Honeywell International Inc (HON)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $15,856,000K)
= 0.00
The debt-to-capital ratio of Honeywell International Inc has shown some fluctuation over the past five years. In 2019, the ratio was 0.46, indicating that 46% of the company's capital was financed through debt. Subsequently, in 2020, the ratio increased to 0.56, suggesting that debt financing accounted for a higher proportion of the company's capital at 56%.
In 2021, the ratio decreased to 0.51, reflecting a reduction in the reliance on debt for financing compared to the previous year. However, in 2022, the ratio increased again to 0.54, signaling a slight increase in debt financing.
As of December 31, 2023, the debt-to-capital ratio stood at 0.56, the same level as in 2020, indicating that Honeywell International Inc continues to have a significant portion of its capital structure financed through debt.
Overall, the trend in the debt-to-capital ratio shows some variability over the years, with a general range between 0.46 to 0.56. Investors and stakeholders may monitor this ratio to assess the company's leverage and financial risk.
Peer comparison
Dec 31, 2023