Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Honeywell International Inc., solvency ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Honeywell International Inc. debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Honeywell International Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Honeywell International Inc. debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Honeywell International Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Honeywell International Inc. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Honeywell International Inc. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Honeywell International Inc. financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Honeywell International Inc. interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Honeywell International Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity
Honeywell International Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Commercial paper and other short-term borrowings | 2,085) | 2,717) | 3,542) | 3,597) | 3,516) | |
| Current maturities of long-term debt | 1,796) | 1,730) | 1,803) | 2,445) | 1,376) | |
| Long-term debt, excluding current maturities | 16,562) | 15,123) | 14,254) | 16,342) | 11,110) | |
| Total debt | 20,443) | 19,570) | 19,599) | 22,384) | 16,002) | |
| Total Honeywell shareowners’ equity | 15,856) | 16,697) | 18,569) | 17,549) | 18,494) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.29 | 1.17 | 1.06 | 1.28 | 0.87 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 1.94 | 2.33 | 2.29 | 2.42 | 2.58 | |
| Cummins Inc. | 0.76 | 0.88 | 0.49 | 0.52 | 0.32 | |
| Eaton Corp. plc | 0.49 | 0.51 | 0.52 | 0.54 | 0.52 | |
| General Electric Co. | 0.77 | 0.89 | 0.87 | 2.11 | 3.21 | |
| Lockheed Martin Corp. | 2.55 | 1.68 | 1.07 | 2.02 | 4.05 | |
| RTX Corp. | 0.73 | 0.44 | 0.43 | 0.44 | 1.04 | |
| Debt to Equity, Sector | ||||||
| Capital Goods | 1.49 | 1.30 | 1.22 | 1.68 | 1.97 | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.40 | 1.30 | 1.22 | 1.68 | 1.79 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity = Total debt ÷ Total Honeywell shareowners’ equity
= 20,443 ÷ 15,856 = 1.29
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Honeywell International Inc. debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
Honeywell International Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Commercial paper and other short-term borrowings | 2,085) | 2,717) | 3,542) | 3,597) | 3,516) | |
| Current maturities of long-term debt | 1,796) | 1,730) | 1,803) | 2,445) | 1,376) | |
| Long-term debt, excluding current maturities | 16,562) | 15,123) | 14,254) | 16,342) | 11,110) | |
| Total debt | 20,443) | 19,570) | 19,599) | 22,384) | 16,002) | |
| Current operating lease liabilities | 196) | 192) | 185) | 187) | 171) | |
| Non-current operating lease liabilities | 897) | 775) | 847) | 641) | 534) | |
| Total debt (including operating lease liability) | 21,536) | 20,537) | 20,631) | 23,212) | 16,707) | |
| Total Honeywell shareowners’ equity | 15,856) | 16,697) | 18,569) | 17,549) | 18,494) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.36 | 1.23 | 1.11 | 1.32 | 0.90 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 1.97 | 2.37 | 2.33 | 2.46 | 2.62 | |
| Cummins Inc. | 0.81 | 0.93 | 0.54 | 0.57 | 0.38 | |
| Eaton Corp. plc | 0.52 | 0.54 | 0.55 | 0.57 | 0.55 | |
| General Electric Co. | 0.84 | 0.96 | 0.94 | 2.20 | 3.32 | |
| Lockheed Martin Corp. | 2.73 | 1.81 | 1.19 | 2.21 | 4.40 | |
| RTX Corp. | 0.76 | 0.47 | 0.46 | 0.47 | 1.11 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 1.56 | 1.36 | 1.28 | 1.75 | 2.06 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.57 | 1.45 | 1.36 | 1.83 | 1.89 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Honeywell shareowners’ equity
= 21,536 ÷ 15,856 = 1.36
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Honeywell International Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
Honeywell International Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Commercial paper and other short-term borrowings | 2,085) | 2,717) | 3,542) | 3,597) | 3,516) | |
| Current maturities of long-term debt | 1,796) | 1,730) | 1,803) | 2,445) | 1,376) | |
| Long-term debt, excluding current maturities | 16,562) | 15,123) | 14,254) | 16,342) | 11,110) | |
| Total debt | 20,443) | 19,570) | 19,599) | 22,384) | 16,002) | |
| Total Honeywell shareowners’ equity | 15,856) | 16,697) | 18,569) | 17,549) | 18,494) | |
| Total capital | 36,299) | 36,267) | 38,168) | 39,933) | 34,496) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.56 | 0.54 | 0.51 | 0.56 | 0.46 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Boeing Co. | 1.49 | 1.39 | 1.35 | 1.40 | 1.46 | |
| Caterpillar Inc. | 0.66 | 0.70 | 0.70 | 0.71 | 0.72 | |
| Cummins Inc. | 0.43 | 0.47 | 0.33 | 0.34 | 0.24 | |
| Eaton Corp. plc | 0.33 | 0.34 | 0.34 | 0.35 | 0.34 | |
| General Electric Co. | 0.43 | 0.47 | 0.47 | 0.68 | 0.76 | |
| Lockheed Martin Corp. | 0.72 | 0.63 | 0.52 | 0.67 | 0.80 | |
| RTX Corp. | 0.42 | 0.31 | 0.30 | 0.31 | 0.51 | |
| Debt to Capital, Sector | ||||||
| Capital Goods | 0.60 | 0.57 | 0.55 | 0.63 | 0.66 | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.58 | 0.57 | 0.55 | 0.63 | 0.64 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 20,443 ÷ 36,299 = 0.56
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Honeywell International Inc. debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Honeywell International Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Commercial paper and other short-term borrowings | 2,085) | 2,717) | 3,542) | 3,597) | 3,516) | |
| Current maturities of long-term debt | 1,796) | 1,730) | 1,803) | 2,445) | 1,376) | |
| Long-term debt, excluding current maturities | 16,562) | 15,123) | 14,254) | 16,342) | 11,110) | |
| Total debt | 20,443) | 19,570) | 19,599) | 22,384) | 16,002) | |
| Current operating lease liabilities | 196) | 192) | 185) | 187) | 171) | |
| Non-current operating lease liabilities | 897) | 775) | 847) | 641) | 534) | |
| Total debt (including operating lease liability) | 21,536) | 20,537) | 20,631) | 23,212) | 16,707) | |
| Total Honeywell shareowners’ equity | 15,856) | 16,697) | 18,569) | 17,549) | 18,494) | |
| Total capital (including operating lease liability) | 37,392) | 37,234) | 39,200) | 40,761) | 35,201) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.58 | 0.55 | 0.53 | 0.57 | 0.47 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 1.47 | 1.37 | 1.34 | 1.39 | 1.43 | |
| Caterpillar Inc. | 0.66 | 0.70 | 0.70 | 0.71 | 0.72 | |
| Cummins Inc. | 0.45 | 0.48 | 0.35 | 0.36 | 0.28 | |
| Eaton Corp. plc | 0.34 | 0.35 | 0.36 | 0.36 | 0.35 | |
| General Electric Co. | 0.46 | 0.49 | 0.49 | 0.69 | 0.77 | |
| Lockheed Martin Corp. | 0.73 | 0.64 | 0.54 | 0.69 | 0.81 | |
| RTX Corp. | 0.43 | 0.32 | 0.31 | 0.32 | 0.53 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.61 | 0.58 | 0.56 | 0.64 | 0.67 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.61 | 0.59 | 0.58 | 0.65 | 0.65 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 21,536 ÷ 37,392 = 0.58
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Honeywell International Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
Honeywell International Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Commercial paper and other short-term borrowings | 2,085) | 2,717) | 3,542) | 3,597) | 3,516) | |
