Honeywell International Inc (HON)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.09% | 37.28% | 32.82% | 31.98% | 32.07% |
| Operating profit margin | 18.74% | 19.32% | 19.15% | 22.03% | 19.52% |
| Pretax margin | 18.74% | 19.53% | 17.99% | 21.04% | 18.42% |
| Net profit margin | 14.82% | 15.43% | 14.00% | 16.11% | 14.64% |
Honeywell International Inc has shown relatively consistent gross profit margins over the past five years, ranging from 31.98% to 38.09%. The company's gross profit margin increased steadily from 2021 to 2024, reaching a peak of 38.09% by the end of 2024. This indicates that Honeywell has been effectively managing its cost of goods sold.
In terms of operating profit margin, Honeywell experienced fluctuations during the period, with margins ranging from 18.74% to 22.03%. Although there was some variability, the operating profit margin remained relatively stable over the years, indicating the company's ability to efficiently control its operating expenses.
The pretax margin of Honeywell also fluctuated over the five-year period, with the highest margin recorded in 2021 at 21.04%. Despite some fluctuations, the pretax margin remained within a relatively narrow range, reflecting the company's ability to generate earnings before accounting for taxes.
Honeywell's net profit margin ranged from 14.00% to 16.11% during the period, showing a slight decrease in profitability from 2021 to 2022, followed by a modest recovery in 2023 and 2024. The company has been able to maintain a healthy level of profitability, though there has been some variability over the years.
Overall, Honeywell International Inc has demonstrated stable profitability ratios, with consistent gross profit margins and relatively steady operating, pretax, and net profit margins over the five-year period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 528.42% | 11.51% | 10.91% | 11.75% | 9.86% |
| Return on assets (ROA) | 417.95% | 9.20% | 7.97% | 8.60% | 7.40% |
| Return on total capital | 864.26% | 44.68% | 39.22% | 39.38% | 35.81% |
| Return on equity (ROE) | 596.13% | 35.68% | 28.67% | 28.80% | 26.86% |
Honeywell International Inc's profitability ratios exhibit a generally positive trend over the period from December 31, 2020, to December 31, 2024, with some significant fluctuations in certain ratios.
- Operating Return on Assets (Operating ROA): This ratio increased from 9.86% in 2020 to 11.75% in 2021, dipped slightly to 10.91% in 2022, and then improved to 11.51% in 2023, before experiencing a significant surge to 528.42% in 2024. This sudden spike in 2024 may indicate an anomaly or a one-time event affecting the operating profitability relative to the assets.
- Return on Assets (ROA): Similarly, ROA showed an upward trajectory from 7.40% in 2020 to 8.60% in 2021, a slight decline to 7.97% in 2022, followed by a notable increase to 9.20% in 2023. However, in 2024, there was a substantial surge to 417.95%, suggesting a possible extraordinary event impacting the return on total assets during that period.
- Return on Total Capital: The return on total capital surged significantly from 35.81% in 2020 to 39.38% in 2021, remained relatively stable at 39.22% in 2022, witnessed a notable increase to 44.68% in 2023, and then experienced a remarkable spike to 864.26% in 2024. This sharp increase in 2024 indicates a potentially exceptional performance or a unique circumstance affecting the return on the overall capital employed by the company.
- Return on Equity (ROE): ROE demonstrated a positive trend from 26.86% in 2020 to 28.80% in 2021, followed by a slight decrease to 28.67% in 2022 and a notable rise to 35.68% in 2023. However, in 2024, there was a substantial jump to 596.13%, indicating a considerable increase in the return generated for the equity shareholders, possibly influenced by specific events or factors impacting the equity portion of the company.
Overall, while the profitability ratios of Honeywell International Inc generally improved over the years under consideration, the significant spikes observed in 2024 across various ratios may require further investigation to understand the underlying reasons behind these exceptional figures.