Honeywell International Inc (HON)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	10,567,000	7,925,000	9,627,000	10,959,000	14,275,000
Short-term investments	US$ in thousands	386,000	170,000	483,000	564,000	945,000
Total current liabilities	US$ in thousands	152,000	18,539,000	19,938,000	19,508,000	19,197,000
Cash ratio		72.06	0.44	0.51	0.59	0.79

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($10,567,000K + $386,000K) ÷ $152,000K
= 72.06

The cash ratio of Honeywell International Inc has fluctuated over the past five years, showing a general downward trend. In December 2020, the cash ratio was 0.79, indicating that the company had $0.79 in cash and cash equivalents for every dollar of current liabilities. By December 2024, the cash ratio had significantly increased to 72.06, an outlier that may be due to a specific event or financial anomaly.

The decreasing trend in the cash ratio from 2020 to 2024 suggests that Honeywell International Inc may have been less liquid over time, potentially facing challenges in meeting its short-term obligations solely from its cash reserves. A declining cash ratio could indicate that the company has been investing more in assets other than cash or that its liabilities have been growing faster than its cash holdings.

It is important for investors and analysts to closely monitor the cash ratio of Honeywell International Inc to assess its liquidity position and ability to cover its short-term obligations. The significant spike in the cash ratio in December 2024 should be further investigated to understand the underlying reasons behind this anomaly.