Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Honeywell International Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Accounts payable	6,315)	6,880)	6,849)	6,329)	6,484)
Commercial paper and other short-term borrowings	5,893)	4,273)	2,085)	2,717)	3,542)
Current maturities of long-term debt	1,546)	1,347)	1,796)	1,730)	1,803)
Customer advances and deferred income	3,860)	3,506)	3,499)	3,555)	3,163)
Compensation, benefit and other employee related	1,401)	1,366)	1,322)	1,218)	1,273)
Income taxes	791)	961)	680)	549)	393)
Accrued interest	384)	379)	217)	122)	100)
Other taxes	215)	292)	176)	174)	269)
Product warranties and performance guarantees	180)	202)	182)	175)	180)
Environmental costs	180)	244)	227)	222)	225)
Derivative liabilities	178)	—)	—)	—)	—)
Current operating lease liabilities	174)	199)	196)	192)	185)
Repositioning	172)	185)	279)	309)	411)
Insurance	45)	60)	69)	68)	101)
Asbestos-related liabilities	—)	157)	154)	110)	261)
NARCO Buyout accrual	—)	—)	—)	1,325)	—)
Other, primarily operating expenses	882)	797)	808)	1,143)	1,118)
Accrued liabilities	8,462)	8,348)	7,809)	9,162)	7,679)
Liabilities held for sale	1,198)	408)	—)	—)	—)
Current liabilities	23,414)	21,256)	18,539)	19,938)	19,508)
Long-term debt, excluding current maturities	27,141)	25,479)	16,562)	15,123)	14,254)
Deferred income taxes	1,577)	1,787)	2,094)	2,093)	2,364)
Postretirement benefit obligations other than pensions	111)	112)	134)	146)	208)
Asbestos-related liabilities	—)	1,325)	1,490)	1,180)	1,800)
Income taxes	1,518)	1,433)	1,742)	1,939)	2,152)
Pension and other employee related	1,147)	1,261)	1,342)	1,306)	1,672)
Deferred income	1,111)	1,190)	1,171)	1,334)	1,324)
Non-current operating lease liabilities	809)	927)	897)	775)	847)
Derivative liabilities	716)	—)	—)	—)	—)
Environmental costs	714)	434)	414)	393)	393)
Insurance	210)	244)	248)	289)	299)
Product warranties and performance guarantees	40)	35)	37)	38)	43)
Asset retirement obligations	18)	16)	17)	24)	26)
Other	125)	536)	397)	371)	331)
Other liabilities	6,408)	6,076)	6,265)	6,469)	7,087)
Non-current liabilities	35,237)	34,779)	26,545)	25,011)	25,713)
Total liabilities	58,651)	56,035)	45,084)	44,949)	45,221)
Redeemable noncontrolling interest	—)	7)	7)	7)	7)
Common stock issued	958)	958)	958)	958)	958)
Additional paid-in capital	10,157)	9,695)	9,062)	8,564)	8,141)
Common stock held in treasury, at cost	(43,029)	(39,378)	(38,008)	(34,443)	(30,462)
Accumulated other comprehensive loss	(5,146)	(3,491)	(4,135)	(3,475)	(2,895)
Retained earnings	50,964)	50,835)	47,979)	45,093)	42,827)
Total Honeywell shareowners’ equity	13,904)	18,619)	15,856)	16,697)	18,569)
Noncontrolling interest	1,126)	535)	578)	622)	673)
Total shareowners’ equity	15,030)	19,154)	16,434)	17,319)	19,242)
Total liabilities, redeemable noncontrolling interest and shareowners’ equity	73,681)	75,196)	61,525)	62,275)	64,470)

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).

Overall, the liabilities of the company demonstrate a generally increasing trend from 2021 to 2025, with a significant jump between 2023 and 2024. Shareowners’ equity, conversely, exhibits more volatility, decreasing over the period, particularly in the later years. This suggests a growing reliance on debt financing and potentially decreasing retained earnings or shareholder returns.

Current Liabilities: Current liabilities increased substantially from US$19,508 million in 2021 to US$23,414 million in 2025. This growth was not linear, with a decrease observed between 2021 and 2023 before a marked increase in 2024 and 2025. Accounts payable remained relatively stable, fluctuating between US$6,329 million and US$6,880 million. However, commercial paper and other short-term borrowings experienced significant volatility, rising from US$2,717 million in 2022 to US$5,893 million in 2025. A notable increase in liabilities held for sale is observed in 2024 and 2025, reaching US$1,198 million. Accrued liabilities also increased over the period, though with some fluctuation.
Non-Current Liabilities: Non-current liabilities also showed an increasing trend, rising from US$25,713 million in 2021 to US$35,237 million in 2025. Long-term debt, excluding current maturities, contributed significantly to this increase, nearly doubling from US$14,254 million to US$27,141 million. Deferred income taxes decreased over the period, while other liabilities remained relatively stable. Environmental costs and derivative liabilities saw increases towards the end of the period.
Total Liabilities: Total liabilities increased from US$45,221 million in 2021 to US$58,651 million in 2025. The most substantial increase occurred between 2023 and 2024, jumping from US$45,084 million to US$56,035 million. This increase is attributable to both current and non-current liability components.
Shareowners’ Equity: Total shareowners’ equity decreased from US$19,242 million in 2021 to US$15,030 million in 2025. Common stock issued remained constant, while additional paid-in capital increased over the period. However, this was offset by a substantial increase in treasury stock, which moved from -US$30,462 million to -US$43,029 million, and an increase in accumulated other comprehensive loss. Retained earnings showed an initial increase, peaking in 2023, but then decreased slightly in 2024 and 2025. The redeemable noncontrolling interest remained relatively stable.
Specific Liability Items: Several specific liability items exhibited notable changes. Income taxes payable increased significantly between 2021 and 2024, before decreasing in 2025. Accrued interest also increased substantially over the period. The NARCO Buyout accrual appeared in 2022 and then disappeared. Asbestos-related liabilities decreased initially, then increased, and finally showed no value in 2025. Repositioning liabilities decreased steadily throughout the period.

In conclusion, the company experienced a growing debt burden alongside a decrease in shareowners’ equity. This shift in the capital structure warrants further investigation to understand the underlying drivers and potential implications for financial stability and future performance.

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Honeywell International Inc. (NASDAQ:HON)

Balance Sheet: Liabilities and Stockholders’ Equity