Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Price to Sales (P/S) since 2005
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Liquidity Ratios (Summary)
Honeywell International Inc., liquidity ratios (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).
- Current Ratio Trends
- The current ratio shows moderate fluctuations over the reported quarters. Starting at 1.3 in the first quarter of 2020, it increased to a peak around mid-2020 at 1.64, demonstrating improved short-term liquidity. Subsequently, the ratio declined gradually through 2021, reaching lower values near 1.2 by mid-2022. From late 2022 onwards, the ratio exhibited some volatility, rising to around 1.41 in mid-2023 before declining again. The most recent data points in 2024 and early 2025 reveal fluctuations between approximately 1.2 and 1.66, indicating variable but generally stable liquidity levels over time.
- Quick Ratio Analysis
- The quick ratio exhibits a pattern similar to the current ratio but with slightly more pronounced decreases. Initially starting near 0.93 in early 2020, it increased to about 1.27 by the third quarter of 2020, reflecting strengthened immediate liquidity excluding inventory. However, from 2021 through mid-2022, the quick ratio trended downward, falling below 0.85. This suggests a declining ability to cover short-term obligations with the most liquid assets. Although there was some recovery in mid to late 2023 with values approaching 0.98, the ratio again showed downward movement in 2024, ending near 0.83 to 0.9. Overall, this ratio indicates periods of reduced liquidity relative to current liabilities excluding inventory.
- Cash Ratio Patterns
- The cash ratio demonstrates more volatility and consistently lower levels compared to the current and quick ratios. Starting at 0.51 in the first quarter of 2020, it increased sharply to 0.87 in mid-2020, indicating a temporary boost in highly liquid cash and cash equivalents coverage. Post-2020, the ratio declined steadily through 2022, reaching lows in the range of approximately 0.4 to 0.5. Despite some brief improvements observed in specific quarters (e.g., late 2022 and mid-2023), the general trend remains downward or fluctuating at relatively low levels. In 2024 and early 2025, the cash ratio hovers mostly between 0.46 and 0.73, suggesting limited immediate cash coverage of current liabilities and potentially tighter cash management.
- Overall Liquidity Insights
- The liquidity indicators collectively suggest that while the company maintains adequate current assets relative to current liabilities, there are noticeable declines in the most liquid asset ratios (quick and cash ratios) post the initial periods of 2020. The fluctuations in all three ratios imply changing operational or financial conditions affecting short-term asset liquidity. The consistently lower cash ratio compared to current and quick ratios points to a reliance on receivables and inventory to maintain liquidity rather than cash reserves alone. Variability in 2023 and 2024 reflects ongoing adjustments, possibly related to working capital management or broader market conditions impacting liquidity dynamics.
Current Ratio
Honeywell International Inc., current ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||||||||||
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).
1 Q2 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibited fluctuations throughout the reported periods. Initially, there was a notable increase from March 31, 2020 (22,613 million USD) to June 30, 2020 (28,321 million USD), followed by a slight decline by the end of 2020. In 2021, the values remained relatively stable, fluctuating between approximately 25,300 and 26,000 million USD. During 2022, current assets decreased in the first three quarters but experienced an uptick in the final quarter. The year 2023 showed some volatility, with assets falling in the first quarter, rising mid-year, and then dipping again by the end of the year. The data for 2024 reveals an upward trend in the first quarter, followed by some variability, while 2025 maintains a more stable level, hovering around 27,600 to 27,900 million USD.
- Current Liabilities
- Current liabilities remained relatively steady from March 31, 2020 (17,377 million USD) through September 30, 2020. However, there was an increase toward the end of 2020 and early 2021, peaking at over 20,000 million USD during the second half of 2021. Throughout 2022, liabilities showed a slight decline in early periods but rose again by the year's end. The 2023 data depict a downward trend initially, stabilizing mid-year, then increasing in the final quarter. In 2024, liabilities climbed sharply in the second quarter reaching over 21,000 million USD, maintaining elevated levels subsequently. The figures for 2025 indicate a continued high level of current liabilities, fluctuating just above 21,000 million USD.
- Current Ratio
- The current ratio illustrates a general pattern of contraction following an initial peak in mid-2020. Starting at 1.3 in March 2020, it rose to approximately 1.64 by September 2020 but declined slightly as 2020 progressed. Throughout 2021, the ratio declined to around 1.29-1.3, indicating a slight decrease in short-term liquidity relative to the previous year. In 2022, the ratio remained relatively stable in the low 1.2 range, with a minor improvement by the end of the year. The ratio improved modestly during 2023, peaking at 1.41 mid-year, but decreased again towards the end of the year and into early 2024. The second quarter of 2024 saw a peak ratio of 1.66, suggesting improved liquidity, before declining in successive quarters. The early 2025 ratio remains stable at approximately 1.25-1.29, signifying consistent short-term financial positioning.
