Honeywell International Inc (HON)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 61,525,000 | 62,275,000 | 64,470,000 | 64,586,000 | 58,679,000 |
| Total stockholders’ equity | US$ in thousands | 15,856,000 | 16,697,000 | 18,569,000 | 17,549,000 | 18,494,000 |
| Financial leverage ratio | 3.88 | 3.73 | 3.47 | 3.68 | 3.17 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $61,525,000K ÷ $15,856,000K
= 3.88
The financial leverage ratio of Honeywell International Inc has shown an increasing trend from 2019 to 2023, indicating a higher level of financial leverage over the years. The ratio has ranged from 3.17 in 2019 to 3.88 in 2023. This suggests that the company has been relying more on debt to finance its operations and investments, potentially increasing financial risk. It is important to closely monitor the trend of this ratio to ensure that the company maintains a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023
Company name
Symbol
Financial leverage ratio
Honeywell International Inc
HON
3.88
Raytheon Technologies Corp
RTX
2.71