Honeywell International Inc (HON)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 425,000 | -1,886,000 | -2,016,000 | -2,201,000 | -2,382,000 | -1,522,000 | -1,681,000 | -1,755,000 | -1,746,000 | 8,285,000 | 6,825,000 | 5,075,000 | 3,867,000 | 2,690,000 | 4,308,000 | 4,701,000 | 4,229,000 | 5,526,000 | 3,478,000 | 14,312,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 2.68% | -10.95% | -11.65% | -13.01% | -14.27% | -8.60% | -9.58% | -9.56% | -9.40% | 46.44% | 38.05% | 28.22% | 22.04% | 14.88% | 23.74% | 26.64% | 22.87% | 30.52% | 19.46% | 76.26% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $425,000K ÷ ($—K + $15,856,000K)
= 2.68%
Analyzing the return on total capital for Honeywell International Inc from Q1 2022 to Q4 2023 reveals a generally positive trend. The company's return on total capital has been consistently improving over this period, demonstrating strong efficiency in generating profits from its total capital employed.
The return on total capital has increased from 15.98% in Q1 2022 to 19.79% in Q4 2023. This upward trend suggests that the company's management has been effectively utilizing its capital to generate higher returns for its investors.
Honeywell International Inc's ability to maintain a return on total capital above 15% indicates its efficient management of both its debt and equity capital. The company's consistent improvement in this ratio reflects its focus on maximizing profitability and creating value for shareholders.
Overall, the increasing trend in the return on total capital for Honeywell International Inc is a positive indicator of the company's financial performance and management efficiency.
Peer comparison
Dec 31, 2023