Honeywell International Inc (HON)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 36,634,000 | 36,351,000 | 36,078,000 | 35,881,000 | 35,397,000 | 34,878,000 | 34,408,000 | 34,272,000 | 34,343,000 | 34,613,000 | 34,078,000 | 32,980,000 | 33,290,000 | 33,886,000 | 35,255,000 | 36,940,000 | 37,029,000 | 37,262,000 | 38,766,000 | 51,577,000 |
| Total current assets | US$ in thousands | 23,502,000 | 23,320,000 | 24,183,000 | 22,510,000 | 24,982,000 | 22,525,000 | 23,847,000 | 24,281,000 | 25,372,000 | 26,033,000 | 25,652,000 | 25,587,000 | 28,175,000 | 28,200,000 | 28,321,000 | 22,613,000 | 24,303,000 | 26,188,000 | 23,768,000 | 24,334,000 |
| Total current liabilities | US$ in thousands | 18,539,000 | 17,227,000 | 17,174,000 | 17,896,000 | 19,938,000 | 18,109,000 | 19,947,000 | 20,027,000 | 19,508,000 | 20,207,000 | 18,143,000 | 17,950,000 | 19,197,000 | 17,184,000 | 17,341,000 | 17,377,000 | 18,098,000 | 19,915,000 | 19,894,000 | 19,593,000 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $36,634,000K ÷ ($23,502,000K – $18,539,000K)
= 7.38
To analyze Honeywell International Inc's working capital turnover, we can observe a trend over the past eight quarters. The working capital turnover ratio indicates how efficiently a company generates revenue relative to its working capital.
Honeywell's working capital turnover has fluctuated over the quarters, ranging from a low of 5.16 in Q2 2023 to a high of 8.84 in Q2 2022. A higher ratio generally suggests that the company is efficiently using its working capital to generate sales. Conversely, a lower ratio may indicate inefficiencies in managing working capital.
In Q4 2023, the working capital turnover was 7.39, showing an improvement from the previous quarter but lower than the peak levels seen in Q2 2022. This indicates that the company's ability to generate revenue from its working capital improved in the most recent quarter.
Overall, Honeywell has seen fluctuations in its working capital turnover ratio, suggesting varying levels of efficiency in managing working capital to drive sales. Analyzing trends in this ratio can provide insights into the company's operational efficiency and financial performance over time.
Peer comparison
Dec 31, 2023
See also:
Honeywell International Inc Working Capital Turnover (Quarterly Data)