Analysis of Property, Plant and Equipment
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- Balance Sheet: Assets
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
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Property, Plant and Equipment Disclosure
Honeywell International Inc., balance sheet: property, plant and equipment
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).
Over the five-year period, significant fluctuations are observed in the composition of property, plant, and equipment. Gross property, plant, and equipment exhibited a general increasing trend from 2021 to 2024, before experiencing a substantial decrease in 2025. A closer examination of the individual components reveals varying patterns.
- Land and Improvements
- Land and improvements demonstrated a decreasing trend throughout the period, declining from US$226 million in 2021 to US$177 million in 2025. This suggests potential disposals of land or a reclassification of assets.
- Machinery and Equipment
- Machinery and equipment, representing the largest portion of gross property, plant, and equipment, increased steadily from US$10,143 million in 2021 to US$10,965 million in 2024. However, a considerable decrease to US$8,095 million was noted in 2025, potentially indicating significant asset retirements or divestitures.
- Buildings and Improvements
- Buildings and improvements also showed consistent growth between 2021 and 2024, rising from US$3,225 million to US$3,658 million. Similar to machinery and equipment, a decline to US$3,024 million occurred in 2025.
- Construction in Progress
- Construction in progress fluctuated over the period. It decreased from US$856 million in 2021 to US$769 million in 2022, then increased to US$1,013 million in 2024 before decreasing to US$764 million in 2025. These changes likely reflect the timing of ongoing capital projects.
- Accumulated Depreciation
- Accumulated depreciation consistently increased from US$8,888 million in 2021 to US$9,674 million in 2023, before decreasing slightly to US$9,658 million in 2024 and then decreasing more substantially to US$7,431 million in 2025. The decrease in 2025 correlates with the reduction in gross property, plant, and equipment, suggesting the disposal of depreciated assets.
- Property, Plant, and Equipment, Net
- Net property, plant, and equipment increased from US$5,562 million in 2021 to US$6,194 million in 2024, reflecting the growth in gross assets outpacing accumulated depreciation. However, a significant decrease to US$4,629 million was observed in 2025, driven by the combined effect of reduced gross assets and lower accumulated depreciation.
The substantial changes observed in 2025 across multiple categories warrant further investigation to understand the underlying reasons, such as potential strategic shifts, asset sales, or significant changes in capital expenditure plans.
Asset Age Ratios (Summary)
Honeywell International Inc., asset age ratios
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).
The analysis of property, plant, and equipment reveals a generally stable profile over the five-year period, with some subtle shifts in asset age and useful life estimations. The average age ratio fluctuates within a narrow band, while estimated useful life and remaining life exhibit minor adjustments. These observations suggest a consistent approach to asset management, with periodic reassessments of asset longevity.
- Average Age Ratio
- The average age ratio demonstrates a slight increase from 62.49% in 2021 to 63.87% in 2022, followed by a marginal rise to 63.97% in 2023. A decrease to 61.77% is then observed in 2024, before settling at 62.53% in 2025. This indicates a relatively stable proportion of the asset base that has been in use for a significant portion of its useful life, with a slight dip in 2024 potentially reflecting recent asset acquisitions or disposals.
- Estimated Total Useful Life
- The estimated total useful life of the assets increased from 21 years in 2021 to 22 years in 2022 and 23 years in 2023. It remained constant at 23 years in 2024 and decreased slightly to 22 years in 2025. This suggests a periodic re-evaluation of asset longevity, potentially influenced by technological advancements, maintenance practices, or changes in usage patterns. The increases in estimated useful life could also indicate improved asset care or a shift towards more durable asset types.
- Estimated Age and Remaining Life
- The estimated age, representing the time elapsed since purchase, consistently increased from 13 years in 2021 to 15 years in 2023, then stabilized at 14 years in both 2024 and 2025. Concurrently, the estimated remaining life remained consistently at 8 years from 2021 to 2023, increased to 9 years in 2024, and then returned to 8 years in 2025. The correlation between these two metrics suggests a consistent depreciation pattern, with adjustments to remaining life potentially reflecting the impact of the changes in estimated total useful life.
