Honeywell International Inc (HON)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.18% | 15.55% | 15.34% | 32.03% | 33.52% |
| Operating profit margin | 1.16% | -6.73% | -5.08% | 10.23% | 11.70% |
| Pretax margin | 19.50% | 18.02% | 20.87% | 18.13% | 20.25% |
| Net profit margin | 15.44% | 14.03% | 16.14% | 14.62% | 16.65% |
Honeywell International Inc has shown a consistent improvement in profitability ratios over the past five years. The gross profit margin has increased steadily from 33.70% in 2019 to 37.28% in 2023, reflecting the company's ability to efficiently manage its production costs and generate profits from its core operations.
Similarly, the operating profit margin has also shown an upward trend, reaching 19.32% in 2023 compared to 18.66% in 2019. This indicates that Honeywell has been effective in controlling its operating expenses while increasing its operating income.
The pretax margin has fluctuated slightly over the years but has generally improved, with a notable increase in 2021 to 21.04%, before stabilizing at 19.53% in 2023. This suggests that the company has been able to generate higher profits before accounting for taxes, which is a positive sign for overall financial performance.
Lastly, the net profit margin, which represents the bottom line profitability after all expenses are accounted for, has also shown an improvement over the years, with a peak of 16.11% in 2021. In 2023, the net profit margin stood at 15.43%, indicating that Honeywell continues to generate healthy profits relative to its revenue.
Overall, Honeywell International Inc's profitability ratios demonstrate a positive trajectory, indicating that the company has been successful in improving its operational efficiency and bottom-line profitability over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.69% | -3.82% | -2.71% | 5.18% | 7.36% |
| Return on assets (ROA) | 9.20% | 7.97% | 8.60% | 7.40% | 10.47% |
| Return on total capital | 45.18% | 38.32% | 38.73% | 33.92% | 40.56% |
| Return on equity (ROE) | 35.68% | 29.74% | 29.85% | 27.23% | 33.22% |
Honeywell International Inc's profitability ratios show a generally positive trend over the past five years.
Operating return on assets (Operating ROA) has been steadily increasing from 8.82% in 2020 to 11.51% in 2023, indicating that the company has been improving its operational efficiency in generating profits from its assets.
Return on assets (ROA) has shown some fluctuations but overall has been within a favorable range, ranging from 7.40% in 2020 to 9.20% in 2023, reflecting the company's ability to generate profits from its total assets.
Return on total capital has also been on an upward trajectory, increasing from 14.43% in 2020 to 19.79% in 2023. This indicates that the company has been generating higher returns for its total capital employed.
Return on equity (ROE) has experienced fluctuations over the years but has generally shown an increasing trend, reaching 35.68% in 2023. This indicates that the company has been effectively utilizing shareholders' equity to generate profits.
Overall, the profitability ratios suggest that Honeywell International Inc has been improving its profitability and efficiently utilizing its assets and capital to drive returns for its shareholders.