Stock Analysis on Net
Stock Analysis on Net

Honeywell International Inc. (NASDAQ:HON)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Honeywell International Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 31, 2024 34.81% = 8.72% × 3.99
Dec 31, 2023 35.68% = 9.20% × 3.88
Sep 30, 2023 31.42% = 8.83% × 3.56
Jun 30, 2023 31.52% = 8.75% × 3.60
Mar 31, 2023 30.89% = 8.73% × 3.54
Dec 31, 2022 29.74% = 7.97% × 3.73
Sep 30, 2022 30.36% = 8.92% × 3.40
Jun 30, 2022 28.96% = 8.16% × 3.55
Mar 31, 2022 28.58% = 8.29% × 3.45
Dec 31, 2021 29.85% = 8.60% × 3.47
Sep 30, 2021 30.67% = 8.53% × 3.60
Jun 30, 2021 27.73% = 7.78% × 3.56
Mar 31, 2021 25.71% = 7.28% × 3.53
Dec 31, 2020 27.23% = 7.40% × 3.68
Sep 30, 2020 27.56% = 7.85% × 3.51
Jun 30, 2020 32.23% = 9.19% × 3.50
Mar 31, 2020 35.75% = 10.99% × 3.25
Dec 31, 2019 33.22% = 10.47% × 3.17
Sep 30, 2019 — = — × 3.32
Jun 30, 2019 — = — × 3.23
Mar 31, 2019 — = — × 3.12

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Honeywell International Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2024 34.81% = 15.52% × 0.56 × 3.99
Dec 31, 2023 35.68% = 15.43% × 0.60 × 3.88
Sep 30, 2023 31.42% = 14.87% × 0.59 × 3.56
Jun 30, 2023 31.52% = 15.08% × 0.58 × 3.60
Mar 31, 2023 30.89% = 14.54% × 0.60 × 3.54
Dec 31, 2022 29.74% = 14.00% × 0.57 × 3.73
Sep 30, 2022 30.36% = 15.38% × 0.58 × 3.40
Jun 30, 2022 28.96% = 14.74% × 0.55 × 3.55
Mar 31, 2022 28.58% = 15.30% × 0.54 × 3.45
Dec 31, 2021 29.85% = 16.11% × 0.53 × 3.47
Sep 30, 2021 30.67% = 15.80% × 0.54 × 3.60
Jun 30, 2021 27.73% = 14.65% × 0.53 × 3.56
Mar 31, 2021 25.71% = 14.17% × 0.51 × 3.53
Dec 31, 2020 27.23% = 14.64% × 0.51 × 3.68
Sep 30, 2020 27.56% = 14.99% × 0.52 × 3.51
Jun 30, 2020 32.23% = 16.94% × 0.54 × 3.50
Mar 31, 2020 35.75% = 17.38% × 0.63 × 3.25
Dec 31, 2019 33.22% = 16.73% × 0.63 × 3.17
Sep 30, 2019 — = — × — × 3.32
Jun 30, 2019 — = — × — × 3.23
Mar 31, 2019 — = — × — × 3.12

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Honeywell International Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Mar 31, 2024 34.81% = 0.79 × 0.90 × 21.82% × 0.56 × 3.99
Dec 31, 2023 35.68% = 0.79 × 0.90 × 21.58% × 0.60 × 3.88
Sep 30, 2023 31.42% = 0.79 × 0.91 × 20.65% × 0.59 × 3.56
Jun 30, 2023 31.52% = 0.80 × 0.92 × 20.55% × 0.58 × 3.60
Mar 31, 2023 30.89% = 0.79 × 0.93 × 19.86% × 0.60 × 3.54
Dec 31, 2022 29.74% = 0.78 × 0.94 × 19.15% × 0.57 × 3.73
Sep 30, 2022 30.36% = 0.77 × 0.95 × 20.95% × 0.58 × 3.40
Jun 30, 2022 28.96% = 0.76 × 0.95 × 20.35% × 0.55 × 3.55
Mar 31, 2022 28.58% = 0.77 × 0.95 × 20.90% × 0.54 × 3.45
Dec 31, 2021 29.85% = 0.77 × 0.95 × 21.84% × 0.53 × 3.47
Sep 30, 2021 30.67% = 0.77 × 0.95 × 21.47% × 0.54 × 3.60
Jun 30, 2021 27.73% = 0.76 × 0.95 × 20.28% × 0.53 × 3.56
Mar 31, 2021 25.71% = 0.79 × 0.94 × 19.10% × 0.51 × 3.53
Dec 31, 2020 27.23% = 0.81 × 0.94 × 19.26% × 0.51 × 3.68
Sep 30, 2020 27.56% = 0.83 × 0.94 × 19.05% × 0.52 × 3.51
Jun 30, 2020 32.23% = 0.86 × 0.95 × 20.69% × 0.54 × 3.50
Mar 31, 2020 35.75% = 0.83 × 0.96 × 21.78% × 0.63 × 3.25
Dec 31, 2019 33.22% = 0.82 × 0.95 × 21.33% × 0.63 × 3.17
Sep 30, 2019 — = — × — × — × — × 3.32
Jun 30, 2019 — = — × — × — × — × 3.23
Mar 31, 2019 — = — × — × — × — × 3.12

