Financial statement analysis and common stock valuation

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Analysis of Liquidity Ratios

Measures the adequacy of Honeywell International Inc. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Balance Sheet: Assets
Quarterly Data

The assets reports major classes and amounts of resources owned or controlled by Honeywell International Inc..

Common-Size Income Statement
Quarterly Data

Income statement components (revenues and expenses) shown as percentage of total sales.

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

An approach to decomposing Honeywell International Inc. return on equity, return on assets, and net profit margin ratio as the product of other financial ratios.

• Two-Component Disaggregation of ROE
• Three-Component Disaggregation of ROE
• Five-Component Disaggregation of ROE
• Two-Component Disaggregation of ROA
• Four-Component Disaggregation of ROA
• Disaggregation of Net Profit Margin

Capital Asset Pricing Model (CAPM)

CAPM is a theory concentrated with deriving the expected rates of return on risky assets based on the assets’ systematic risk levels. Systematic risk is the variability of returns that is due to macroeconomic factors that affect all risky assets. It cannot be eliminated by diversification.

• Rates of Return
• Variance and Covariance
• Systematic Risk (β) Estimation
• Expected Rate of Return

Analysis of Reportable Segments

Honeywell International Inc. operates in 4 segments: Aerospace Technologies; Industrial Automation; Building Automation; and Energy and Sustainability Solutions.

• Segment Profit Margin
• Segment Return on Assets (Segment ROA)
• Segment Asset Turnover
• Segment Capital Expenditures to Depreciation
• Net sales
• Segment profit
• Depreciation and amortization
• Capital expenditures
• Total assets

Analysis of Liquidity Ratios
Quarterly Data

Measures the adequacy of a Honeywell International Inc. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Income Statement
Quarterly Data

The income statement (statement of earnings) reports on the performance of Honeywell International Inc., the result of its operating activities.

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Honeywell International Inc. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Analysis of Profitability Ratios
Quarterly Data

Measures the income of Honeywell International Inc. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)