Quick Ratio
Honeywell International Inc., quick ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||||||||||
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).
1 Q2 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total quick assets
- The total quick assets demonstrate a fluctuating trend over the observed periods. Initially, there is a significant increase from approximately 16,243 million USD in March 2020 to a peak near 21,886 million USD in September 2020. Following this peak, a gradual decline occurs through December 2021, reaching lows around 15,328 million USD by September 2022. Subsequently, values show some recovery and volatility with an overall upward movement toward 19,500 million USD by June 2025. This suggests volatility in the company's liquid asset base over the five-year span, with intermittent periods of growth and decline.
- Current liabilities
- Current liabilities exhibit a mostly increasing trend across the periods. Starting near 17,377 million USD in March 2020, the liabilities fluctuate slightly but generally grow, reaching over 22,000 million USD by June 2025. Notable increases occur between June 2023 and June 2025, indicating rising short-term financial obligations. This trend reflects growing current liabilities that may impact liquidity, especially when juxtaposed with the trends in quick assets.
- Quick ratio
- The quick ratio, a key liquidity metric, varies throughout the time frame, indicating varying short-term financial stability. It begins below 1 at 0.93 in March 2020, peaks above 1.2 in mid-2020, then declines below 1 from late 2020 through most of 2023, reaching lows around 0.82 to 0.85 in 2022. Sporadic improvements occur, such as in June 2023 and March 2024 when the ratio slightly exceeds 1. Despite these intermittent recoveries, the ratio predominantly remains below 1, suggesting that quick assets are generally insufficient to cover current liabilities promptly. The periods where the quick ratio is under 1 align with the increases in current liabilities and decreases in quick assets, indicating potential liquidity pressures.
- Overall analysis
- The data reflects periods of both strength and stress in short-term liquidity. The initial phase in 2020 shows strengthening liquidity ratios supported by rising quick assets and stable current liabilities. Thereafter, the company faces liquidity challenges as quick assets fall and liabilities rise, with the quick ratio persistently under 1 for several consecutive quarters. Although some recovery attempts are evident in 2023 and early 2024, the quick ratio’s inability to sustainably rise above 1 implies ongoing caution is warranted. The gradual increase in current liabilities towards the later periods may warrant monitoring to ensure that liquidity remains adequate to meet short-term obligations.
Cash Ratio
Honeywell International Inc., cash ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||||||||||
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).
1 Q2 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets showed a significant increase from March 2020 through June 2020, rising from approximately 8.8 billion USD to over 15 billion USD. This elevated level remained relatively stable through the end of 2020. However, starting in early 2021, a gradual decline is evident, reaching a low point near 7.2 billion USD in March 2023. Following this, cash assets fluctuated with some recovery periods, most notably in the first quarter of 2024 where it increased to around 12 billion USD. The subsequent quarters exhibited volatility but maintained levels generally in the range of 9 to 11 billion USD through the middle of 2025.
- Current Liabilities
- Current liabilities remained relatively high throughout the entire period, fluctuating mostly between 17 billion USD and 22 billion USD. The data indicates a peak in liabilities around June 2025 at approximately 21.6 billion USD. There was an observable increase in liabilities during the second half of 2021 and again from mid-2023 onwards. The period from March 2022 to late 2022 saw some reduction in liabilities, indicating a temporary easing. Overall, current liabilities have demonstrated persistent elevated levels, with a tendency to increase towards the later periods.
- Cash Ratio
- The cash ratio, reflecting the company's liquidity in terms of cash assets relative to current liabilities, began at a moderate level of 0.51 in March 2020 and rose to a peak of 0.87 by June and September 2020. This suggests an improvement in liquidity during the early pandemic period. Following this peak, the ratio showed a downward trend, reaching around 0.40 in March 2023. Post-March 2023, the ratio displayed some recovery spikes, especially notable in June 2023 (0.51) and March 2024 (0.73), indicating intermittent improvements in short-term liquidity. However, these recoveries were short-lived as the ratio generally hovered between 0.4 and 0.56 for the remaining periods, reflecting moderate liquidity concerns relative to the high levels of current liabilities. The overall trend indicates fluctuating but generally constrained cash liquidity in relation to short-term obligations.