Honda Motor Co., Ltd.
HMC Consumer Cyclical Auto Manufacturers
Honda Motor Co., Ltd.’s revenue for fiscal 2026 (year ended March 2026) was $143.9 billion, roughly unchanged from fiscal 2025. In the quarter to June 2026, revenue grew 4.19%, EPS grew 105.7%, free cash flow grew 20.1% and total debt rose 16.2%, each against the same quarter a year earlier. Revenue growth for three consecutive years.
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Honda Motor Co., Ltd. (HMC) Altman Z-score
Honda Motor Co., Ltd.'s Altman Z-score for fiscal 2026 is 1.24, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | 1.24 | (0.43) |
| FY2025 | 1.67 | (0.13) |
| FY2024 | 1.80 | 0.02 |
| FY2023 | 1.78 | 0.10 |
| FY2022 | 1.67 | 0.04 |
| FY2021 | 1.64 | (0.05) |
| FY2020 | 1.69 | (0.10) |
| FY2019 | 1.79 | (0.15) |
| FY2018 | 1.94 | 0.18 |
| FY2017 | 1.76 | 0.02 |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.09 | — | 0.10 | |
| Retained earnings / total assets | 0.28 | — | 0.39 | |
| EBIT / total assets | (0.01) | — | −0.04 | |
| Market value of equity / total liabilities | 0.23 | — | 0.14 | |
| Sales / total assets | 0.65 | — | 0.65 | |
| Altman Z-score | Distress zone | 1.24 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 1.99 | ||
Z and Z″ put Honda Motor Co., Ltd. in different zones: distress zone by Z, grey zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| RACE Ferrari N.V. compare | 8.6× |
| LI Li Auto Inc. Sponsored ADR compare | 2.1× |
| TM Toyota Motor Corporation compare | 1.6× |
| HMC Honda Motor Co., Ltd. | 1.2× |
| GM General Motors Company compare | 1.2× |
| STLA Stellantis N.V. compare | 0.9× |
| F Ford Motor Company compare | 0.8× |
| NIO NIO Inc. compare | −0.7× |
| RIVN Rivian Automotive, Inc. compare | −1.2× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets