Honeywell International Inc. (NASDAQ:HON)

Current assets exhibited fluctuations over the five-year period. Initially, a slight decrease is observed from 2021 to 2022, followed by a more pronounced decline through 2023. A significant increase in both current assets and adjusted current assets is then noted in 2024 and 2025, indicating a reversal of the prior downward trend.

Overall Trend

The figures demonstrate a period of contraction in current assets between 2021 and 2023, followed by substantial growth in 2024 and 2025. The growth in 2024 and 2025 brings the values to the highest levels observed within the analyzed timeframe.

Comparison of Current and Adjusted Assets

Adjusted current assets consistently exceed reported current assets across all years. The difference between the two values is relatively stable, ranging from approximately US$170 million to US$200 million annually. This suggests a consistent application of adjustments to the initially reported current asset figures.

Year-over-Year Changes

From 2021 to 2022, current assets decreased by approximately 1.9%. The decline from 2022 to 2023 was more substantial, at roughly 5.9%. However, 2024 saw a significant increase of 18.5% in current assets, and this growth continued into 2025 with an increase of approximately 8.9%.

Adjusted current assets followed a similar pattern, with a decrease of 1.7% from 2021 to 2022, a decline of 3.9% from 2022 to 2023, and increases of 18.8% and 8.4% in 2024 and 2025, respectively.

The consistent difference between current and adjusted current assets warrants further investigation to understand the nature of these adjustments. The substantial increases observed in both metrics during the final two years of the period suggest a positive shift in the company’s short-term asset position.

Total assets exhibited a fluctuating pattern over the five-year period. Initially, a decline is observed, followed by a substantial increase, and then a slight decrease. The adjusted total assets mirrored this trend closely, indicating that the adjustments made did not fundamentally alter the overall asset trajectory.

Overall Trend

From 2021 to 2022, total assets decreased from US$64,470 million to US$62,275 million, representing a decline of approximately 3.4%. This downward trend continued into 2023, with total assets reaching US$61,525 million. However, a significant increase occurred between 2023 and 2024, with total assets rising to US$75,196 million. A minor decrease was then noted in 2025, with total assets reported at US$73,681 million.

Adjusted Total Assets vs. Total Assets

The difference between total assets and adjusted total assets remained relatively small throughout the period. In each year, the adjusted value was consistently within a narrow range of the reported total assets. This suggests that the adjustments applied were not material enough to cause a significant divergence in the overall asset position. The adjustments in 2024 and 2025 were particularly minimal, with adjusted total assets being US$76 and US$3 million different from the reported total assets, respectively.

Percentage Change Analysis

The largest percentage increase in total assets occurred between 2023 and 2024, with a growth rate of approximately 22.1%. The decline from 2021 to 2023 was more gradual, averaging approximately 1.6% per year. The decrease from 2024 to 2025 was minimal, at approximately 2.0%.

In conclusion, the asset position experienced a period of contraction followed by substantial growth, with a slight retraction in the most recent year. The adjustments to total assets did not significantly impact the observed trends, suggesting they relate to items that do not fundamentally alter the overall asset base.

Current liabilities exhibited volatility over the five-year period, while adjusted current liabilities demonstrated a more consistent, albeit fluctuating, pattern. An initial increase in reported current liabilities was followed by a decrease and subsequent increases through the end of the period. The difference between reported and adjusted current liabilities suggests the presence of items undergoing reclassification or refinement.

Overall Trends in Current Liabilities

Reported current liabilities increased from US$19,508 million in 2021 to US$19,938 million in 2022, representing a 2.2% increase. A subsequent decrease of 6.7% brought the value to US$18,539 million in 2023. Further increases were observed in 2024 and 2025, reaching US$21,256 million and US$23,414 million respectively, signifying growth of 14.7% and 10.1% year-over-year.

Trends in Adjusted Current Liabilities

Adjusted current liabilities showed a more moderate pattern. From 2021 to 2022, adjusted current liabilities increased by 1.0% from US$15,754 million to US$15,899 million. A decrease of 8.2% was recorded in 2023, bringing the value to US$14,579 million. Adjusted current liabilities then increased by 18.7% in 2024 to US$17,363 million, and continued to rise by 10.6% in 2025, reaching US$19,202 million.

Difference Between Reported and Adjusted Values

The difference between current liabilities and adjusted current liabilities varied throughout the period. In 2021, the difference was US$3,754 million. This difference narrowed to US$4,039 million in 2022, then widened to US$3,960 million in 2023. The gap expanded significantly in 2024 to US$3,893 million and further to US$4,212 million in 2025. This suggests a growing magnitude of items requiring adjustment to the initially reported current liability figure.

Percentage Change Analysis

The percentage change in adjusted current liabilities generally lagged behind the percentage change in reported current liabilities. For example, while reported current liabilities increased by 14.7% from 2023 to 2024, adjusted current liabilities increased by 18.7% over the same period. This indicates that adjustments played a more significant role in the overall change in adjusted current liabilities compared to the initial reported figures.

