Honeywell International Inc (HON)
Quick 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 | 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 |
| Receivables | US$ in thousands | 7,530,000 | 7,833,000 | 7,994,000 | 7,862,000 | 7,440,000 | 7,363,000 | 7,738,000 | 7,119,000 | 6,830,000 | 7,239,000 | 6,947,000 | 6,675,000 | 6,827,000 | 6,878,000 | 6,717,000 | 7,452,000 | 7,493,000 | 7,583,000 | 7,407,000 | 7,307,000 |
| 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 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,925,000K
+ $170,000K
+ $7,530,000K)
÷ $18,539,000K
= 0.84
The quick ratio of Honeywell International Inc over the past eight quarters demonstrates the company's ability to meet its short-term obligations with its most liquid assets. The quick ratio, also known as the acid-test ratio, is calculated by dividing the sum of cash and cash equivalents, marketable securities, and accounts receivable by current liabilities.
The quick ratio fluctuated between 0.92 and 1.07 during the period analyzed. A quick ratio of 1 indicates that the company's liquid assets are equal to its current liabilities, reflecting a strong ability to cover short-term obligations without relying on the sale of inventory.
In Q2 2023, the quick ratio reached its peak at 1.07, showing an improved liquidity position and a higher level of liquid assets relative to current liabilities. This may indicate effective management of working capital and stronger financial health.
Conversely, in Q4 2023, the quick ratio decreased to 0.93, indicating a slight decline in liquidity compared to the previous quarter. Although still above 1, a decrease in the quick ratio may suggest that the company's ability to cover short-term obligations has weakened slightly.
Overall, Honeywell International Inc has maintained a relatively stable quick ratio above 1 in most quarters, indicating a generally healthy liquidity position. Investors and stakeholders should continue to monitor the quick ratio to assess the company's ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023