Honeywell International Inc (HON)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Honeywell International Inc provide insights into the company's ability to meet its long-term financial obligations and manage its debt levels.
1. Debt-to-assets ratio: This ratio remained relatively stable, fluctuating between 0.32 and 0.34 throughout the quarters. It indicates that around 31% to 34% of Honeywell's total assets are financed by debt, with the remaining funded by equity.
2. Debt-to-capital ratio: This ratio also showed consistency, hovering around 0.53 to 0.56, reflecting the proportion of debt and equity in funding Honeywell's operations. The company relies on debt for approximately 53% to 56% of its capital structure.
3. Debt-to-equity ratio: This ratio portrays the relationship between debt and shareholders' equity. It increased from 0.96 to 1.29 over the quarters, suggesting a rise in debt relative to equity. By the end of Q4 2023, the ratio stood at 1.29, indicating that for every dollar of equity, Honeywell had $1.29 in debt.
4. Financial leverage ratio: This ratio measures the extent to which the company's operations are funded by debt. It varied between 3.40 and 3.88, showing the impact of debt on Honeywell's financial structure. A higher financial leverage ratio indicates higher financial risk due to increased leverage.
Overall, the consistent trends in the debt-related ratios suggest that Honeywell has maintained a stable solvency position, balancing its debt and equity financing. However, the increase in the debt-to-equity ratio over the quarters warrants monitoring to ensure the company's debt levels are sustainable and do not pose excessive risk to its financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Honeywell International Inc's interest coverage ratio has shown a consistent trend of improvement over the past eight quarters, increasing from 16.18 in Q4 2022 to 25.66 in Q1 2022. This indicates the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). The upward trajectory of the interest coverage ratio suggests that Honeywell's earnings are comfortably covering its interest expenses, providing a measure of financial stability and liquidity. Overall, the increasing trend in interest coverage reflects positively on Honeywell's financial health and ability to manage its debt obligations effectively.
See also:
Honeywell International Inc Solvency Ratios (Quarterly Data)