Total liabilities exhibited a relatively stable pattern from 2021 to 2023, followed by substantial increases in 2024 and 2025. Adjusted total liabilities mirrored this trend, though consistently reported lower values than the unadjusted figures. The difference between the two liability measures also increased over the observed period.

Total Liabilities Trend

Total liabilities decreased slightly from $45,221 million in 2021 to $44,949 million in 2022. A minor increase was then noted in 2023, reaching $45,084 million. Significant growth occurred in 2024, with total liabilities rising to $56,035 million, and continued into 2025, reaching $58,651 million. This represents a cumulative increase of approximately 29.6% from 2021 to 2025.

Adjusted Total Liabilities Trend

Adjusted total liabilities followed a similar pattern, beginning at $37,736 million in 2021 and decreasing to $37,445 million in 2022. An increase to $37,822 million was observed in 2023. Substantial growth was then recorded in 2024, reaching $49,130 million, and continuing to $51,711 million in 2025. This represents a cumulative increase of approximately 37.0% from 2021 to 2025.

Difference Between Total and Adjusted Liabilities

The difference between total liabilities and adjusted total liabilities was $7,485 million in 2021. This difference narrowed to $7,504 million in 2022, then slightly widened to $7,262 million in 2023. However, the gap expanded considerably in 2024 to $6,905 million and further to $6,940 million in 2025. This suggests that the adjustments made to total liabilities are becoming increasingly significant in magnitude.

The consistent presence of adjustments to total liabilities warrants further investigation to understand the nature of these adjustments and their impact on the overall financial position. The accelerating growth in both total and adjusted liabilities in the later years of the period suggests a potential shift in the company’s financing strategy or operational needs.

The reported total shareowners’ equity exhibited volatility between 2021 and 2025. Conversely, adjusted total shareowners’ equity demonstrated a more stable, though also fluctuating, pattern over the same period. A comparative analysis reveals significant differences between the two equity measures, suggesting the impact of adjustments on the overall equity position.

Total Shareowners’ Equity Trend

Total shareowners’ equity decreased from US$18,569 million in 2021 to US$16,697 million in 2022, representing a decline of approximately 10.6%. A further decrease was observed in 2023, reaching US$15,856 million. However, a substantial increase occurred in 2024, with equity rising to US$18,619 million. This positive trend was not sustained, as equity declined again in 2025 to US$13,904 million, marking the lowest value within the observed timeframe.

Adjusted Total Shareowners’ Equity Trend

Adjusted total shareowners’ equity began at US$26,421 million in 2021 and decreased to US$24,735 million in 2022, a reduction of roughly 6.7%. A similar downward trend continued into 2023, with adjusted equity reaching US$23,634 million. In 2024, adjusted equity increased to US$26,142 million, mirroring the pattern observed in total shareowners’ equity. Finally, adjusted equity decreased to US$21,973 million in 2025.

Difference Between Measures

Throughout the period, adjusted total shareowners’ equity consistently exceeded total shareowners’ equity. The difference between the two values ranged from approximately US$7,852 million in 2021 to US$8,069 million in 2024. This consistent difference indicates that the adjustments being made to the equity accounts are material and significantly impact the reported equity position. The magnitude of the difference remained relatively stable, despite fluctuations in both equity measures.

Volatility

Both equity measures experienced periods of increase and decrease. Total shareowners’ equity demonstrated greater volatility, with a more pronounced decline in 2025. Adjusted total shareowners’ equity, while also fluctuating, exhibited a less dramatic pattern of change. This suggests that the adjustments may be smoothing out some of the inherent volatility in the underlying equity accounts.

Over the five-year period ending December 31, 2025, both reported and adjusted financial figures demonstrate notable shifts in the company’s capital structure. Total reported debt generally increased, while total reported shareowners’ equity experienced fluctuations. The adjusted figures reveal a similar pattern, but with differing magnitudes and implications.

Total Capital

Total reported capital decreased from US$38,168 million in 2021 to US$36,267 million in 2022, then remained relatively stable at US$36,299 million in 2023. A substantial increase is observed in 2024, reaching US$49,718 million, followed by a slight decrease to US$48,484 million in 2025. Adjusted total capital follows a similar trend, beginning at US$47,052 million in 2021, decreasing to US$45,272 million in 2022, remaining stable at US$45,170 million in 2023, and then increasing significantly to US$58,367 million in 2024 before decreasing slightly to US$57,536 million in 2025. The adjusted capital consistently exceeds the reported capital throughout the period.

