Honeywell International Inc (HON)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 38.28% | 39.02% | 39.00% | 38.86% | 38.54% | 37.05% | 35.74% | 34.22% | 32.82% | 32.34% | 32.09% | 31.93% | 31.98% | 32.34% | 32.06% | 31.52% | 32.07% | 32.23% | 32.87% | 33.88% |
| Operating profit margin | 20.59% | 21.61% | 21.31% | 20.15% | 20.34% | 18.40% | 18.93% | 19.35% | 18.59% | 20.38% | 19.22% | 19.29% | 19.02% | 18.36% | 17.95% | 16.90% | 17.45% | 17.20% | 17.83% | 19.01% |
| Pretax margin | 18.74% | 18.96% | 19.61% | 19.64% | 19.53% | 18.79% | 18.97% | 18.51% | 17.99% | 19.99% | 19.45% | 20.05% | 21.04% | 20.65% | 19.44% | 18.20% | 18.42% | 18.26% | 19.96% | 21.09% |
| Net profit margin | 14.82% | 15.02% | 15.50% | 15.52% | 15.44% | 14.87% | 15.08% | 14.54% | 14.00% | 15.38% | 14.74% | 15.30% | 16.11% | 15.80% | 14.65% | 14.17% | 14.64% | 14.99% | 16.94% | 17.38% |
Honeywell International Inc's profitability has shown a generally positive trend over the past few years based on the analysis of key profitability ratios.
1. Gross Profit Margin: The company's gross profit margin has been steadily increasing from 31.52% as of March 31, 2021, to 38.28% as of December 31, 2024. This improvement indicates that Honeywell is effectively managing its production costs and pricing strategies to generate higher profits from its sales.
2. Operating Profit Margin: Similarly, the operating profit margin has shown fluctuations but an overall positive trend, reaching 21.31% as of June 30, 2024, from 16.90% as of March 31, 2021. This suggests that the company has been efficient in controlling its operating expenses and optimizing its business operations.
3. Pretax Margin: The pretax margin reflects the company's ability to generate profits before accounting for taxes. Although there have been some fluctuations, the trend has been relatively stable, with the margin ranging from 17.99% as of December 31, 2022, to 21.04% as of December 31, 2021.
4. Net Profit Margin: The net profit margin represents the company's bottom line profitability after all expenses have been deducted. The trend for Honeywell's net profit margin has also been positive, with a slight increase from 14.17% as of March 31, 2021, to 15.02% as of September 30, 2024.
Overall, the consistent improvement in gross profit margin, operating profit margin, pretax margin, and net profit margin indicates that Honeywell International Inc has been effectively managing its costs, operations, and revenue generation, resulting in improved overall profitability.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.54% | 11.13% | 11.47% | 11.32% | 12.12% | 10.93% | 10.98% | 11.62% | 10.59% | 11.81% | 10.64% | 10.45% | 10.15% | 9.90% | 9.53% | 8.68% | 8.82% | 9.01% | 9.68% | 12.02% |
| Return on assets (ROA) | 7.59% | 7.73% | 8.34% | 8.72% | 9.20% | 8.83% | 8.75% | 8.73% | 7.97% | 8.92% | 8.16% | 8.29% | 8.60% | 8.53% | 7.78% | 7.28% | 7.40% | 7.85% | 9.19% | 10.99% |
| Return on total capital | 29.60% | 46.82% | 48.40% | 50.54% | 52.58% | 42.64% | 43.23% | 40.31% | 38.67% | 40.87% | 40.56% | 40.15% | 40.21% | 42.98% | 38.29% | 34.58% | 35.73% | 35.00% | 39.57% | 44.76% |
| Return on equity (ROE) | 21.39% | 32.65% | 34.13% | 34.81% | 35.68% | 30.46% | 31.52% | 29.84% | 28.67% | 30.36% | 28.96% | 28.58% | 28.80% | 30.67% | 27.33% | 25.34% | 26.86% | 27.20% | 32.23% | 35.75% |
Honeywell International Inc's profitability ratios show a positive trend over the period from March 31, 2020, to December 31, 2024.
1. Operating Return on Assets (Operating ROA) increased from 12.02% on March 31, 2020, to 10.54% on December 31, 2024, with some fluctuations along the way. This indicates that the company generated an increasing operating profit relative to its total assets.
2. Return on Assets (ROA) also exhibited a general upward trend, starting at 10.99% on March 31, 2020, and reaching 7.59% on December 31, 2024. Although there were fluctuations, the overall trend shows that the company was able to generate a reasonable return on its total assets.
3. Return on Total Capital peaked at 52.58% on December 31, 2023, showing the company's ability to generate a high return compared to its total capital. However, there was a significant drop to 29.60% by December 31, 2024, indicating some challenges in maintaining the same level of performance.
4. Return on Equity (ROE) also demonstrated a general upward trend, starting at 35.75% on March 31, 2020, and ending at 21.39% on December 31, 2024. The ROE indicates the return generated for the shareholders, and the decreasing trend suggests a declining profitability in relation to shareholders' equity over the period.
Overall, while there were fluctuations in the profitability ratios, the trend in the operating and total capital returns remained positive, showcasing Honeywell International Inc's ability to generate profits from its operations and capital investments. However, the declining trend in ROE may suggest some challenges in maximizing returns for the shareholders.
See also:
Honeywell International Inc Profitability Ratios (Quarterly Data)