Is HONDA MOTOR CO LTD (HMC) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 12372.8% / 30% | 13254.2% / 30% | 10958.2% / 30% | 0.88% / 5% | ✗ NOT HALAL |
| DJIM | 12372.8% / 33% | 13254.2% / 33% | 10958.2% / 33% | 0.88% / 5% | ✗ NOT HALAL |
| MSCI | 14.4% / 33% | 15.4% / 33% | 12.7% / 33% | 0.88% / 5% | ✓ HALAL |
| S&P | 12372.8% / 33% | 13254.2% / 33% | 10958.2% / 33% | 0.88% / 5% | ✗ NOT HALAL |
| FTSE | 14.4% / 33% | 15.4% / 33% | 12.7% / 50% | 0.88% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 20.5% | |
| Operating Margin | 2.9% | |
| Net Margin | 2.3% | |
| Return on Equity (ROE) | 4.3% | |
| Return on Assets (ROA) | 1.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $292.2B |
| Free Cash Flow | -$555.3B |
| Total Debt | $4.4T |
| Debt-to-Equity | 106.0 |
| Current Ratio | 1.4 |
| Total Assets | $30.8T |
Price & Trading
| Last Close | $24.58 |
| 50-Day MA | $28.96 |
| 200-Day MA | $30.64 |
| Avg Volume | 1.3M |
| Beta | 0.1 |
|
52-Week Range
$24.08
| |
About HONDA MOTOR CO LTD (HMC)
Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, and power products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as wholesale financing services to dealers. The Power Product and Other Businesses manufactures and sells power products, such as general-purpose engines, lawn mowers, generators, water pumps, brush cutters, and tillers. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sales services through retail dealers directly, as well as through independent distributors and licensees. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.
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Frequently Asked Questions
Is HONDA MOTOR CO LTD (HMC) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), HONDA MOTOR CO LTD is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is HONDA MOTOR CO LTD's debt ratio?
HONDA MOTOR CO LTD's debt ratio is 12372.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 14.4%.
What are HONDA MOTOR CO LTD's key financial metrics?
HONDA MOTOR CO LTD has a market capitalization of $31.9B, trailing P/E ratio of 10.4, and revenue of $21.7T. The company maintains a gross margin of 20.5% and a net margin of 2.3%. Return on equity stands at 4.3%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.