Honeywell International Inc (HON)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,705,000 | 5,658,000 | 4,966,000 | 5,542,000 | 4,779,000 |
| Total stockholders’ equity | US$ in thousands | 957,000 | 15,856,000 | 17,319,000 | 19,242,000 | 17,790,000 |
| ROE | 596.13% | 35.68% | 28.67% | 28.80% | 26.86% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $5,705,000K ÷ $957,000K
= 596.13%
Honeywell International Inc's return on equity (ROE) has shown a positive trend over the past five years. Starting at 26.86% as of December 31, 2020, the ROE increased steadily to 28.80% by the end of 2021. This upward trajectory continued as the ROE reached 28.67% by the end of 2022 and significantly improved to 35.68% by December 31, 2023.
However, there was a remarkable spike in ROE to 596.13% by December 31, 2024. Such a sharp increase is unusual and may be attributed to specific accounting adjustments, extraordinary gains, or other exceptional factors.
Overall, Honeywell International Inc's ROE performance demonstrates a generally positive trend, indicating the company's ability to generate higher profits relative to shareholders' equity over the years. It is essential to further analyze the reasons behind the significant increase in ROE in 2024 to assess the sustainability and underlying factors driving this exceptional performance.
Peer comparison
Dec 31, 2024