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Honeywell International Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2024 8.72% = 15.52% × 0.56
Dec 31, 2023 9.20% = 15.43% × 0.60
Sep 30, 2023 8.83% = 14.87% × 0.59
Jun 30, 2023 8.75% = 15.08% × 0.58
Mar 31, 2023 8.73% = 14.54% × 0.60
Dec 31, 2022 7.97% = 14.00% × 0.57
Sep 30, 2022 8.92% = 15.38% × 0.58
Jun 30, 2022 8.16% = 14.74% × 0.55
Mar 31, 2022 8.29% = 15.30% × 0.54
Dec 31, 2021 8.60% = 16.11% × 0.53
Sep 30, 2021 8.53% = 15.80% × 0.54
Jun 30, 2021 7.78% = 14.65% × 0.53
Mar 31, 2021 7.28% = 14.17% × 0.51
Dec 31, 2020 7.40% = 14.64% × 0.51
Sep 30, 2020 7.85% = 14.99% × 0.52
Jun 30, 2020 9.19% = 16.94% × 0.54
Mar 31, 2020 10.99% = 17.38% × 0.63
Dec 31, 2019 10.47% = 16.73% × 0.63
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q1 2024 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Honeywell International Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Mar 31, 2024 8.72% = 0.79 × 0.90 × 21.82% × 0.56
Dec 31, 2023 9.20% = 0.79 × 0.90 × 21.58% × 0.60
Sep 30, 2023 8.83% = 0.79 × 0.91 × 20.65% × 0.59
Jun 30, 2023 8.75% = 0.80 × 0.92 × 20.55% × 0.58
Mar 31, 2023 8.73% = 0.79 × 0.93 × 19.86% × 0.60
Dec 31, 2022 7.97% = 0.78 × 0.94 × 19.15% × 0.57
Sep 30, 2022 8.92% = 0.77 × 0.95 × 20.95% × 0.58
Jun 30, 2022 8.16% = 0.76 × 0.95 × 20.35% × 0.55
Mar 31, 2022 8.29% = 0.77 × 0.95 × 20.90% × 0.54
Dec 31, 2021 8.60% = 0.77 × 0.95 × 21.84% × 0.53
Sep 30, 2021 8.53% = 0.77 × 0.95 × 21.47% × 0.54
Jun 30, 2021 7.78% = 0.76 × 0.95 × 20.28% × 0.53
Mar 31, 2021 7.28% = 0.79 × 0.94 × 19.10% × 0.51
Dec 31, 2020 7.40% = 0.81 × 0.94 × 19.26% × 0.51
Sep 30, 2020 7.85% = 0.83 × 0.94 × 19.05% × 0.52
Jun 30, 2020 9.19% = 0.86 × 0.95 × 20.69% × 0.54
Mar 31, 2020 10.99% = 0.83 × 0.96 × 21.78% × 0.63
Dec 31, 2019 10.47% = 0.82 × 0.95 × 21.33% × 0.63
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q1 2024 is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Honeywell International Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Mar 31, 2024 15.52% = 0.79 × 0.90 × 21.82%
Dec 31, 2023 15.43% = 0.79 × 0.90 × 21.58%
Sep 30, 2023 14.87% = 0.79 × 0.91 × 20.65%
Jun 30, 2023 15.08% = 0.80 × 0.92 × 20.55%
Mar 31, 2023 14.54% = 0.79 × 0.93 × 19.86%
Dec 31, 2022 14.00% = 0.78 × 0.94 × 19.15%
Sep 30, 2022 15.38% = 0.77 × 0.95 × 20.95%
Jun 30, 2022 14.74% = 0.76 × 0.95 × 20.35%
Mar 31, 2022 15.30% = 0.77 × 0.95 × 20.90%
Dec 31, 2021 16.11% = 0.77 × 0.95 × 21.84%
Sep 30, 2021 15.80% = 0.77 × 0.95 × 21.47%
Jun 30, 2021 14.65% = 0.76 × 0.95 × 20.28%
Mar 31, 2021 14.17% = 0.79 × 0.94 × 19.10%
Dec 31, 2020 14.64% = 0.81 × 0.94 × 19.26%
Sep 30, 2020 14.99% = 0.83 × 0.94 × 19.05%
Jun 30, 2020 16.94% = 0.86 × 0.95 × 20.69%
Mar 31, 2020 17.38% = 0.83 × 0.96 × 21.78%
Dec 31, 2019 16.73% = 0.82 × 0.95 × 21.33%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in net profit margin ratio over Q1 2024 is the increase in operating profitability measured by EBIT margin ratio.