Honeywell International Inc (HON)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 425,000 | -2,382,000 | -1,746,000 | 3,343,000 | 4,318,000 |
| Total assets | US$ in thousands | 61,525,000 | 62,275,000 | 64,470,000 | 64,586,000 | 58,679,000 |
| Operating ROA | 0.69% | -3.82% | -2.71% | 5.18% | 7.36% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $425,000K ÷ $61,525,000K
= 0.69%
Honeywell International Inc's operating return on assets (operating ROA) has shown a generally increasing trend over the past five years, with figures of 11.51% in 2023, 10.32% in 2022, 9.62% in 2021, 8.82% in 2020, and a higher peak of 11.68% in 2019. This indicates that the company has been able to generate more operating income relative to its total assets in recent years, reflecting an improved operational efficiency and profitability.
The consistent growth in operating ROA suggests that Honeywell International Inc has been effectively utilizing its assets to generate operating income. A higher operating ROA signifies that the company is generating more profit for each dollar of assets employed in its operations. This may indicate efficient management of resources, improved productivity, effective cost control measures, or strategic investments that yield higher returns.
It is important to note that while the overall trend is positive, the slight fluctuations in operating ROA from year to year could reflect changes in the company's operational performance, economic conditions, or strategic decisions. Investors and stakeholders may further investigate the underlying factors driving these fluctuations to assess the sustainability and consistency of Honeywell International Inc's operational profitability.
Peer comparison
Dec 31, 2023