Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
- Analysis of Debt
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Liquidity Ratios (Summary)
Honeywell International Inc., liquidity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Current ratio | ||||||
| Quick ratio | ||||||
| Cash ratio |
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 liquidity position, as indicated by the presented ratios, exhibits varied trends over the five-year period. Generally, the company maintains adequate, though modestly decreasing, short-term solvency. The current ratio suggests a consistent ability to cover short-term liabilities with short-term assets, while the quick and cash ratios reveal a more conservative liquidity picture.
- Current Ratio
- The current ratio experienced a slight decline from 1.30 in 2021 to 1.25 in 2022. It then showed a modest recovery to 1.27 in 2023, followed by a further increase to 1.31 in 2024, before stabilizing at 1.30 in 2025. This indicates a relatively stable, but not significantly improving, ability to meet short-term obligations with current assets.
- Quick Ratio
- A consistent downward trend is observed in the quick ratio from 0.94 in 2021 to a low of 0.84 in 2023. The ratio stabilized at 0.88 in both 2024 and 2025. This suggests a decreasing ability to meet short-term liabilities with the most liquid assets, excluding inventory. The stabilization in the most recent years may indicate a leveling off of this decline.
- Cash Ratio
- The cash ratio demonstrates a decline from 0.59 in 2021 to 0.44 in 2023, indicating a reduced capacity to cover immediate liabilities with cash and cash equivalents. A slight recovery is then noted, with the ratio increasing to 0.52 in 2024 and 0.55 in 2025. This suggests a modest improvement in the company’s most conservative liquidity measure in the latter part of the period.
Overall, while the current ratio remains above one, indicating sufficient current assets to cover current liabilities, the declining trends in the quick and cash ratios warrant monitoring. The recent stabilization of these ratios in 2024 and 2025 is a positive sign, but continued observation is recommended to assess the sustainability of this trend.
Current Ratio
Honeywell International Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Current ratio1 | ||||||
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Current Ratio, Sector | ||||||
| Capital Goods | ||||||
| Current Ratio, Industry | ||||||
| Industrials | ||||||
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).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The current ratio exhibited a generally stable pattern over the five-year period, fluctuating within a narrow range. Initial observation reveals a slight decrease followed by modest increases and stabilization.
- Current Ratio Trend
- The current ratio began at 1.30 in 2021. A slight decline was noted in 2022, with the ratio decreasing to 1.25. The ratio experienced a minor recovery in 2023, rising to 1.27. Further improvement occurred in 2024, reaching 1.31, before stabilizing at 1.30 in 2025.
The observed fluctuations suggest a consistent, though not dramatically changing, ability to cover short-term liabilities with short-term assets. The ratio consistently remained above 1.0, indicating that, throughout the period, the entity possessed more current assets than current liabilities.
- Relationship between Current Assets and Liabilities
- Current assets decreased from US$25,372 million in 2021 to US$23,502 million in 2023, before increasing to US$30,387 million in 2025. Current liabilities followed a similar pattern, decreasing from US$19,508 million in 2021 to US$18,539 million in 2023, and then increasing to US$23,414 million in 2025. The relatively proportional changes in both current assets and current liabilities contributed to the stability of the current ratio.
The modest increase in the current ratio in the later years of the period may indicate improved liquidity management or a strategic shift in asset allocation. However, the changes are not substantial enough to suggest a significant alteration in the entity’s short-term financial position.
Quick Ratio
Honeywell International Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Short-term investments | ||||||
| Accounts receivable, less allowances | ||||||
| Total quick assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Quick ratio1 | ||||||
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Quick Ratio, Sector | ||||||
| Capital Goods | ||||||
| Quick Ratio, Industry | ||||||
| Industrials | ||||||
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).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The quick ratio exhibited a fluctuating pattern over the five-year period. Initial values demonstrated a moderate ability to meet short-term obligations with highly liquid assets, but this ability experienced some erosion before stabilizing.
- Overall Trend
- The quick ratio decreased from 0.94 in 2021 to 0.84 in 2023, indicating a weakening in the company’s ability to cover its current liabilities with quick assets. However, the ratio then stabilized at 0.88 for both 2024 and 2025, suggesting a potential leveling off of this trend.
- Quick Asset Movement
- Total quick assets decreased from US$18,353 million in 2021 to US$15,625 million in 2023. A subsequent increase was observed, reaching US$18,772 million in 2024 and further growing to US$20,551 million in 2025. This suggests a recovery and expansion of readily convertible assets in the later years of the period.
- Current Liability Movement
- Current liabilities generally increased throughout the period, moving from US$19,508 million in 2021 to US$23,414 million in 2025. The increase was not linear, with a slight decrease observed between 2022 and 2023, but the overall trend indicates a growing level of short-term obligations.
- Ratio Dynamics
- The initial decline in the quick ratio was likely driven by a combination of decreasing quick assets and increasing current liabilities. The stabilization in 2024 and 2025 appears to be a result of quick assets growing at a rate sufficient to offset the continued increase in current liabilities. Despite the stabilization, the ratio remains below one, indicating that the company does not consistently hold enough quick assets to fully cover its immediate liabilities.
The observed trends suggest a period of initial liquidity pressure followed by a stabilization, though the company’s ability to comfortably meet short-term obligations remains limited.
Cash Ratio
Honeywell International Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Short-term investments | ||||||
| Total cash assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Cash ratio1 | ||||||
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Cash Ratio, Sector | ||||||
| Capital Goods | ||||||
| Cash Ratio, Industry | ||||||
| Industrials | ||||||
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).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The cash ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased before stabilizing and showing a slight upward trend in the later years. This indicates a changing ability to cover immediate liabilities with available cash.
- Cash Ratio Trend
- The cash ratio began at 0.59 in 2021, representing the proportion of current liabilities covered by total cash assets. A decline was observed in 2022 to 0.51, and continued downward in 2023, reaching 0.44. This suggests a weakening in the company’s most liquid position to meet short-term obligations during this period.
- However, the ratio experienced an increase to 0.52 in 2024, and further improved to 0.55 in 2025. This indicates a strengthening of the company’s immediate liquidity position in the latter part of the analyzed period.
- Total Cash Assets
- Total cash assets decreased from US$11,523 million in 2021 to US$10,110 million in 2022, and further to US$8,095 million in 2023. This decline likely contributed to the initial decrease in the cash ratio.
- A subsequent increase was noted in 2024, with cash assets rising to US$10,953 million, and continuing to US$12,930 million in 2025. This recovery in cash holdings supported the stabilization and eventual improvement of the cash ratio.
- Current Liabilities
- Current liabilities remained relatively stable between 2021 and 2023, fluctuating between US$18,539 million and US$19,938 million.
- An increase in current liabilities was observed in 2024, reaching US$21,256 million, and continued to rise to US$23,414 million in 2025. Despite this increase, the growth in cash assets in 2024 and 2025 was sufficient to improve the cash ratio.
In summary, while the company experienced a period of declining cash coverage of current liabilities, it demonstrated an ability to recover and strengthen its immediate liquidity position towards the end of the analyzed timeframe, as evidenced by the increasing cash ratio.