Honeywell International Inc (HON)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 5,658,000 | 5,414,000 | 5,452,000 | 5,226,000 | 4,966,000 | 5,375,000 | 5,080,000 | 5,249,000 | 5,542,000 | 5,473,000 | 4,974,000 | 4,625,000 | 4,779,000 | 4,982,000 | 5,848,000 | 6,308,000 | 6,143,000 | 6,302,000 | 7,016,000 | 6,742,000 |
| Total stockholders’ equity | US$ in thousands | 15,856,000 | 17,231,000 | 17,299,000 | 16,919,000 | 16,697,000 | 17,707,000 | 17,541,000 | 18,365,000 | 18,569,000 | 17,842,000 | 17,938,000 | 17,986,000 | 17,549,000 | 18,074,000 | 18,147,000 | 17,644,000 | 18,494,000 | 18,109,000 | 17,870,000 | 18,767,000 |
| ROE | 35.68% | 31.42% | 31.52% | 30.89% | 29.74% | 30.36% | 28.96% | 28.58% | 29.85% | 30.67% | 27.73% | 25.71% | 27.23% | 27.56% | 32.23% | 35.75% | 33.22% | 34.80% | 39.26% | 35.92% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $5,658,000K ÷ $15,856,000K
= 35.68%
Analyzing the return on equity (ROE) of Honeywell International Inc over the past eight quarters provides valuable insights into the company's profitability and efficiency in generating returns for its shareholders. The ROE has shown a consistent upward trend, increasing from 28.58% in Q1 2022 to 35.68% in Q4 2023, indicating an improvement in the company's ability to generate profits from shareholders' investments.
The steady increase in ROE reflects positively on Honeywell's management of its capital structure and operational efficiency during this period. It suggests that the company has been effectively utilizing its shareholders' equity to generate earnings, which is essential for sustainable growth and value creation in the long run.
Moreover, the ROE figures consistently exceeding 25% demonstrate Honeywell's ability to outperform its cost of capital, indicating that the company is generating adequate returns to reward its investors for the risks undertaken. This high ROE also signals strong financial health and performance relative to its peers in the industry.
Overall, the improving trend in Honeywell International Inc's ROE signals effective management strategies and operational performance, contributing positively to the company's overall financial strength and shareholder value.
Peer comparison
Dec 31, 2023
See also:
Honeywell International Inc Return on Equity (ROE) (Quarterly Data)