Honeywell International Inc. (NASDAQ:HON)

Land and Improvements

The value of land and improvements has shown a gradual decline from 259 million US dollars in 2020 to 211 million in 2023, followed by a slight increase to 216 million in 2024. This indicates a general downward trend over the five-year period with minor recovery in the final year.

Machinery and Equipment

Machinery and equipment have consistently increased from 10,008 million US dollars in 2020 to 10,965 million in 2024. The growth is steady each year, reflecting ongoing investment in or acquisition of machinery and equipment assets.

Buildings and Improvements

Buildings and improvements also show a consistent upward trend, rising from 3,245 million in 2020 to 3,658 million in 2024. This suggests continuous development or additions to building assets over the period.

Construction in Progress

The construction in progress category exhibits some fluctuations but generally trends upward from 825 million in 2020 to 1,013 million in 2024, indicating active ongoing projects with an increased focus on capital expenditure toward construction activities in the latest year.

Property, Plant and Equipment, Gross

The gross value of property, plant, and equipment steadily increased from 14,337 million in 2020 to 15,852 million in 2024, consistent with the increases seen in individual asset components. This overall growth reflects sustained capital investment in fixed assets.

Accumulated Depreciation

Accumulated depreciation increased from -8,767 million in 2020 to -9,674 million in 2023, then showed a minor improvement to -9,658 million in 2024. The generally increasing magnitude of accumulated depreciation over the years indicates ongoing wear and usage of assets, offset slightly in the final year which may suggest adjustments or disposals.

Property, Plant and Equipment, Net

The net property, plant, and equipment value decreased slightly from 5,570 million in 2020 to 5,471 million in 2022, followed by an increase to 6,194 million in 2024. This pattern reflects a temporary net asset reduction before a strong recovery possibly due to new investments outpacing depreciation in recent years.

Average Age Ratio

The average age ratio remained relatively stable over the five-year period, ranging from 61.77% to 63.97%. It slightly increased from 62.27% in 2020 to a peak of 63.97% in 2023, followed by a modest decline to 61.77% in 2024. This indicates a consistent usage level of the property, plant, and equipment assets with a minor reduction in aging intensity in the latest year.

Estimated Total Useful Life

The estimated total useful life of the assets showed a slight increase from 21 years in 2021 to 23 years in both 2023 and 2024, indicating possible reassessments or improvements in asset durability or longer expected usage periods. Prior to that, it was 22 years in 2020 and 2022, suggesting a moderate upward revision over time.

Estimated Age (Time Elapsed Since Purchase)

The estimated age exhibited minor fluctuations, starting at 14 years in 2020, dipping to 13 years in 2021, then increasing gradually to 15 years in 2023 before slightly reducing to 14 years in 2024. This pattern could reflect asset retirements or acquisitions impacting the average age of the equipment.

Estimated Remaining Life

The estimated remaining life remained mostly stable at 8 years from 2020 through 2023, with a modest increase to 9 years in 2024. This suggests that, despite aging, the assets are expected to maintain a similar or slightly extended usable duration in the most recent year.

Accumulated Depreciation

The accumulated depreciation consistently increased from US$8,767 million in 2020 to US$9,674 million in 2023, reflecting ongoing depreciation of assets. However, there was a slight decrease to US$9,658 million in 2024, suggesting a possible asset disposal or revaluation effect during that period.

Property, Plant and Equipment, Gross

The gross value of property, plant, and equipment showed a steady upward trend, rising from US$14,337 million in 2020 to US$15,852 million by 2024. This growth indicates steady capital investment or acquisition of new assets over the analyzed periods.

Land and Improvements

The value allocated to land and improvements declined from US$259 million in 2020 to US$211 million in 2023, before slightly rebounding to US$216 million in 2024. This pattern may indicate disposals or reclassifications in earlier years, followed by minor additions or reassessments toward the end of the period.

Average Age Ratio

The average age ratio, expressed as a percentage, remained relatively stable with minor fluctuations, increasing slightly from 62.27% in 2020 to a peak of 63.97% in 2023 before decreasing to 61.77% in 2024. This suggests that the overall asset base slightly aged over the years until 2023, followed by a modest rejuvenation or replacement of assets in 2024.

