Honeywell International Inc (HON)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	38,495,000	37,840,000	37,324,000	36,895,000	36,655,000	36,408,000	36,147,000	35,954,000	35,466,000	34,937,000	34,459,000	34,314,000	34,392,000	34,635,000	33,959,000	32,628,000	32,637,000	33,233,000	34,522,000	36,288,000
Total current assets	US$ in thousands	27,908,000	28,164,000	25,369,000	27,434,000	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
Total current liabilities	US$ in thousands	21,256,000	19,534,000	21,044,000	16,488,000	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
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $38,495,000K ÷ ($27,908,000K – $21,256,000K)
= 5.79

Honeywell International Inc's working capital turnover has shown fluctuations over the past few years. The ratio started at a relatively high level of 6.93 in March 2020, indicating that the company was efficient in managing its working capital to generate sales. However, there was a significant drop to 3.14 in June 2020, suggesting a potential inefficiency in utilizing its working capital during that period.

Throughout the following quarters in 2020 and 2021, the working capital turnover ratio remained relatively stable around the 3 to 4 range, indicating a consistent but not exceptional performance in converting working capital into sales. Notably, there was a slight improvement towards the end of 2021 and into early 2022, with the ratio reaching above 7, showing increased efficiency in utilizing working capital.

However, the ratio dipped again in mid-2023 and started fluctuating between 5 to 8 throughout 2023 and 2024. These fluctuations may indicate varying levels of efficiency in managing working capital to support sales activities during these periods.

Overall, Honeywell International Inc's working capital turnover has displayed variability, suggesting some challenges in consistently optimizing the conversion of working capital into revenue. This trend highlights the importance for the company to closely monitor and manage its working capital efficiency to support its business operations effectively.