Overall, the trends suggest a mature asset base undergoing regular assessment. The minor fluctuations observed do not indicate any significant concerns but warrant continued monitoring to ensure accurate depreciation calculations and informed capital expenditure planning.
Average Age
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).
2025 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land and improvements)
= 100 × ÷ ( – ) =
An examination of the financial information reveals trends in property, plant, and equipment, alongside associated depreciation. Gross property, plant, and equipment exhibited a generally increasing pattern from 2021 through 2024, before experiencing a substantial decrease in 2025. Accumulated depreciation consistently increased from 2021 to 2023, plateaued in 2024, and then decreased significantly in 2025. Land and improvements showed a slight decline over the period, with a more pronounced reduction in the final year.
- Gross Property, Plant & Equipment
- The value of gross property, plant, and equipment increased from US$14,450 million in 2021 to US$15,852 million in 2024, representing a cumulative increase of approximately 9.7%. However, a considerable decrease to US$12,060 million was observed in 2025, suggesting potential asset disposals or reclassifications.
- Accumulated Depreciation
- Accumulated depreciation rose steadily from US$8,888 million in 2021 to US$9,674 million in 2023. The increase slowed in 2024, remaining relatively stable at US$9,658 million. A significant reduction to US$7,431 million in 2025 mirrors the decrease in gross property, plant, and equipment, potentially indicating the removal of depreciated assets from the balance sheet.
- Land and Improvements
- Land and improvements experienced a gradual decline from US$226 million in 2021 to US$177 million in 2025. This decrease, while not substantial in comparison to the overall property, plant, and equipment values, suggests potential land sales or reclassifications.
- Average Age Ratio
- The average age ratio remained relatively stable between 62.49% and 63.97% from 2021 to 2023. A slight decrease to 61.77% was noted in 2024, followed by an increase to 62.53% in 2025. The consistency of this ratio suggests a relatively stable pattern of asset renewal or depreciation over the observed period, despite the significant changes in absolute values of property, plant, and equipment and accumulated depreciation in 2025.
The substantial changes observed in 2025 warrant further investigation to determine the underlying reasons for the decrease in both gross property, plant, and equipment and accumulated depreciation. Potential explanations include asset sales, retirements, or a significant reclassification of assets.
Estimated Total Useful Life
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).
2025 Calculations
1 Estimated total useful life = (Property, plant and equipment, gross – Land and improvements) ÷ Depreciation expense
= ( – ) ÷ =
Over the five-year period examined, property, plant, and equipment, gross exhibited an increasing trend until 2024, followed by a substantial decrease in 2025. Depreciation expense generally followed an upward trajectory, though at a slower rate, before declining in the final year. The estimated total useful life of these assets showed a slight increase initially, then stabilized, and finally decreased modestly.
- Gross Property, Plant, and Equipment
- The gross value of property, plant, and equipment increased from US$14,450 million in 2021 to US$15,852 million in 2024, representing a cumulative growth of approximately 9.7%. However, a significant reduction occurred in 2025, with the value falling to US$12,060 million. This decrease suggests potential asset disposals, impairments, or reclassifications.
- Land and Improvements
- The value of land and improvements demonstrated a relatively stable pattern, fluctuating between US$211 million and US$226 million. A decrease to US$177 million was observed in 2025, mirroring the trend in gross property, plant, and equipment, potentially indicating related disposals or reclassifications.
- Depreciation Expense
- Depreciation expense increased from US$674 million in 2021 to US$671 million in 2024, indicating a consistent level of asset consumption. A decrease to US$546 million in 2025 aligns with the reduction in the gross value of property, plant, and equipment, suggesting a lower asset base subject to depreciation.
- Estimated Total Useful Life
- The estimated total useful life of the assets increased from 21 years in 2021 to 23 years in 2023, potentially reflecting revisions in asset usage expectations or technological advancements extending asset longevity. The value remained at 23 years in 2024, and then decreased to 22 years in 2025. This final decrease could be due to changes in accounting policies, asset retirement schedules, or a shift towards assets with shorter expected lifespans.
The convergence of decreasing gross property, plant, and equipment values, reduced depreciation expense, and a slight decrease in estimated useful life in 2025 warrants further investigation to understand the underlying drivers of these changes. The trends suggest a potential strategic shift in asset management or a significant event impacting the company’s asset base.
Estimated Age, Time Elapsed since Purchase
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).
2025 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= ÷ =
Analysis reveals a generally increasing trend in accumulated depreciation from 2021 to 2023, followed by a significant decrease in 2024 and 2025. Depreciation expense remained relatively stable between 2021 and 2023, with a noticeable reduction in 2024 and 2025. The reported time elapsed since purchase indicates a consistent asset age profile, with a slight fluctuation in 2024.
- Accumulated Depreciation
- Accumulated depreciation increased from US$8,888 million in 2021 to US$9,674 million in 2023, representing a cumulative increase of approximately 8.9%. However, a substantial decrease to US$7,431 million occurred in 2025. This decline could indicate asset disposals, impairment charges, or a change in depreciation methods. Further investigation is warranted to determine the underlying cause.
- Depreciation Expense
- Depreciation expense exhibited relative stability between 2021 and 2023, fluctuating between US$657 million and US$674 million. A decrease to US$546 million in 2025 mirrors the reduction in accumulated depreciation, suggesting a corresponding decrease in the depreciable asset base. This decrease could be due to fewer assets being subject to depreciation or a change in estimated useful lives.
- Time Elapsed Since Purchase
- The reported time elapsed since purchase remained consistently around 14 years, with a value of 13 years in 2021. The slight decrease to 14 years in 2024 and its continuation into 2025 suggests a potential pattern of recent asset acquisitions, offsetting the aging of existing assets. This metric, when considered alongside the depreciation figures, provides insight into the company’s asset renewal cycle.
The convergence of decreasing accumulated depreciation and depreciation expense in 2024 and 2025 warrants further scrutiny. A comprehensive review of asset additions, disposals, and changes in depreciation policies is recommended to fully understand these trends.
Estimated Remaining Life
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).
2025 Calculations
1 Estimated remaining life = (Property, plant and equipment, net – Land and improvements) ÷ Depreciation expense
= ( – ) ÷ =
The net value of property, plant, and equipment exhibited fluctuations over the five-year period. An initial decrease from $5,562 million in 2021 to $5,471 million in 2022 was followed by increases in subsequent years, reaching $6,194 million in 2024. A significant decline to $4,629 million was then observed in 2025.
Land and improvements demonstrated a consistent, albeit gradual, decrease throughout the period, moving from $226 million in 2021 to $177 million in 2025. Depreciation expense generally remained stable, fluctuating between $657 million and $674 million from 2022 to 2024, before decreasing to $546 million in 2025.
- Property, Plant & Equipment Net Trend
- The initial decline in net property, plant, and equipment could be attributed to disposals, impairments, or a higher level of depreciation than acquisitions. The subsequent increases in 2023 and 2024 suggest increased investment in fixed assets. The substantial decrease in 2025 warrants further investigation, potentially indicating significant asset retirements, impairments, or divestitures.
- Depreciation Expense & Estimated Remaining Life Relationship
- The depreciation expense remained relatively consistent from 2022 through 2024 despite the increasing net value of property, plant, and equipment. This suggests that the rate of new asset additions was offset by the depreciation of existing assets. The decrease in depreciation expense in 2025 coincides with the significant drop in net property, plant, and equipment, indicating a reduction in the asset base subject to depreciation.
- Estimated Remaining Life
- The estimated remaining life of the assets remained constant at 8 years from 2021 to 2023, increasing to 9 years in 2024, and then returning to 8 years in 2025. The increase in 2024 could be due to a reassessment of asset lives, potentially reflecting upgrades or maintenance extending their useful life. The reversion to 8 years in 2025 may be linked to the asset reductions observed that year.
The combined trends suggest a period of investment in property, plant, and equipment followed by a significant reduction in the asset base in the final year of the observed period. Further analysis is recommended to understand the drivers behind the 2025 decline in net property, plant, and equipment and the corresponding decrease in depreciation expense.