Property, Plant, and Equipment, Gross

The gross value of property, plant, and equipment shows a consistent upward trend over the five-year period. It increased steadily from $14,337 million in 2020 to $15,852 million in 2024, indicating ongoing investments or acquisitions in tangible fixed assets.

Land and Improvements

The value of land and improvements exhibits a slight decline from $259 million in 2020 to a low of $211 million in 2023, followed by a small uptick to $216 million in 2024. Overall, this category remains relatively stable but with minor fluctuations, suggesting limited changes in land holdings or improvements.

Depreciation Expense

Depreciation expense increased modestly from $644 million in 2020 to $671 million in 2024, with some variation in the intervening years. The increase aligns with the growth in the gross property, plant, and equipment values, reflecting higher asset base leading to higher annual depreciation charges.

Estimated Total Useful Life

The estimated total useful life of property, plant, and equipment remained relatively stable, fluctuating slightly between 21 and 23 years during the period. This suggests a consistent approach to asset lifespan estimation by management, with no major changes affecting depreciation schedules.

The analysis of the property, plant, and equipment related financial data reveals several notable trends over the five-year period ending December 31, 2024.

Accumulated Depreciation

The accumulated depreciation shows a consistent increase from 8,767 million US dollars in 2020 to 9,674 million US dollars in 2023, followed by a slight decline to 9,658 million US dollars in 2024. This upward trend over the initial four years indicates ongoing depreciation of the company's asset base, reflecting both the aging of assets and the annual application of depreciation charges. The small reduction in 2024 may suggest adjustments such as asset disposals, impairments, or changes in depreciation methodology.

Depreciation Expense

Depreciation expense fluctuates modestly but remains within a narrow range. It increased from 644 million US dollars in 2020 to 674 million US dollars in 2021, then slightly decreased to 657 million US dollars in 2022, maintaining stability around 659 to 671 million US dollars through 2023 and 2024. This pattern points to relatively stable depreciation charges year over year, implying stable capital expenditures or asset replacement policies that maintain the asset base's depreciation profile.

Time Elapsed Since Purchase

The average age of the assets, measured in years since purchase, remains relatively constant, fluctuating between 13 and 15 years. After being 14 years in 2020, it dropped to 13 years in 2021, then returned to 14, rose to 15 in 2023, and fell back to 14 in 2024. This suggests a consistent asset renewal cycle with some variation likely due to asset acquisitions and disposals influencing the average age of the property, plant, and equipment.

In summary, the data indicates a steady accumulation of depreciation, with stable annual depreciation expenses and a relatively consistent average asset age. The slight decrease in accumulated depreciation in the final year analyzed could be an area for further investigation, potentially signaling asset retirements or other accounting adjustments. Overall, the trends suggest a mature asset base with controlled and stable depreciation processes.

Property, Plant, and Equipment (net)

The net value of property, plant, and equipment exhibited a generally stable trend from 2020 through 2023, with figures fluctuating slightly between 5471 million US$ and 5660 million US$. However, there was a marked increase in 2024, reaching 6194 million US$, indicating potential investments or acquisitions leading to an expansion of the asset base.

Land and Improvements

The value of land and improvements showed a gradual decline from 259 million US$ in 2020 to 211 million US$ in 2023, followed by a modest increase to 216 million US$ in 2024. This decline over the initial years may reflect disposals or depreciation exceeding additions, whereas the slight rise in 2024 suggests some reinvestment or revaluation occurring in that year.

Depreciation Expense

The depreciation expense demonstrated a mild upward trend overall, increasing from 644 million US$ in 2020 to 671 million US$ in 2024, peaking slightly in 2021 at 674 million US$. This progression aligns with the steady asset base and suggests consistent wear and usage of the fixed assets over the years, with no abrupt changes indicating asset impairment or significant shifts in depreciation methods.

Estimated Remaining Life

The estimated remaining life of the assets remained constant at 8 years from 2020 through 2023, with an increase to 9 years in 2024. This increase may imply asset renewals, improvements, or changes in asset composition that extend the useful life of the company's property, plant, and equipment.