| Current maturities of long-term debt | 1,796) | 1,730) | 1,803) | 2,445) | 1,376) | |
| Long-term debt, excluding current maturities | 16,562) | 15,123) | 14,254) | 16,342) | 11,110) | |
| Total debt | 20,443) | 19,570) | 19,599) | 22,384) | 16,002) | |
| Total assets | 61,525) | 62,275) | 64,470) | 64,586) | 58,679) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.33 | 0.31 | 0.30 | 0.35 | 0.27 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Boeing Co. | 0.38 | 0.42 | 0.42 | 0.42 | 0.20 | |
| Caterpillar Inc. | 0.43 | 0.45 | 0.46 | 0.47 | 0.48 | |
| Cummins Inc. | 0.21 | 0.26 | 0.18 | 0.18 | 0.12 | |
| Eaton Corp. plc | 0.24 | 0.25 | 0.25 | 0.25 | 0.25 | |
| General Electric Co. | 0.13 | 0.17 | 0.18 | 0.30 | 0.34 | |
| Lockheed Martin Corp. | 0.33 | 0.29 | 0.23 | 0.24 | 0.27 | |
| RTX Corp. | 0.27 | 0.20 | 0.20 | 0.20 | 0.31 | |
| Debt to Assets, Sector | ||||||
| Capital Goods | 0.28 | 0.28 | 0.27 | 0.31 | 0.31 | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.29 | 0.29 | 0.29 | 0.32 | 0.32 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 20,443 ÷ 61,525 = 0.33
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Honeywell International Inc. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Honeywell International Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Commercial paper and other short-term borrowings | 2,085) | 2,717) | 3,542) | 3,597) | 3,516) | |
| Current maturities of long-term debt | 1,796) | 1,730) | 1,803) | 2,445) | 1,376) | |
| Long-term debt, excluding current maturities | 16,562) | 15,123) | 14,254) | 16,342) | 11,110) | |
| Total debt | 20,443) | 19,570) | 19,599) | 22,384) | 16,002) | |
| Current operating lease liabilities | 196) | 192) | 185) | 187) | 171) | |
| Non-current operating lease liabilities | 897) | 775) | 847) | 641) | 534) | |
| Total debt (including operating lease liability) | 21,536) | 20,537) | 20,631) | 23,212) | 16,707) | |
| Total assets | 61,525) | 62,275) | 64,470) | 64,586) | 58,679) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.35 | 0.33 | 0.32 | 0.36 | 0.28 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 0.40 | 0.43 | 0.43 | 0.43 | 0.21 | |
| Caterpillar Inc. | 0.44 | 0.46 | 0.46 | 0.48 | 0.49 | |
| Cummins Inc. | 0.23 | 0.28 | 0.19 | 0.20 | 0.15 | |
| Eaton Corp. plc | 0.26 | 0.26 | 0.27 | 0.27 | 0.27 | |
| General Electric Co. | 0.14 | 0.19 | 0.19 | 0.31 | 0.35 | |
| Lockheed Martin Corp. | 0.36 | 0.32 | 0.26 | 0.26 | 0.29 | |
| RTX Corp. | 0.28 | 0.21 | 0.21 | 0.21 | 0.33 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.30 | 0.29 | 0.29 | 0.32 | 0.32 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.33 | 0.33 | 0.32 | 0.35 | 0.34 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 21,536 ÷ 61,525 = 0.35
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Honeywell International Inc. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Honeywell International Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 61,525) | 62,275) | 64,470) | 64,586) | 58,679) | |
| Total Honeywell shareowners’ equity | 15,856) | 16,697) | 18,569) | 17,549) | 18,494) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 3.88 | 3.73 | 3.47 | 3.68 | 3.17 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 4.49 | 5.16 | 5.02 | 5.11 | 5.38 | |
| Cummins Inc. | 3.62 | 3.38 | 2.80 | 2.81 | 2.63 | |
| Eaton Corp. plc | 2.02 | 2.06 | 2.07 | 2.13 | 2.04 | |
| General Electric Co. | 5.96 | 5.16 | 4.93 | 7.13 | 9.40 | |
| Lockheed Martin Corp. | 7.67 | 5.71 | 4.64 | 8.43 | 15.20 | |
| RTX Corp. | 2.71 | 2.19 | 2.21 | 2.25 | 3.34 | |
