Honeywell International Inc (HON)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,365,000 | 61,525,000 | 62,275,000 | 64,470,000 | 64,586,000 |
| Total stockholders’ equity | US$ in thousands | 957,000 | 15,856,000 | 17,319,000 | 19,242,000 | 17,790,000 |
| Financial leverage ratio | 1.43 | 3.88 | 3.60 | 3.35 | 3.63 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,365,000K ÷ $957,000K
= 1.43
The financial leverage ratio for Honeywell International Inc has shown fluctuations over the years. As of December 31, 2020, the ratio stood at 3.63, indicating that the company had a higher level of leverage at that time. Subsequently, the ratio decreased to 3.35 by December 31, 2021, reflecting a potential improvement in the company's ability to meet its financial obligations.
However, by December 31, 2022, the ratio increased to 3.60, suggesting a return to higher leverage levels. This trend continued as the ratio further rose to 3.88 by December 31, 2023, indicating a potentially increased reliance on debt financing.
Significantly, by December 31, 2024, the financial leverage ratio experienced a substantial decline to 1.43. Such a sharp decrease may signal a significant reduction in the company's reliance on debt to finance its operations, possibly indicating a strategic shift towards a more conservative capital structure.
Overall, the fluctuation in Honeywell International Inc's financial leverage ratio over the years highlights varying levels of debt utilization and underscores the importance of monitoring the company's leverage position for insights into its financial risk and stability.
Peer comparison
Dec 31, 2024