Honeywell International Inc (HON)
Receivables 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 |
| Receivables | US$ in thousands | 7,530,000 | 7,440,000 | 6,830,000 | 6,827,000 | 7,493,000 |
| Receivables turnover | 4.87 | 4.76 | 5.03 | 4.79 | 4.93 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $36,634,000K ÷ $7,530,000K
= 4.87
Honeywell International Inc's receivables turnover has experienced some fluctuations over the past five years. The trend indicates that the company's ability to efficiently collect outstanding receivables improved in 2021 with a turnover ratio of 5.04, and slightly declined in 2023 to 4.87.
A higher turnover ratio signifies that the company is collecting its accounts receivable more quickly, which is typically seen as a positive indicator of efficient management of receivables. However, it is essential to assess whether the current turnover ratio is in line with industry standards and the company's historical performance.
Overall, Honeywell's receivables turnover remains relatively stable over the years, indicating consistent management of accounts receivable and effective credit policies. Further analysis and comparison with industry peers would provide a more comprehensive understanding of the company's receivables management.
Peer comparison
Dec 31, 2023