Honeywell International Inc (HON)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 66.54 | 73.23 | 73.91 | 71.74 | 67.06 | 69.48 | 73.76 | 65.62 | 55.60 | 61.83 | 56.28 | 58.29 | 58.15 | 66.79 | 61.86 | 60.43 | 58.26 | 63.47 | 58.65 | 40.85 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 78.10 + 75.02 – 86.58
= 66.54
The cash conversion cycle of Honeywell International Inc has exhibited some fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle decreased to 64.32 days from 71.71 days in the previous quarter, indicating an improvement in the efficiency of the company in managing its working capital. Comparing this to Q4 2022, where the cycle was 64.45 days, there has been relatively stable performance in this regard.
Overall, there have been fluctuations in the cash conversion cycle over the eight quarters analyzed, with peaks seen in Q2 2023 and Q2 2022 at 72.00 days and 71.53 days, respectively. These may indicate periods where the company faced challenges in managing its cash flow and working capital efficiently.
On the other hand, Q1 2022 and Q4 2023 showed lower values of 63.02 days and 64.32 days, respectively, reflecting improved efficiency in converting its investments in inventory and accounts receivable into cash.
In conclusion, Honeywell International Inc's cash conversion cycle has shown some variability over the past two years, with fluctuations reflecting different levels of efficiency in managing working capital. Further analysis and monitoring of this metric will be key in assessing the company's liquidity and operational efficiency in the future.
Peer comparison
Dec 31, 2023
See also:
Honeywell International Inc Cash Conversion Cycle (Quarterly Data)