Honeywell International Inc (HON)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 61,525,000 | 61,296,000 | 62,337,000 | 59,883,000 | 62,275,000 | 60,287,000 | 62,258,000 | 63,352,000 | 64,470,000 | 64,191,000 | 63,945,000 | 63,561,000 | 64,586,000 | 63,459,000 | 63,604,000 | 57,422,000 | 58,679,000 | 60,104,000 | 57,750,000 | 58,560,000 |
| 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 |
| Financial leverage ratio | 3.88 | 3.56 | 3.60 | 3.54 | 3.73 | 3.40 | 3.55 | 3.45 | 3.47 | 3.60 | 3.56 | 3.53 | 3.68 | 3.51 | 3.50 | 3.25 | 3.17 | 3.32 | 3.23 | 3.12 |
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 fluctuations over the past eight quarters. The ratio peaked at 3.88 in Q4 2023, indicating that the company financed its assets primarily through debt. This was an increase from the ratio of 3.73 in Q4 2022, suggesting a higher reliance on debt in the most recent quarter.
However, it is important to note that the ratio decreased to 3.56 in Q3 2023 before increasing again in Q4 2023. Overall, the trend indicates some variability in the company's capital structure and leverage levels.
The financial leverage ratio helps assess the proportion of a company's assets that are financed through debt. A higher ratio suggests higher financial risk due to increased debt obligations and interest payments. Conversely, a lower ratio indicates a lower reliance on debt for financing operations.
In the context of Honeywell International Inc, the recent fluctuations in the financial leverage ratio highlight the company's changing approach to capital structure and debt management. Further analysis of the company's financial statements and overall debt position would provide a more comprehensive understanding of its leverage strategy.
Peer comparison
Dec 31, 2023
See also:
Honeywell International Inc Financial Leverage (Quarterly Data)