solicit internal
information from other nor to disclose companys data or any other material information
to any un- authorized person/body.

6. Pak Suzuki believes in individuals respects and growth. Its employment policies do not
discriminate on basis of race, religion, gender or any other factor.

7. Pak Suzuki does not believe in political affiliation.



Corporate Strategy

Pak Suzuki is built on the idea of a responsible corporate citizenship thereby managing
environmental, safety & occupational health matters as an integral part of our business. In
fulfilling this responsibility Pak Suzuki adheres to the following principles:

1) We are committed to provide top quality products to the satisfaction and requirement of
our customers.

2) We conduct our operations in compliance with applicable environmental, occupational
health & safety laws and regulations.

3) We recognize the interrelationship between energy and the environment, and we promote
the efficient use of energy throughout our system.
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4) We ensure safe disposal of waste generated from our facility

5) We minimize the discharge of waste materials into the environment by utilizing
responsible pollution control practices.

6) We will continuously seek opportunities to improve our adherence to these principles.


As it is clearly mentioned in their Vision Statement that to be excellent all around, and they
always operate in Environment friendly. And their Product will always be the environment
friendly.

With the globalization of markets, greater foreign competition, and the reduction of entry
barriers, it becomes all the more important to benchmark a companys financial indicators on a
worldwide basis. World stock markets have recently witnessed a return to fundamental financial
analysis. Sound management as opposed to hype will in the long run generate shareholder value


.

























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SWOT Analysis


Strengths:

Highest Market Share
Low Price Vehicles
Resale of Local Assembled Cars
Large Distribution Channels
Rising per capita income with changing demographic distribution
Highly Innovative and deep product line
Highly maintained supply chain
Well Managed and highly competitive staff
Well defined and bureaucratic organizational structure
complete understanding between Distributors
Easy availability of spare parts

Weakness:

Scarcity of raw material
Lack of coordination and linkage with Government/semi government supporting
bodies
Less focus on Looks and Design Less Technical Training Institutes
Less distribution channels in sub urban areas

Opportunities:

Increasing Demand for Cars
Efficient EFI engines
Large Market size to operate
Global spare part market
Space saving Small size CNG cylinders



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Threats:

Tough Competitors like Toyota and Honda
Foreign Investment and setup production facilities
Smuggling of Auto Parts
Heavy Taxes
Inflation Rate

Competition from cheaper imported cars Increase in Fuel Prices.








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HORIZENTAL ANALYSIS



Operating Results
2011 2010 2009
Rupees in Thousand
Production Volume
Motor Car 92529 78840 51032
Motor Cycle 20210 19618 14530

Sales Volume
Motor Car 92705 79138 52011
Motor Cycle 21154 190133 14659
Capital Employed

Sales Revenue 52718563 42642762 26234061
Gross Profit 1869410 1003787 569299
Profit Before Taxation 1365297 668015 427843
Profit After Taxation 794421 211143 255219
Dividend 164600 41150 41150
Profit Retained 629821 169993 214069
Share Capital 822999 822999 822999
Reserves 13629414 13459414 13244414
Share Holder Equity 15293032 14497915 14325600
Current Liabilities 8008085 4752449 3325134
Fixed Assets 4200317 4226582 4684671
Non Current Assets 515806 710650 543430
Net Current Assets 18584994 14313132 12427633















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RATIO ANALYSIS OF SUZUKI MOTORS


Accounting Profit:
A company net income as reported on its income statement

Net Worth:
The capital supplied by common stock holder paid in capital rational
earning.


TOTAL EQUITY

Total Equity:
Common stock equity + preferred stock equity

2010 14497915
2011 15293032


Analysis: Total equity in 2011 is greater then in 2011 so it shows that the company has improved
its position with time.


Non Operating Assets:

The investment in subsidies for e.g. land held for future use


LIQUIDITY RATIO

Networking Capital:

Current assets current liabilities

2010 14313132 4752449 = 9560683
2011 18584994 - 8008085 = 10576909

Analysis: The ratio has showed that it has improved its position up to $ 1016226.







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Current Ratio:

Current asserts / current liabilities

2010 14313132 / 4752449 =3.0117
2011 18584994 / 8008085 =2.3207

Analysis: The current ratio of company has showed that it has improved to 0.691 % and its a
great gain as per industrial average so its on great gain.


Quick Acid Ratio:

Quick assets / current liabilities

2010 5565101 / 4752449 = 1.1709
2011 5662598 / 8008085 = 0.7071

Analysis: It showed that the company has lost in last year. Its in loss in preceding years.

How to find Quick Assets

Quick assets = current assets inventory prepaid expenses

2010 14313132 - 8748031 = 5565101
2011 18584994 - 12922396 =5662598

Analysis: Quick ratio again shows the gain in quick asset ratio.


