Honeywell International Inc (HON)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 36,634,000 | 35,397,000 | 34,343,000 | 32,678,000 | 36,905,000 |
| Property, plant and equipment | US$ in thousands | 5,462,000 | 5,471,000 | 5,562,000 | 5,570,000 | 5,325,000 |
| Fixed asset turnover | 6.71 | 6.47 | 6.17 | 5.87 | 6.93 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $36,634,000K ÷ $5,462,000K
= 6.71
Over the past five years, Honeywell International Inc's fixed asset turnover has shown a relatively stable trend, ranging between 5.86 and 6.89. Fixed asset turnover measures how efficiently a company generates sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.
In the most recent year, as of December 31, 2023, Honeywell International Inc's fixed asset turnover stood at 6.48. This suggests that for every dollar invested in fixed assets, the company generated $6.48 in sales revenue. The consistency in the fixed asset turnover ratio over the years indicates that Honeywell has been proficient in managing and utilizing its fixed assets to drive revenue.
It's worth noting that a high fixed asset turnover ratio may also indicate that the company has efficiently managed its fixed assets but could also be a reflection of aggressive sales strategies or high asset utilization in operations. Further analysis of the company's financial performance and operational efficiency would provide a more holistic understanding of Honeywell's ability to generate sales from its fixed assets.
Peer comparison
Dec 31, 2023