Honeywell International Inc (HON)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	75,196,000	73,492,000	69,329,000	65,645,000	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
Total stockholders’ equity	US$ in thousands	26,674,000	17,406,000	16,947,000	16,454,000	15,856,000	17,775,000	17,299,000	17,515,000	17,319,000	17,707,000	17,541,000	18,365,000	19,242,000	17,842,000	18,202,000	18,252,000	17,790,000	18,313,000	18,147,000	17,644,000
Financial leverage ratio		2.82	4.22	4.09	3.99	3.88	3.45	3.60	3.42	3.60	3.40	3.55	3.45	3.35	3.60	3.51	3.48	3.63	3.47	3.50	3.25

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $75,196,000K ÷ $26,674,000K
= 2.82

The financial leverage ratio of Honeywell International Inc shows a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The ratio indicates the extent to which the company relies on debt to finance its operations and growth.

Honeywell's financial leverage ratio started at 3.25 in March 2020, indicating that the company had $3.25 in debt for every dollar of equity. The ratio increased to 4.22 by September 30, 2024, reaching its peak during this period. This suggests that the company's reliance on debt significantly increased over this time frame.

However, it decreased to 2.82 by December 31, 2024, showing a sudden decline in leverage, which could be due to various reasons such as debt repayments, capital structure adjustments, or changes in financial policies.

Overall, the fluctuating trend in Honeywell's financial leverage ratio over the period indicates varying levels of financial risk and the company's ability to manage its debt levels effectively. Investors and stakeholders should closely monitor these changes to assess the company's financial stability and performance.