FINANCIAL LEVERAGE RATIOS

Debt to Equity Ratio:

Total Debts / Total Equity

2010 4752449 / 14497915 = 0.327
2011 8008085 / 15293032 = 0.5236

Analysis: Debt to equity ratio has showed that the firm has gained 0.1966% gain in this year.






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Debt to Acid Test Ratio:

Debt / Total Assets

2010 4752449 / 19250364 = 0.246
2011 8008085 / 23301117 = 0.343

Analysis: Here, the debt to asset ratio of the company had showed the gain in debt to Acid.

Interest Coverage Ratio:

EBIT/ Interest Charge

2010 668015 / 31.61=21133.03
2011 1365297/ 58.18 =23466.78

Debt To Total Capital:

Debt/Total Capital

2010 4752449 / 38500728 = 0.1234
2011 8008085 / 30586064 = 0.2618


(Total Capital= Total Liabilities +Owner Equity - Current Liabilities)

2010) = 19250364 + 14497915 4752449 = 38500728
2011) = 23301117 + 15293032 8008085 = 30586064

Analysis: The debt to total capital ratio had showed increased that showed increase in liabilities.


PROFITABILITY RATIOS

G.P Margin:
G.P/ Net Sales (100)

2010 1003787 / 42642762 (100) =2.35
2011 1869410 / 52718563 (100) =3.546

Analysis: This ratio showed increased in gross profit and hence in the companys revenue





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Net Profit Margin:

Net Profit/Net Sales (100)

2010 211143 / 42642762 (100) = 0.495
2011 794421 / 52718563 (100) = 1.5069

Analysis: This ratio has showed high increase in net profit margin by 1.0119 and its a great gain
as shown by above ratio.

Return On Total Assets:

Net Income / Total Assets

2010 211143 / 19250364 = 0.0109
2011 794421 / 23301117 = 0.03409

Analysis: Return on capital ratio had showed that it has increased directly indicates the increase
in Net income

Return On Investment:

Income After Tax/Total Assets

2010 211143 / 19250364 = 0.0109
2011 794421 / 23301117 = 0.0340

Analysis: This shows increase in EAT.

Return On Equity:
Net Profit After Tax/ Share Holder Equity
2010 213465/

ACTIVITY RATIO


AC/R TURNOVER:
Net Credit Sales/ Avg Account Receivable

2010 42642762 / 672616 = 63.399
2011 52718563 / 952405 = 55.35

Analysis: This ratio shows that they are collecting early AC/R as compared to last year



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Avg Collection Period:

Days In Year / Account Receivable Turn Over

2010 365 / 63.399 = 5.76
2011 365 / 55.35 = 6.59
Analysis: shows their collection period increase this year

Inventory Turnover:
C.G.S/ Avg Inventory

2010 4163875 / 8748031= 0.4759
2011 50849153 / 12922396 = 3.934

Analysis: This ratio has showed a great gain so is the very great increase in Cost of goods sold

Avg Age Of Inventory:

Days In Year/ Inventory Turnover

2010 365 / 0.4759 = 766.96
2011 365 / 3.934 = 92.780

Analysis: Average age of inventory had showed increase in inventory turnover.

Operating Cycle:

Avg Collection Period +Avg Age Of Inventory

2010 5.76 + 766.96 = 772.72
2011 6.59 + 92.780 = 99.37

Analysis: This shows that average period decrease and improve as compared to last year

Total Assets Turnover:

Net Sales/ Avg Assets

2010 42642762 / 19250364 = 2.2151
2011 52718563 / 23301117 = 2.2624

Analysis: The total turnover ratio is almost the same remained almost the ame. So there is no
great change but slightly had increased



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RATIO ANALYSIS OF HONDA MOTORS


Accounting Profit:

A company net income as reported on its income statement

Net Worth:

The capital supplied by common stock holder paid in capital rational earning.


TOTAL EQUITY

Total Equity:

Common Stock Equity + Preferred Stock Equity

2010 2000000
2011 2000000

Analysis: The total liquidity ratio has remained constant in both the years


Non Operating Assets:

The investment in subsidies for e.g. land held for future use


LIQUIDITY RATIO

Networking Capital:

Current assets current liabilities

2010 5434463
2011 4909807

Analysis: This ratio showed increase in liabilities as per result.




