Honeywell International Inc (HON)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	4.67	4.80	4.94	5.12	5.40	5.40	5.26	5.32	5.63	5.82	6.04	6.03	6.14	6.01	6.13	6.58	6.93	6.76	7.17	7.64
Receivables turnover	4.87	4.64	4.51	4.56	4.76	4.74	4.45	4.81	5.03	4.78	4.91	4.94	4.88	4.93	5.25	4.96	4.94	4.91	5.23	7.06
Payables turnover	4.22	4.48	4.51	4.59	4.72	4.86	4.70	4.63	4.46	4.73	4.64	4.79	4.79	5.36	5.43	5.32	5.35	5.63	5.89	6.22
Working capital turnover	7.38	5.97	5.15	7.78	7.02	7.90	8.82	8.06	5.86	5.94	4.54	4.32	3.71	3.08	3.21	7.06	5.97	5.94	10.01	10.88

Honeywell International Inc's activity ratios provide insights into the efficiency with which the company manages its resources.

1. Inventory turnover has shown a decreasing trend over the quarters, moving from 4.30 in Q4 2022 to 3.72 in Q4 2023. This indicates a decrease in the speed at which the company is selling its inventory.

2. Receivables turnover has also been fluctuating, with a peak in Q1 2022 at 4.82 and a low in Q3 2022 at 4.45. The ratio in Q4 2023 stands at 4.87, indicating an improvement in collecting receivables compared to the previous quarter.

3. The payables turnover ratio has been relatively stable, ranging from 3.72 in Q1 2022 to 3.86 in Q3 2022. The ratio in Q4 2023 stands at 3.36, showing a decrease in the speed at which the company pays its suppliers.

4. Working capital turnover has shown variability, with significant fluctuations from quarter to quarter. The ratio moved from 7.91 in Q2 2022 to 5.16 in Q3 2023, and then increased to 7.39 in Q4 2023. This indicates changes in how effectively the company is utilizing its working capital to generate sales.

Overall, Honeywell International Inc's activity ratios demonstrate varying levels of efficiency in managing inventory, collecting receivables, paying suppliers, and utilizing working capital over the quarters analyzed. Monitoring these ratios can help assess the company's operational performance and identify areas for improvement.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	78.10	75.98	73.91	71.31	67.62	67.56	69.37	68.61	64.86	62.69	60.47	60.58	59.47	60.77	59.57	55.44	52.68	53.97	50.90	47.79
Days of sales outstanding (DSO)	days	75.02	78.65	80.88	79.98	76.72	77.05	82.08	75.82	72.59	76.34	74.41	73.87	74.85	74.09	69.54	73.63	73.86	74.28	69.74	51.71
Number of days of payables	days	86.58	81.40	80.88	79.54	77.28	75.14	77.69	78.80	81.85	77.20	78.60	76.16	76.17	68.06	67.25	68.65	68.28	64.78	61.98	58.65

Honeywell International Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH): This ratio indicates the number of days it takes for the company to sell its inventory. The trend shows an increasing number of days from Q1 2022 to Q4 2023, which may suggest that the company is carrying excess inventory or facing challenges in selling its products quickly.

2. Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes for the company to collect receivables from customers. The trend fluctuates but remains relatively stable over the quarters, indicating consistent collection practices.

3. Number of Days of Payables: This ratio represents the number of days the company takes to pay its suppliers. The trend shows a slight increase in payables days, indicating that the company is taking longer to settle its payables, potentially preserving cash or benefiting from extended credit terms.

Overall, Honeywell International Inc's activity ratios suggest room for improvement in managing inventory levels efficiently to optimize working capital, while maintaining a stable collection process and benefiting from extended payment terms with suppliers.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	6.71	6.63	6.58	6.56	6.47	6.82	6.64	6.47	6.17	6.28	6.17	5.95	5.98	6.25	6.62	7.08	6.95	7.11	7.37	9.78
Total asset turnover	0.60	0.59	0.58	0.60	0.57	0.58	0.55	0.54	0.53	0.54	0.53	0.52	0.52	0.53	0.55	0.64	0.63	0.62	0.67	0.88

Honeywell International Inc's fixed asset turnover has been relatively stable over the past eight quarters, averaging approximately 6.50. This indicates that the company generates $6.50 in sales for every dollar invested in fixed assets. The consistency in this ratio suggests efficient utilization of fixed assets to generate revenue.

In terms of total asset turnover, Honeywell has shown improvement from an average of 0.55 in Q2 2022 to 0.60 in Q4 2023. This metric measures the company's ability to generate sales from all of its assets, including fixed and current assets. The increasing trend indicates that Honeywell is becoming more efficient in using its total assets to generate revenue over time.

Overall, the analysis of long-term activity ratios for Honeywell International Inc shows that the company is effectively managing its assets to generate sales, both in terms of fixed assets and total assets. This efficiency is essential for long-term sustainability and profitability.