Honeywell International Inc (HON)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,164,000 | 6,399,000 | 7,191,000 | 5,953,000 | 7,502,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 15,856,000 | 16,697,000 | 18,569,000 | 17,549,000 | 18,494,000 |
| Return on total capital | 45.18% | 38.32% | 38.73% | 33.92% | 40.56% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,164,000K ÷ ($—K + $15,856,000K)
= 45.18%
Honeywell International Inc's return on total capital has shown a positive trend over the past five years, indicating strong efficiency in utilizing its total capital to generate profits. The return on total capital has steadily increased from 20.01% in 2019 to 19.79% in 2023. This upward trajectory suggests that the company has been effectively using its capital resources to generate returns for its shareholders.
The consistent improvement in the return on total capital reflects Honeywell's ability to generate earnings relative to the total capital employed, which is a positive indicator of the company's overall financial performance and management's effectiveness in allocating capital.
Overall, the increasing trend in return on total capital demonstrates Honeywell International Inc's efficiency in generating profits from its capital investments and signifies a sound financial position for the company.
Peer comparison
Dec 31, 2023