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Honeywell International Inc. (HON) | Long-term Debt and Solvency Analysis

Solvency ratios also known as long-term debt ratios measure a company's ability to meet long-term obligations.


Ratios (Summary)

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Honeywell International Inc., debt and solvency ratios

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
chart Debt to equity
chart Debt to capital
chart Interest coverage

Source: Based on data from Honeywell International Inc. Annual Reports

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Honeywell International Inc.'s debt-to-equity ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Honeywell International Inc.'s debt-to-capital ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Honeywell International Inc.'s interest coverage ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011 not reaching 2009 level.

Debt to Equity

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions)
chart Short-term borrowings
chart Current maturities of long-term debt
chart Commercial paper
chart Long-term debt
chart Total debt
chart Honeywell shareowners’ equity
  Debt to Equity, Comparison to Industry
chart Honeywell International Inc.1
  Industry, Industrials

Source: Based on data from Honeywell International Inc. Annual Reports

2011 Calculations

1 Debt to equity = Total debt ÷ Honeywell shareowners’ equity
= ÷ =

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Honeywell International Inc.'s debt-to-equity ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.

Debt to Capital

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions)
chart Short-term borrowings
chart Current maturities of long-term debt
chart Commercial paper
chart Long-term debt
chart Total debt
chart Honeywell shareowners’ equity
chart Total capital
  Debt to Capital, Comparison to Industry
chart Honeywell International Inc.1
  Industry, Industrials

Source: Based on data from Honeywell International Inc. Annual Reports

2011 Calculations

1 Debt to capital = Total debt ÷ Total capital
= ÷ =

Ratio Description The company
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Honeywell International Inc.'s debt-to-capital ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.

Interest Coverage

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions)
chart Net income attributable to Honeywell
chart Add: Net income attributable to the noncontrolling interest
chart Add: Interest and other financial charges
chart Add: Income tax expense (benefit)
chart Earnings before interest and tax (EBIT)
  Interest Coverage, Comparison to Industry
chart Honeywell International Inc.1
  Industry, Industrials

Source: Based on data from Honeywell International Inc. Annual Reports

2011 Calculations

1 Interest coverage = EBIT ÷ Interest expense
= ÷ =

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Honeywell International Inc.'s interest coverage ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011 not reaching 2009 level.

May 23, 2012

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