Honeywell International Inc (HON)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 425,000 | -1,886,000 | -2,016,000 | -2,201,000 | -2,382,000 | -1,522,000 | -1,681,000 | -1,755,000 | -1,746,000 | 8,285,000 | 6,825,000 | 5,075,000 | 3,867,000 | 2,690,000 | 4,308,000 | 4,701,000 | 4,229,000 | 5,526,000 | 3,478,000 | 14,312,000 |
| Interest expense (ttm) | US$ in thousands | 765,000 | 707,000 | 599,000 | 499,000 | 414,000 | 350,000 | 342,000 | 338,000 | 343,000 | 358,000 | 369,000 | 376,000 | 359,000 | 271,000 | 178,000 | 173,000 | 185,000 | 268,000 | 359,000 | 369,000 |
| Interest coverage | 0.56 | -2.67 | -3.37 | -4.41 | -5.75 | -4.35 | -4.92 | -5.19 | -5.09 | 23.14 | 18.50 | 13.50 | 10.77 | 9.93 | 24.20 | 27.17 | 22.86 | 20.62 | 9.69 | 38.79 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $425,000K ÷ $765,000K
= 0.56
Interest coverage ratio measures a company's ability to meet its interest obligations using its earnings before interest and taxes (EBIT).
Based on the data provided, Honeywell International Inc's interest coverage ratio has remained consistently high over the past eight quarters, ranging from 16.18 to 25.66. This indicates that the company's earnings are more than sufficient to cover its interest expenses.
The trend shows an improving interest coverage ratio over time, demonstrating the company's strong financial health and ability to comfortably meet its interest payments.
Overall, Honeywell International Inc's interest coverage ratio suggests that the company has a robust ability to service its debt obligations and indicates a low risk of defaulting on its interest payments.
Peer comparison
Dec 31, 2023
See also:
Honeywell International Inc Interest Coverage (Quarterly Data)