Honeywell International Inc (HON)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 7,925,000 | 7,770,000 | 8,626,000 | 6,869,000 | 9,627,000 | 7,449,000 | 8,248,000 | 9,281,000 | 10,959,000 | 11,087,000 | 11,427,000 | 11,718,000 | 14,275,000 | 14,036,000 | 13,778,000 | 7,721,000 | 9,067,000 | 10,908,000 | 8,225,000 | 8,625,000 |
| Short-term investments | US$ in thousands | 170,000 | 164,000 | 143,000 | 371,000 | 483,000 | 516,000 | 411,000 | 493,000 | 564,000 | 1,049,000 | 891,000 | 942,000 | 945,000 | 972,000 | 1,349,000 | 1,070,000 | 1,349,000 | 1,456,000 | 1,718,000 | 2,059,000 |
| 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 |
| Cash ratio | 0.44 | 0.46 | 0.51 | 0.40 | 0.51 | 0.44 | 0.43 | 0.49 | 0.59 | 0.60 | 0.68 | 0.71 | 0.79 | 0.87 | 0.87 | 0.51 | 0.58 | 0.62 | 0.50 | 0.55 |
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 measures a company's ability to cover its short-term liabilities using only its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet these obligations without relying on external sources of financing.
Analyzing the cash ratio of Honeywell International Inc over the past eight quarters, we observe fluctuations in the ratio ranging from 0.50 to 0.60. This suggests that the company has maintained a relatively stable liquidity position during this period.
In Q2 and Q4 of 2023, the cash ratio was at its highest at 0.60, indicating that the company had a higher proportion of cash and cash equivalents relative to its current liabilities. This may signify a prudent approach in managing liquidity and meeting short-term obligations without relying extensively on other sources of funding.
On the other hand, in Q1 and Q3 of 2023, the cash ratio declined slightly to 0.50-0.55 range. While these ratios are still considered adequate, the downward trend may warrant further monitoring to ensure the company's liquidity remains robust.
Overall, Honeywell International Inc's cash ratio demonstrates a consistent focus on maintaining a healthy liquidity position, which is essential for weathering unforeseen financial challenges and sustaining business operations effectively.
Peer comparison
Dec 31, 2023