Common-Size Income Statement
Quarterly Data
Honeywell International Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Sales Composition
- Product sales as a percentage of net sales demonstrated a gradual decreasing trend from 74.5% in March 2020 to approximately 67.65% in March 2025, exhibiting moderate volatility along the timeline. In contrast, service sales increased their share of net sales over the same period, rising from 25.5% to around 32.35%, indicating a strategic shift or greater emphasis on service-related revenue streams.
- Cost Structure
- The combined cost of products and services sold consistently decreased as a percentage of net sales from around 65.39% in March 2020 to levels near 61.14% by mid-2025. This reduction suggests an improvement in cost efficiency or changes in product/service mix favoring higher margin components. Specifically, the cost of products sold showed a notable decline from approximately 51.68% in early 2020 to around 43.93% by June 2025, while the cost of services sold slightly increased, reflecting variations in cost dynamics between the two segments.
- Profitability Metrics
- Gross profit margin improved from approximately 34.61% in March 2020 to around 38.86% by June 2025, aligning with the trend of declining cost of sales as a percentage of net sales. Operating income exhibited fluctuations, dropping to a low near 13.62% in June 2020 but later climbing to the vicinity of 20.42% by mid-2025, indicative of recovering operational efficiency and possible cost control measures.
- Expense Analysis
- Selling, general, and administrative expenses remained relatively stable, fluctuating mostly between 13.5% and 15% of net sales, with occasional spikes (e.g., 17.08% in March 2021). Research and development expenses data is available starting from late 2021, showing a slight decreasing trend from about 4.32% to 4.65%, implying sustained but controlled investment in innovation. Notably, impairment of assets held for sale appeared sporadically with minor negative impacts on net sales percentage, diminishing over the examined quarters.
- Other Income and Financial Charges
- Other income (expense) showed volatility with occasional negative values, notably -5.23% in December 2022, but generally contributed positively to overall income between roughly 0.84% and 5.23% of net sales. Interest and other financial charges increased their negative impact over time, worsening from around -0.86% in early 2020 to nearly -3.19% by mid-2025, reflecting higher financing costs or changes in capital structure.
- Tax and Net Income Trends
- Tax expenses varied broadly, ranging from a low near -1.6% to highs around -5%, without a clear upward or downward trend, possibly reflecting changes in tax regulations or income mix. Net income attributable to the company declined initially from 18.68% in March 2020 to about 9.72% in September 2020, then rebounded and fluctuated in the 12%-16% range through the later periods, indicating overall resilience despite interim volatility.
- Overall Insights
- The data reflects a gradual shift in revenue composition from product sales to service sales, improving gross margins and managing costs effectively. While operating income and net income experienced volatility, there is a trend towards recovery and stabilization at healthy profitability levels. Increased financial charges and variability in tax expenses present areas for ongoing attention to optimize financial performance.