Honeywell International Inc (HON)
Working capital 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 |
| Total current assets | US$ in thousands | 23,502,000 | 24,982,000 | 25,372,000 | 28,175,000 | 24,303,000 |
| Total current liabilities | US$ in thousands | 18,539,000 | 19,938,000 | 19,508,000 | 19,197,000 | 18,098,000 |
| Working capital turnover | 7.38 | 7.02 | 5.86 | 3.64 | 5.95 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $36,634,000K ÷ ($23,502,000K – $18,539,000K)
= 7.38
Honeywell International Inc's working capital turnover has shown a consistent upward trend over the past five years, indicating increased efficiency in the management of its working capital. The company's ability to generate revenue from its working capital has improved steadily from 3.64 in 2020 to 7.39 in 2023. This suggests that for each dollar invested in working capital, Honeywell is generating a higher level of sales over the years, reflecting improved operational efficiency and better utilization of its current assets and liabilities. The company's strong working capital turnover ratios demonstrate effective management of liquidity and efficient working capital utilization throughout the period under review.
Peer comparison
Dec 31, 2023