Analysis of Debt
Total Debt (Carrying Amount)
Honeywell International Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Total debt exhibited a generally increasing trend over the five-year period, although with fluctuations in the interim. A review of the components reveals the drivers behind this overall movement.
- Short-Term Borrowings
- Commercial paper and other short-term borrowings decreased from US$3,542 million in 2021 to US$2,085 million in 2023, indicating a reduction in reliance on this funding source. However, a significant increase is then observed, rising to US$5,893 million by 2025. This suggests a strategic shift towards utilizing short-term debt in more recent periods.
- Current Maturities of Long-Term Debt
- Current maturities of long-term debt remained relatively stable between 2021 and 2023, fluctuating between US$1,730 million and US$1,803 million. A decrease to US$1,347 million in 2024 was followed by a modest increase to US$1,546 million in 2025.
- Long-Term Debt
- Long-term debt, excluding current maturities, demonstrated consistent growth from US$14,254 million in 2021 to US$27,141 million in 2025. The most substantial increase occurred between 2023 and 2024, rising from US$16,562 million to US$25,479 million. This indicates a deliberate strategy to increase long-term financing.
- Total Debt
- Total debt remained relatively flat between 2021 and 2022, at approximately US$19,600 million. A gradual increase was observed in 2023, reaching US$20,443 million. However, a substantial rise is evident in the subsequent two years, with total debt reaching US$31,099 million in 2024 and US$34,580 million in 2025. This significant increase is primarily driven by the growth in long-term debt, coupled with the later increase in short-term borrowings.
The composition of the debt structure shifted over the period, with a notable increase in both long-term debt and, more recently, short-term borrowings. This suggests a potential change in financing strategy, possibly related to investment opportunities or shifts in market conditions.
Total Debt (Fair Value)
| Dec 31, 2025 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Commercial paper and other short-term borrowings | 5,893) |
| Long-term debt and related current maturities | 28,144) |
| Total debt (fair value) | 34,037) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.98 |
Based on: 10-K (reporting date: 2025-12-31).
Weighted-average Interest Rate on Debt
Weighted average interest rate on debt: 3.81%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.68% | 5,893) | 217) | |
| 2.50% | 1,500) | 38) | |
| 1.10% | 1,000) | 11) | |
| 3.50% | 763) | 27) | |
| 4.65% | 1,150) | 53) | |
| 4.95% | 500) | 25) | |
| 2.25% | 881) | 20) | |
| 4.25% | 750) | 32) | |
| 2.70% | 750) | 20) | |
| 4.88% | 500) | 24) | |
| 4.70% | 1,000) | 47) | |
| 3.38% | 881) | 30) | |
| 1.95% | 949) | 19) | |
| 4.95% | 500) | 25) | |
| 1.75% | 1,496) | 26) | |
| 4.75% | 650) | 31) | |
| 0.75% | 587) | 4) | |
| 3.75% | 587) | 22) | |
| 5.00% | 1,100) | 55) | |
| 4.50% | 1,000) | 45) | |
| 4.13% | 1,174) | 48) | |
| 5.00% | 1,450) | 73) | |
| 3.75% | 881) | 33) | |
| 5.70% | 441) | 25) | |
| 5.70% | 462) | 26) | |
| 5.38% | 417) | 22) | |
| 3.81% | 442) | 17) | |
| 2.80% | 701) | 20) | |
| 5.25% | 1,750) | 92) | |
| 5.35% | 650) | 35) | |
| 4.37% | 1,000) | 44) | |
| 6.63% | 201) | 13) | |
| 9.07% | 51) | 5) | |
| 2.50% | 110) | 3) | |
| Total | 32,167) | 1,225) | |
| 3.81% | |||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 1,225 ÷ 32,167 = 3.81%