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Current Ratio:

Current Assets / Current Liabilities

2010 5434463 / 5636805 =0.964103
2011 4909807 / 8479567 =0.579016

Analysis: The current ratio of the company had showed far decrease so the company is in loss

Quick Acid Ratio:

Quick Assets / Current Liabilities

2010 5313095 / 5636805=0.942572
2011 4803768 / 8479567=0.566511

Analysis: This showed decrease in quick asset so as increase in liabilities

Quick Assets = Current Assets Inventory Prepaid Expenses

2010 5434463 121368 =5313095
2011 4909807 106039 =4803768

Analysis: This also shows the decreasing trend in 2011 when comparing with 2010


FINANCIAL LEVERAGE RATIOS

Debt To Equity Ratio:

Total Debts / Total Equity

2010 8945783 / 2000000 =4.472892
2011 10573427 / 2000000 =5.286714

Analysis: This shows increase in total debts hence showed the company in loss as the value of
debts increases






Debt To Acid Test Ratio:
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Debt / Total Assets

2010 8945783 / 5434463 = 1.646121
2011 10573427 / 4909807 =2.153532

Analysis: The acid test ratio of this company had showed increase in Debt
Interest Coverage Ratio:

EBIT/ Interest Charge

2010 532852 / 455128 =1.170774
2011 291882 / 152255 =1.91706

Analysis: This shows slight increase in Earnings before interest and taxes.

Debt To Total Capital:

Debt/Total Capital

2010 8945783 / 9612450 =0.930645
2011 10573427 / 12156760 =0.869757

Analysis: This shows increase in the total capital while comparing it with Debt

(Total Capital= Total Liabilities +Owner Equity - Current Liabilities)


PROFITABILITY RATIOS


G.P Margin:

G.P/ Net Sales (100)

2010 239545 / 15854142 =0.015109
2011 199310 / 15854142 =0.012571

Analysis: This shows great loss as the Gross profit margin is less as far as last year is concerned





Net Profit Margin:

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Net Profit/Net Sales (100)

2010 852200 / 15854142 =0.053753
2011 298452 / 15854142 =0.018825

Analysis: The net profit margin had showed decrease in this years net income




Return on Total Assets:

Net Income /Avg Total Assets

2010 852200 / 5434463 =0.156814
2011 298452 / 4909807 =0.060787

Analysis: Return to capital ratio has showed increase in average total asset

Return On Investment:

Income After Tax / Total Assets

2010 852200 / 5434463 =0.156814
2011 298452 / 4909807 =0.060787

Analysis: As per in last ratios , this shows the same trend as before hence income after tax is has
decreased

Return On Equity:

Net Profit After Tax/ Share Holder Equity

2010 852200 / 2000000 = 0.4261
2011 298452 / 2000000 =0.149226

Analysis: Return to capital has showed high decrease as net profit after taxes has decreased







ACTIVITY RATIO

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AC/R Turnover:

Net Credit Sales/ Avg Account Receivable

2010 15854142 / 978745 =16.19844
2011 22026109 / 1245786 = 17.68049

Analysis: It showed increase in the Net capital sales



Avg Collection Period:

Days In Year / Account Receivable Turn Over

2010 365 / 16.19844=22.53303
2011 365 /17.68049= 20.64422

Analysis: This showed a great decrease in account receivable.

Account Receivable Turn Over:

Net credit Sales / Account Receivable

2010 15854142 / 978745 = 16.19844
2011 22026109 / 1245786 =17.68049

Analysis: This shows the increase in net credit sales , inverse of the past trend
Inventory Turnover:

C.G.S/ Avg Inventory

2010 16093678 / 121368 = 132.6023
2011 21826799 / 106039 =205.8375

Analysis: This shows increase in the Cost of goods sold so as decrease in average inventory









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Avg Age Of Inventory:

Days In Year/ Inventory Turnover

2010 365 / 132.6023 =2.752592
2011 365 /205.8375 =1.773243

Analysis: This showed increase in Inventory turnover hence is the time period decreased


Operating Cycle:
Avg Collection Period +Avg Age Of Inventory

2010 22.53303 + 2.752592=25.285622
2011 20.64422 +1.773243= 22.417463

Analysis: Operating cycle has showed again the decrease in the 2011



Total Assets Turnover:
Net Sales/ Avg Assets

2010 15854142 / 5434463 =2.917334
2011 22026109 / 4909807 =4.486146

Analysis: This showed great increase in net sales so as increase in total asset turnover















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RATIO ANALYSIS OF BOTH COMAPNIES

Total Equity
2010 2011
Suzuki
Motors 14497915 15293032
Honda
Motors 2000000 2000000

Analysis: This ratio showed that Honda is in the same trend however Suzuki has increased its
total equity.

Networking Capital
2010 2011
Suzuki
Motors 9560683 10576909
Honda
Motors 5434463 4909807

Analysis: The networking has showed the increasing trend of Suzuki from 2010 to 2011
however, Honda motors have showed the decreasing trend.

