Honeywell International Inc (HON)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover	3.69	3.64	3.60	3.57	3.65	3.82	3.94	4.09	4.30	4.30	4.20	4.27	4.55	4.72	4.88	4.85	4.94	4.79	4.88	5.23
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	5.79	4.38	8.63	3.37	7.39	5.98	5.16	7.79	7.03	7.91	8.84	8.07	5.86	5.94	4.52	4.27	3.64	3.02	3.14	6.93

Honeywell International Inc's inventory turnover has generally decreased over the years, indicating that the company is holding onto its inventory for a longer period before selling it. This could suggest potential inefficiencies in managing inventory levels or changes in demand patterns.

The absence of data for receivables turnover and payables turnover makes it difficult to assess the efficiency of the company in collecting receivables and paying its obligations, respectively. However, the lack of information may indicate that the company does not disclose or emphasize these ratios in its financial reporting.

Looking at the working capital turnover, we see fluctuations in the efficiency of the company in utilizing its working capital to generate sales. The ratios vary significantly from period to period, indicating changes in the company's efficiency in managing its working capital.

Overall, analyzing these activity ratios provides insights into Honeywell International Inc's operational efficiency and effectiveness in utilizing its resources to drive sales and support its business operations. The trends observed can be further investigated to understand the underlying factors impacting the company's performance in managing its inventory, working capital, and trade receivables and payables.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Days of inventory on hand (DOH)	days	98.96	100.25	101.39	102.23	100.10	95.56	92.55	89.15	84.84	84.95	86.97	85.50	80.16	77.36	74.72	75.26	73.91	76.25	74.86	69.73
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

The Days of Inventory on Hand (DOH) of Honeywell International Inc has been gradually increasing over the period from March 31, 2020, to December 31, 2024, indicating that the company is holding onto its inventory for a longer time before selling it. This could suggest potential inefficiencies in inventory management or slower inventory turnover.

The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available, which limits the comprehensive analysis of Honeywell's activity ratios. A complete analysis of activity ratios usually involves the interplay between inventory, accounts receivable, and accounts payable turnover to assess how efficiently a company is managing its working capital.

To gain a better understanding of Honeywell's overall operational efficiency and liquidity management, it would be helpful to have the DSO and payables data to calculate metrics like the Cash Conversion Cycle (CCC) and the Cash Conversion Efficiency Ratio (CCER). These ratios would provide insights into how effectively the company is converting its investments in inventory and accounts receivable into cash.

In conclusion, while the data on DOH shows a trend of increasing inventory holding period, the lack of DSO and payables information limits a comprehensive analysis of Honeywell International Inc's activity ratios, highlighting the importance of considering multiple activity ratios for a holistic assessment of a company's operational performance.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Fixed asset turnover	—	—	—	—	—	—	6.59	6.57	6.48	6.54	6.45	6.27	6.18	5.37	5.27	5.88	5.86	6.13	6.48	6.96
Total asset turnover	0.51	0.51	0.54	0.56	0.60	0.59	0.58	0.60	0.57	0.58	0.55	0.54	0.53	0.54	0.53	0.51	0.51	0.52	0.54	0.63

The fixed asset turnover ratio of Honeywell International Inc has shown a generally decreasing trend over the past few years, indicating that the company is generating slightly less revenue per dollar of fixed assets invested. However, the ratio has been relatively stable since reaching a low point in December 2021, hovering between 6.18 and 6.59 in recent periods.

In contrast, the total asset turnover has fluctuated within a narrower range, showing a slight increase from 0.51 in December 2020 to 0.60 in March 2023. This suggests that the company has become more efficient in generating sales relative to its total assets. The ratio dipped slightly by June 2024 but remained relatively consistent around the 0.54 to 0.60 range.

Overall, while the fixed asset turnover ratio may raise some concerns, the upward trend in total asset turnover indicates an improvement in the company's overall asset utilization efficiency.