Debt Levels

Total reported debt remained relatively stable between 2021 and 2022, at approximately US$19,600 million. An increase is then observed in 2023, reaching US$20,443 million, followed by more substantial increases in 2024 and 2025, to US$31,099 million and US$34,580 million, respectively. Adjusted total debt mirrors this trend, starting at US$20,631 million in 2021 and increasing to US$20,537 million in 2022, then to US$21,536 million in 2023, and significantly to US$32,225 million in 2024 and US$35,563 million in 2025. The adjusted debt figures are consistently higher than the reported debt figures.

Shareowners’ Equity

Total reported shareowners’ equity decreased from US$18,569 million in 2021 to US$16,697 million in 2022 and further to US$15,856 million in 2023. A recovery is seen in 2024, with equity rising to US$18,619 million, but it declines again in 2025 to US$13,904 million. Adjusted total shareowners’ equity exhibits a similar pattern, starting at US$26,421 million in 2021, decreasing to US$24,735 million in 2022 and US$23,634 million in 2023, increasing to US$26,142 million in 2024, and then decreasing to US$21,973 million in 2025. The adjusted equity values are notably higher than the reported equity values throughout the period.

The consistent difference between reported and adjusted figures suggests the presence of items impacting the capitalization structure that are treated differently under the adjusted calculations. The significant increases in both reported and adjusted debt in 2024 and 2025, coupled with the fluctuations in shareowners’ equity, warrant further investigation to understand the underlying drivers of these changes and their potential impact on the company’s financial health.

Net sales exhibited a generally increasing trend from 2021 to 2024, followed by a slight decrease in 2025. Adjusted net sales mirrored this pattern, consistently exceeding reported net sales throughout the period. The difference between net sales and adjusted net sales suggests the presence of items requiring adjustment to present a more representative view of core revenue performance.

Overall Trend

Both net sales and adjusted net sales increased between 2021 and 2024. Net sales grew from US$34,392 million to US$38,498 million, representing a cumulative increase of approximately 11.9%. Adjusted net sales experienced a similar increase, moving from US$34,591 million to US$38,524 million, a cumulative increase of roughly 11.1%. However, 2025 saw a decline in both metrics; net sales decreased to US$37,442 million and adjusted net sales to US$37,818 million.

Adjustment Impact

The difference between net sales and adjusted net sales varied annually. In 2021, adjusted net sales were US$200 million higher than reported net sales. This difference widened to US$376 million in 2022, then narrowed to US$219 million in 2023. In 2024, the adjustment was US$24 million, and in 2025, adjusted net sales were US$376 million higher than net sales. The fluctuations in the adjustment amount indicate that the nature or magnitude of the items being adjusted changed over time.

Growth Rates

The year-over-year growth rate of net sales was 3.4% in 2022, 3.3% in 2023, and 5.0% in 2024. The growth rate decelerated to -2.7% in 2025. Adjusted net sales growth followed a similar pattern: 3.7% in 2022, 2.2% in 2023, 5.6% in 2024, and 2.1% in 2025. The deceleration in growth during 2025 is evident for both metrics.

The consistent application of adjustments to net sales suggests these adjustments are a recurring feature of the company’s financial reporting. Further investigation into the nature of these adjustments would be necessary to fully understand their impact on the reported financial performance.

Net income attributable to Honeywell demonstrated volatility over the five-year period. Initial values decreased from 2021 to 2022, followed by an increase in 2023 and a slight increase in 2024, before declining significantly in 2025. Adjusted net income exhibited a similar pattern of fluctuation, though the magnitudes of change differed from those observed in reported net income.

Reported Net Income Trend

Reported net income decreased from US$5,542 million in 2021 to US$4,966 million in 2022, representing a decline of approximately 10.3%. A subsequent recovery was noted in 2023, with net income rising to US$5,658 million. This upward trend continued modestly into 2024, reaching US$5,705 million. However, 2025 saw a substantial decrease, with net income falling to US$4,729 million.

Adjusted Net Income Trend

Adjusted net income began at US$6,230 million in 2021, then decreased considerably to US$4,610 million in 2022, a reduction of approximately 26.0%. The value increased to US$4,909 million in 2023, but remained below the 2021 level. A more significant increase occurred in 2024, reaching US$6,034 million. Similar to reported net income, adjusted net income experienced a substantial decline in 2025, falling to US$3,124 million.

Relationship Between Reported and Adjusted Net Income

In each year, adjusted net income differed from reported net income attributable to Honeywell. The difference between the two metrics varied annually. In 2021, adjusted net income exceeded reported net income by US$688 million. This difference narrowed in 2022 to US$356 million, and further to US$749 million in 2023. The gap widened again in 2024 to US$329 million, before becoming US$1,605 million in 2025. The magnitude of the adjustment appears to have a greater impact on the overall net income figure in 2025.

The considerable divergence between reported and adjusted net income suggests the presence of recurring non-cash or unusual items that are being excluded from the adjusted figure. The substantial decline in both metrics during 2025 warrants further investigation to determine the underlying causes and potential implications.