Honeywell International Inc (HON)

Liquidity ratios

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
Current ratio 1.27 1.35 1.41 1.26 1.25 1.24 1.20 1.21 1.30 1.29 1.41 1.43 1.47 1.64 1.63 1.30 1.34 1.31 1.19 1.24
Quick ratio 0.84 0.92 0.98 0.84 0.88 0.85 0.82 0.84 0.94 0.96 1.06 1.08 1.15 1.27 1.26 0.93 0.99 1.00 0.87 0.92
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

Honeywell International Inc's liquidity ratios, as reflected in their current ratio, quick ratio, and cash ratio over the past eight quarters, indicate the company's ability to meet its short-term obligations.

The current ratio has remained relatively stable over the observed period, fluctuating between 1.26 and 1.41. This suggests that the company has, on average, slightly more current assets than current liabilities. A current ratio above 1 indicates a strong ability to cover short-term obligations.

The quick ratio, which excludes inventory from current assets, has also shown stability, fluctuating between 0.94 and 1.07. This ratio provides a more conservative measure of liquidity as it excludes potentially less liquid assets. A quick ratio above 1 is generally considered healthy and indicates a company's ability to meet short-term obligations without relying on inventory.

The cash ratio, which is the most conservative liquidity measure, has varied between 0.50 and 0.60. This ratio indicates the proportion of a company's current liabilities that could be covered by cash and cash equivalents alone. A higher cash ratio implies a stronger ability to cover short-term obligations with liquid assets.

Overall, Honeywell International Inc's liquidity ratios suggest a consistent ability to meet short-term obligations, with the current and quick ratios being above 1 in most quarters, indicating a healthy liquidity position. The cash ratio, though fluctuating, also generally remains at reasonable levels, providing additional confidence in the company's short-term financial health.

See also:

Honeywell International Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 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

The cash conversion cycle of Honeywell International Inc has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 64.32 days, indicating that it took approximately 64 days for the company to convert its investment in inventory and other resources into cash from sales. This was an improvement compared to the previous quarter Q3 2023, where the cash conversion cycle was 71.71 days.

Overall, the trend in the cash conversion cycle seems to be somewhat cyclical, with fluctuations occurring from quarter to quarter. However, the cycle has generally remained within a range of approximately 63 to 72 days over the past two years. This indicates that Honeywell International Inc has been efficient in managing its working capital and converting its assets into cash.

It is important for the company to continue monitoring and managing its cash conversion cycle effectively to ensure optimized working capital management and liquidity. Keeping the cash conversion cycle at an optimal level can help improve the company's financial health and operational efficiency.