Current Ratio
2010 2011
Suzuki
Motors 3.0117 2.3207
Honda
Motors 0.964103 0.579016

Analysis: The analysis of ratio has showed that Suzuki Motors has decreased so as of Hondas

Quick Asset Ratio
2010 2011
Suzuki
Motors 1.1709 0.7071
Honda
Motors 0.942572 0.566511

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Analysis: Both the companys showed the decreasing trend in both the companies


Debt to Equity Ratio
2010 2011
Suzuki
Motors 0.327 0.5236
Honda
Motors 4.472892 5.286714

Analysis: this analysis shows that however both the companies has increased its debt to equity
ratio but the analysis showed that Honda is greater than Suzuki

Debt to Acid test Ratio
2010 2011
Suzuki
Motors 0.246 0.343
Honda
Motors 1.646121 2.153532

Analysis: Here, acid test ratio shows the increase in trends but again Honda is in profit while
comparing it with that of Hondas.

Interest Coverage Ratio
2010 2011
Suzuki
Motors 21133.03 23466.78
Honda
Motors 1.170774 1.91706

Analysis: Interest coverage ratio of Suzuki has showed increases so as of Hondas. However,
while comparing both we see that Suzuki is rather much greater then Hondas.

Debt to Total Capital Ratio
2010 2011
Suzuki
Motors 0.1234 0.2618
Honda
Motors 0.930645 0.869757

Analysis: The debt to equity ratio of Suzuki rather of increasing still less then that of Honda.
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G.P Margin
2010 2011
Suzuki
Motors 2.35 3.546
Honda
Motors 0.015109 0.012571

Analysis: Gross profit of Suzuki as far as past record is concern has shown higher degree from
Honda

Net profit Margin
2010 2011
Suzuki
Motors 0.495 1.5069
Honda
Motors 0.053753 0.018825

Analysis: While comparing the Honda and Suzuki the trend shows that Net profit margin of
fluctuates with time

Return on Total Assets
2010 2011
Suzuki
Motors 0.0109 0.03409
Honda
Motors 0.156814 0.060787

Analysis: Return to capital of the Honda has always been higher then Suzuki so the Assets has
shown to be greater of value

Return on Equity
2010 2011
Suzuki Motors
Honda Motors 0.4261 0.149226

Analysis:


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AR Turnover Ratio
2010 2011
Suzuki
Motors 63.399 55.35
Honda
Motors 16.19844 17.68049

Analysis: shows that account receivable of Suzuki has improved as compared to Honda

Average Collection Period
2010 2011
Suzuki
Motors 5.76 6.59
Honda
Motors 22.53303 20.64422

Analysis: this ratio shows that average collection period decrease for Honda but increase for
Suzuki

Inventory Turnover
2010 2011
Suzuki
Motors 0.4759 3.934
Honda
Motors 132.6023 205.8375

Analysis: Honda has shown a greater inventory turnover ratio while Honda is far less then
Suzuki.

Avg Age of Inventory
2010 2011
Suzuki
Motors 766.96 92.78
Honda
Motors 2.752592 1.773243

Analysis: The Suzuki shows decreasing trend from past however it is greater than Honda

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Operating Cycle
2010 2011
Suzuki Motors 772.72 99.37
Honda Motors 25.285622 22.417463

Analysis: This ratio shows that it is favorable for both companies

Total Assets Turnover
Comparison 2010 2011
Suzuki
Motors 2.2151 2.2624
Honda
Motors 2.917334 4.486146


Analysis: Total asset turnover of Honda has increased so as of Suzukis but Honda has always
been greater so the value of Assets of Honda is greater.


















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CONCLUSION

We have studied the financial statements of both HONDA and SUZUKI MOTORS and after
analyzing the financial statements of both companies we conclude that the condition of Suzuki
motors is more better then Honda because Suzuki motors is more profit conditions as compare to
Honda because the financial situations of Honda is not better then Suzuki if the debtors of Suzuki
demands their debts from company then the Suzuki is in this situation that it can easily pay to
their debtors by selling their assets but on the other hand Honda is not in such position because
their liabilities are more than their assets. The financial statement of Suzuki shows that their
values of assets are more than their liabilities and their profit and comprehensive income for year
2011 is greater than 2010, so by studying and analyzing financial statement of Suzuki motors we
conclude that their financial position in market is better than Honda.


RECOMMENDATION

We have observed that Honda motors have to more focus on their weakness and by using their
strengths they should gain more opportunities to face their threats. They should raise capital for
further investment to be good competitor for Suzuki motors as well as other companies.

REFERENCES
www.suzukimotors.pk.com
www.hondamotors.pk.com
www.wikipedia.com
www.google.com