Honeywell International Inc (HON)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 7,925,000 | 9,627,000 | 10,959,000 | 14,275,000 | 9,067,000 |
| Short-term investments | US$ in thousands | 170,000 | 483,000 | 564,000 | 945,000 | 1,349,000 |
| Total current liabilities | US$ in thousands | 18,539,000 | 19,938,000 | 19,508,000 | 19,197,000 | 18,098,000 |
| Cash ratio | 0.44 | 0.51 | 0.59 | 0.79 | 0.58 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,925,000K
+ $170,000K)
÷ $18,539,000K
= 0.44
The cash ratio of Honeywell International Inc has shown a decreasing trend over the past five years. In 2023, the cash ratio was 0.53, compared to 0.60 in 2022, 0.69 in 2021, 0.88 in 2020, and 0.68 in 2019.
The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations using liquid assets.
The decreasing trend in Honeywell's cash ratio may suggest a potential decrease in the company's ability to cover its short-term liabilities with cash alone. It could indicate a reduction in liquidity or an increase in short-term obligations relative to available cash.
Further analysis would be necessary to understand the reasons behind this trend and to assess the overall financial health of Honeywell International Inc.
Peer comparison
Dec 31, 2023