| Financial Leverage, Sector | ||||||
| Capital Goods | 5.24 | 4.64 | 4.46 | 5.39 | 6.40 | |
| Financial Leverage, Industry | ||||||
| Industrials | 4.76 | 4.44 | 4.27 | 5.25 | 5.63 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Financial leverage = Total assets ÷ Total Honeywell shareowners’ equity
= 61,525 ÷ 15,856 = 3.88
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Honeywell International Inc. financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
Honeywell International Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Honeywell | 5,658) | 4,966) | 5,542) | 4,779) | 6,143) | |
| Add: Net income attributable to noncontrolling interest | 14) | 1) | 68) | 86) | 87) | |
| Add: Income tax expense | 1,487) | 1,412) | 1,625) | 1,147) | 1,329) | |
| Add: Interest and other financial charges | 765) | 414) | 343) | 359) | 357) | |
| Earnings before interest and tax (EBIT) | 7,924) | 6,793) | 7,578) | 6,371) | 7,916) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 10.36 | 16.41 | 22.09 | 17.75 | 22.17 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Boeing Co. | 0.18 | -0.98 | -0.88 | -5.71 | -2.19 | |
| Caterpillar Inc. | 26.66 | 20.80 | 17.88 | 8.80 | 19.62 | |
| Cummins Inc. | 5.34 | 15.17 | 25.78 | 24.38 | 27.00 | |
| Eaton Corp. plc | 26.34 | 21.22 | 21.11 | 12.72 | 11.98 | |
| General Electric Co. | 10.12 | 1.88 | -0.96 | 2.59 | 1.27 | |
| Lockheed Martin Corp. | 9.84 | 11.72 | 14.27 | 14.93 | 12.09 | |
| RTX Corp. | 3.32 | 5.64 | 4.71 | -0.65 | 5.65 | |
| Interest Coverage, Sector | ||||||
| Capital Goods | 6.77 | 5.13 | 4.30 | 2.25 | 5.14 | |
| Interest Coverage, Industry | ||||||
| Industrials | 7.17 | 5.71 | 6.21 | 2.23 | 4.59 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 7,924 ÷ 765 = 10.36
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Honeywell International Inc. interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Fixed Charge Coverage
Honeywell International Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Honeywell | 5,658) | 4,966) | 5,542) | 4,779) | 6,143) | |
| Add: Net income attributable to noncontrolling interest | 14) | 1) | 68) | 86) | 87) | |
| Add: Income tax expense | 1,487) | 1,412) | 1,625) | 1,147) | 1,329) | |
| Add: Interest and other financial charges | 765) | 414) | 343) | 359) | 357) | |
| Earnings before interest and tax (EBIT) | 7,924) | 6,793) | 7,578) | 6,371) | 7,916) | |
| Add: Operating lease cost | 239) | 224) | 228) | 214) | 222) | |
| Earnings before fixed charges and tax | 8,163) | 7,017) | 7,806) | 6,585) | 8,138) | |
| Interest and other financial charges | 765) | 414) | 343) | 359) | 357) | |
| Operating lease cost | 239) | 224) | 228) | 214) | 222) | |
| Fixed charges | 1,004) | 638) | 571) | 573) | 579) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 8.13 | 11.00 | 13.67 | 11.49 | 14.06 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Boeing Co. | 0.31 | -0.70 | -0.64 | -4.75 | -1.19 | |
| Caterpillar Inc. | 19.73 | 14.92 | 12.73 | 6.58 | 13.01 | |
| Cummins Inc. | 4.01 | 8.85 | 10.72 | 9.60 | 9.94 | |
| Eaton Corp. plc | 11.90 | 10.01 | 10.40 | 6.24 | 7.45 | |
| General Electric Co. | 5.25 | 1.35 | -0.22 | 1.93 | 1.09 | |
| Lockheed Martin Corp. | 7.81 | 8.44 | 9.95 | 11.12 | 9.12 | |
| RTX Corp. | 2.81 | 4.40 | 3.66 | -0.22 | 4.31 | |
| Fixed Charge Coverage, Sector | ||||||
| Capital Goods | 5.09 | 3.79 | 3.26 | 1.84 | 3.80 | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 4.60 | 3.68 | 4.04 | 1.71 | 3.07 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 8,163 ÷ 1,004 = 8.13
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Honeywell International Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |