Analysis of Solvency Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
The solvency profile demonstrates a consistent increase in financial leverage and a corresponding decline in debt-servicing capacity from the first quarter of 2022 through the first quarter of 2026, followed by a significant correction in the second quarter of 2026.
- Debt to Equity and Debt to Capital Ratios
- A sustained upward trajectory is observed in the debt-to-equity ratio, which rose from 1.05 in March 2022 to a peak of 2.70 in March 2026. This indicates a substantial shift toward debt financing relative to shareholder equity. Similarly, the debt-to-capital ratio climbed steadily from 0.51 to 0.73 over the same period. Both metrics experienced a notable reduction in June 2026, with the debt-to-equity ratio falling to 1.83 and the debt-to-capital ratio returning to 0.65.
- Debt to Assets and Financial Leverage
- Asset-based solvency weakened progressively as the debt-to-assets ratio grew from 0.31 in March 2022 to a maximum of 0.50 in March 2026. In tandem, financial leverage increased from 3.45 to 5.44, reflecting an elevated risk profile and higher reliance on borrowed funds to support assets. This trend reversed in June 2026, as the debt-to-assets ratio dropped to 0.44 and financial leverage decreased to 4.17.
- Interest Coverage Ratio
- A marked deterioration in the capacity to service interest obligations is evident. The interest coverage ratio fell from a robust 21.35 in March 2022 to a low of 4.32 in March 2026, suggesting that operating earnings became increasingly strained relative to interest expenses. However, a sharp recovery to 8.13 occurred in June 2026, correlating with the overall deleveraging trend observed across all other solvency metrics during that period.
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Debt Ratios
Coverage Ratios
Debt to Equity
Honeywell International Inc., debt to equity calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Commercial paper and other short-term borrowings | 2,478) | 4,630) | 5,893) | 6,873) | 6,271) | 5,756) | 4,273) | 3,135) | 4,548) | 1,819) | 2,085) | 1,933) | 2,828) | 3,555) | 2,717) | 3,434) | 3,487) | 3,526) | ||||||
| Current maturities of long-term debt | 5,282) | 3,099) | 1,546) | 72) | 74) | 1,332) | 1,347) | 1,760) | 2,519) | 1,254) | 1,796) | 1,670) | 945) | 937) | 1,730) | 1,315) | 3,099) | 3,207) | ||||||
| Long-term debt, excluding current maturities | 26,228) | 29,010) | 27,141) | 30,092) | 30,167) | 25,744) | 25,479) | 25,934) | 20,865) | 22,183) | 16,562) | 16,683) | 17,600) | 14,670) | 15,123) | 12,236) | 12,491) | 12,636) | ||||||
| Total debt | 33,988) | 36,739) | 34,580) | 37,037) | 36,512) | 32,832) | 31,099) | 30,829) | 27,932) | 25,256) | 20,443) | 20,286) | 21,373) | 19,162) | 19,570) | 16,985) | 19,077) | 19,369) | ||||||
| Total Honeywell Technologies shareowners’ equity | 18,537) | 13,590) | 13,904) | 16,782) | 16,095) | 17,463) | 18,619) | 17,406) | 16,947) | 16,454) | 15,856) | 17,231) | 17,299) | 16,919) | 16,697) | 17,707) | 17,541) | 18,365) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to equity1 | 1.83 | 2.70 | 2.49 | 2.21 | 2.27 | 1.88 | 1.67 | 1.77 | 1.65 | 1.53 | 1.29 | 1.18 | 1.24 | 1.13 | 1.17 | 0.96 | 1.09 | 1.05 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 7.52 | 7.89 | 9.92 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 2.33 | 2.31 | 2.03 | 2.01 | 2.18 | 2.14 | 1.97 | 1.95 | 2.18 | 2.15 | 1.94 | 1.81 | 2.07 | 2.04 | 2.33 | 2.34 | 2.35 | 2.20 | ||||||
| Eaton Corp. plc | 1.02 | 1.07 | 0.51 | 0.57 | 0.59 | 0.54 | 0.50 | 0.49 | 0.51 | 0.48 | 0.49 | 0.50 | 0.52 | 0.50 | 0.51 | 0.56 | 0.59 | 0.58 | ||||||
| GE Aerospace | 1.09 | 1.12 | 1.10 | 1.11 | 0.99 | 1.02 | 1.00 | 1.06 | 1.06 | 0.69 | 0.77 | 0.73 | 0.70 | 0.71 | 0.89 | 0.97 | 0.94 | 0.86 | ||||||
| Lockheed Martin Corp. | 2.34 | 2.76 | 3.23 | 3.59 | 4.06 | 3.04 | 3.20 | 2.68 | 3.12 | 2.92 | 2.55 | 1.88 | 1.90 | 1.62 | 1.68 | 0.96 | 1.02 | 1.16 | ||||||
| RTX Corp. | 0.56 | 0.56 | 0.58 | 0.61 | 0.67 | 0.67 | 0.69 | 0.69 | 0.71 | 0.71 | 0.73 | 0.51 | 0.49 | 0.47 | 0.44 | 0.48 | 0.45 | 0.43 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Debt to equity = Total debt ÷ Total Honeywell Technologies shareowners’ equity
= 33,988 ÷ 18,537 = 1.83
2 Click competitor name to see calculations.
A prolonged increase in financial leverage is evident between March 2022 and March 2026, marked by a substantial expansion of total debt and intermittent volatility in shareowners' equity. This trajectory indicates a shift toward a more aggressive capital structure over the analyzed period.
- Total Debt Trends
- Debt levels remained relatively stable between 16.9 billion and 19.5 billion USD throughout 2022 and 2023. A period of rapid accumulation began in the first quarter of 2024, with debt rising from 25.2 billion USD in March 2024 to a peak of 37.0 billion USD by September 2025. A subsequent reduction occurred toward the end of 2025 and mid-2026, although levels remained significantly elevated compared to the 2022 baseline.
- Shareowners' Equity Fluctuations
- Equity maintained a range between 15.8 billion and 18.3 billion USD from 2022 through 2024. A notable decline was observed during 2025, with equity reaching a low of 13.5 billion USD by December 2025. This downward movement contributed to the amplification of the solvency ratio. A sharp recovery was recorded in June 2026, with equity returning to 18.5 billion USD.
- Debt to Equity Ratio Analysis
- The debt to equity ratio exhibited a steady increase from 1.05 in March 2022 to 1.29 by December 2023. The ratio accelerated sharply throughout 2024 and 2025, surpassing the 2.0 threshold in June 2025 and reaching a peak of 2.70 in March 2026. This peak represents the highest level of leverage observed. A significant correction occurred in June 2026, where the ratio dropped to 1.83, driven by the simultaneous reduction in total debt and the recovery of shareowners' equity.
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Debt to Capital
Honeywell International Inc., debt to capital calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Commercial paper and other short-term borrowings | 2,478) | 4,630) | 5,893) | 6,873) | 6,271) | 5,756) | 4,273) | 3,135) | 4,548) | 1,819) | 2,085) | 1,933) | 2,828) | 3,555) | 2,717) | 3,434) | 3,487) | 3,526) | ||||||
| Current maturities of long-term debt | 5,282) | 3,099) | 1,546) | 72) | 74) | 1,332) | 1,347) | 1,760) | 2,519) | 1,254) | 1,796) | 1,670) | 945) | 937) | 1,730) | 1,315) | 3,099) | 3,207) | ||||||
| Long-term debt, excluding current maturities | 26,228) | 29,010) | 27,141) | 30,092) | 30,167) | 25,744) | 25,479) | 25,934) | 20,865) | 22,183) | 16,562) | 16,683) | 17,600) | 14,670) | 15,123) | 12,236) | 12,491) | 12,636) | ||||||
| Total debt | 33,988) | 36,739) | 34,580) | 37,037) | 36,512) | 32,832) | 31,099) | 30,829) | 27,932) | 25,256) | 20,443) | 20,286) | 21,373) | 19,162) | 19,570) | 16,985) | 19,077) | 19,369) | ||||||
| Total Honeywell Technologies shareowners’ equity | 18,537) | 13,590) | 13,904) | 16,782) | 16,095) | 17,463) | 18,619) | 17,406) | 16,947) | 16,454) | 15,856) | 17,231) | 17,299) | 16,919) | 16,697) | 17,707) | 17,541) | 18,365) | ||||||
| Total capital | 52,525) | 50,329) | 48,484) | 53,819) | 52,607) | 50,295) | 49,718) | 48,235) | 44,879) | 41,710) | 36,299) | 37,517) | 38,672) | 36,081) | 36,267) | 34,692) | 36,618) | 37,734) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to capital1 | 0.65 | 0.73 | 0.71 | 0.69 | 0.69 | 0.65 | 0.63 | 0.64 | 0.62 | 0.61 | 0.56 | 0.54 | 0.55 | 0.53 | 0.54 | 0.49 | 0.52 | 0.51 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 0.88 | 0.89 | 0.91 | 1.18 | 1.07 | 1.07 | 1.08 | 1.69 | 1.45 | 1.55 | 1.49 | 1.47 | 1.42 | 1.39 | 1.39 | 1.45 | 1.35 | 1.36 | ||||||
| Caterpillar Inc. | 0.70 | 0.70 | 0.67 | 0.67 | 0.69 | 0.68 | 0.66 | 0.66 | 0.69 | 0.68 | 0.66 | 0.64 | 0.67 | 0.67 | 0.70 | 0.70 | 0.70 | 0.69 | ||||||
| Eaton Corp. plc | 0.50 | 0.52 | 0.34 | 0.36 | 0.37 | 0.35 | 0.33 | 0.33 | 0.34 | 0.32 | 0.33 | 0.33 | 0.34 | 0.34 | 0.34 | 0.36 | 0.37 | 0.37 | ||||||
| GE Aerospace | 0.52 | 0.53 | 0.52 | 0.53 | 0.50 | 0.50 | 0.50 | 0.51 | 0.51 | 0.41 | 0.43 | 0.42 | 0.41 | 0.41 | 0.47 | 0.49 | 0.48 | 0.46 | ||||||
| Lockheed Martin Corp. | 0.70 | 0.73 | 0.76 | 0.78 | 0.80 | 0.75 | 0.76 | 0.73 | 0.76 | 0.74 | 0.72 | 0.65 | 0.66 | 0.62 | 0.63 | 0.49 | 0.50 | 0.54 | ||||||
| RTX Corp. | 0.36 | 0.36 | 0.37 | 0.38 | 0.40 | 0.40 | 0.41 | 0.41 | 0.42 | 0.41 | 0.42 | 0.34 | 0.33 | 0.32 | 0.31 | 0.32 | 0.31 | 0.30 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 33,988 ÷ 52,525 = 0.65
2 Click competitor name to see calculations.
An analysis of the solvency metrics reveals a significant shift in the capital structure, characterized by a substantial increase in leverage beginning in the first quarter of 2024. While the company maintained a relatively stable debt profile between March 2022 and December 2023, a subsequent period of aggressive debt accumulation led to a higher reliance on borrowed funds relative to total capital.
- Total Debt Trajectory
- Debt levels remained range-bound between approximately 16.9 billion and 21.3 billion US dollars from March 2022 through December 2023. A sharp upward trend commenced in March 2024, with total debt rising from 25.2 billion US dollars to a peak of 37.0 billion US dollars by June 2025. A moderate reduction is observed in the final quarters, concluding at 33.9 billion US dollars in June 2026.
- Total Capital Expansion
- Total capital exhibited stability during the first two years of the period, fluctuating between 34.6 billion and 38.6 billion US dollars. Starting in March 2024, there was a consistent expansion in the capital base, reaching a high of 53.8 billion US dollars in September 2025. Despite a temporary contraction in December 2025, the capital base recovered to 52.5 billion US dollars by June 2026.
- Debt to Capital Ratio Analysis
- The debt to capital ratio remained conservative, fluctuating between 0.49 and 0.56, during the initial eight quarters. A structural shift occurred in early 2024, as the ratio climbed steadily from 0.61 in March 2024 to a peak of 0.73 by March 2026. This upward trend indicates that debt grew at a faster rate than the overall capital base. A notable correction occurred in the final reported quarter, with the ratio decreasing to 0.65 in June 2026, suggesting a strategic move toward deleveraging.
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Debt to Assets
Honeywell International Inc., debt to assets calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Commercial paper and other short-term borrowings | 2,478) | 4,630) | 5,893) | 6,873) | 6,271) | 5,756) | 4,273) | 3,135) | 4,548) | 1,819) | 2,085) | 1,933) | 2,828) | 3,555) | 2,717) | 3,434) | 3,487) | 3,526) | ||||||
| Current maturities of long-term debt | 5,282) | 3,099) | 1,546) | 72) | 74) | 1,332) | 1,347) | 1,760) | 2,519) | 1,254) | 1,796) | 1,670) | 945) | 937) | 1,730) | 1,315) | 3,099) | 3,207) | ||||||
| Long-term debt, excluding current maturities | 26,228) | 29,010) | 27,141) | 30,092) | 30,167) | 25,744) | 25,479) | 25,934) | 20,865) | 22,183) | 16,562) | 16,683) | 17,600) | 14,670) | 15,123) | 12,236) | 12,491) | 12,636) | ||||||
| Total debt | 33,988) | 36,739) | 34,580) | 37,037) | 36,512) | 32,832) | 31,099) | 30,829) | 27,932) | 25,256) | 20,443) | 20,286) | 21,373) | 19,162) | 19,570) | 16,985) | 19,077) | 19,369) | ||||||
| Total assets | 77,344) | 73,988) | 73,681) | 80,917) | 78,419) | 75,218) | 75,196) | 73,492) | 69,329) | 65,645) | 61,525) | 61,296) | 62,337) | 59,883) | 62,275) | 60,287) | 62,258) | 63,352) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to assets1 | 0.44 | 0.50 | 0.47 | 0.46 | 0.47 | 0.44 | 0.41 | 0.42 | 0.40 | 0.38 | 0.33 | 0.33 | 0.34 | 0.32 | 0.31 | 0.28 | 0.31 | 0.31 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 0.28 | 0.29 | 0.32 | 0.36 | 0.34 | 0.34 | 0.34 | 0.42 | 0.41 | 0.36 | 0.38 | 0.39 | 0.39 | 0.41 | 0.42 | 0.42 | 0.42 | 0.43 | ||||||
| Caterpillar Inc. | 0.44 | 0.45 | 0.44 | 0.44 | 0.45 | 0.45 | 0.44 | 0.44 | 0.45 | 0.45 | 0.43 | 0.43 | 0.44 | 0.44 | 0.45 | 0.45 | 0.46 | 0.46 | ||||||
| Eaton Corp. plc | 0.37 | 0.38 | 0.24 | 0.26 | 0.27 | 0.26 | 0.24 | 0.24 | 0.25 | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | 0.25 | 0.26 | 0.28 | 0.27 | ||||||
| GE Aerospace | 0.15 | 0.16 | 0.16 | 0.16 | 0.15 | 0.16 | 0.16 | 0.16 | 0.16 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.17 | 0.17 | 0.18 | 0.18 | ||||||
| Lockheed Martin Corp. | 0.33 | 0.35 | 0.36 | 0.37 | 0.37 | 0.36 | 0.36 | 0.35 | 0.35 | 0.35 | 0.33 | 0.31 | 0.31 | 0.29 | 0.29 | 0.22 | 0.22 | 0.23 | ||||||
| RTX Corp. | 0.21 | 0.22 | 0.22 | 0.23 | 0.25 | 0.25 | 0.25 | 0.26 | 0.26 | 0.27 | 0.27 | 0.22 | 0.22 | 0.21 | 0.20 | 0.21 | 0.20 | 0.20 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 33,988 ÷ 77,344 = 0.44
2 Click competitor name to see calculations.
The solvency profile of the organization exhibits a marked increase in leverage over the analyzed period, characterized by a steady rise in the debt-to-assets ratio. While the company maintained a relatively stable solvency position through 2022 and 2023, a significant shift toward higher debt utilization occurred beginning in early 2024, peaking in the first quarter of 2026.
- Debt Accumulation Trends
- Total debt remained relatively range-bound between 16.9 billion and 21.3 billion US dollars from March 2022 through December 2023. However, a sharp upward trajectory began in March 2024, where debt rose to 25.2 billion US dollars and continued to climb, reaching a peak of 37.0 billion US dollars by June 2025. Although a slight reduction is observed in late 2025 and mid-2026, the overall debt levels remain substantially higher than the 2022-2023 baseline.
- Asset Growth and Correlation
- Total assets demonstrated a general growth trend, increasing from 63.3 billion US dollars in March 2022 to a peak of 80.9 billion US dollars in June 2025. While assets grew, the pace of expansion was outstripped by the rate of debt acquisition. A notable contraction in total assets occurred between June 2025 and September 2025, falling from 80.9 billion to 73.6 billion US dollars, which contributed to a temporary spike in the solvency ratio.
- Debt-to-Assets Ratio Evolution
- The debt-to-assets ratio remained conservative during the first two years, fluctuating within a narrow band of 0.28 to 0.34. Starting in March 2024, the ratio entered a period of consistent expansion, climbing from 0.38 to 0.47 by June 2025. The ratio reached its maximum threshold of 0.50 in March 2026, indicating that half of the company's assets were financed through debt at that point, before retreating to 0.44 by June 2026.
In summary, the transition from a ratio of 0.31 in 2022 to 0.44 by mid-2026 represents a material increase in financial leverage. The divergence between asset growth and debt growth since 2024 suggests a strategic shift in funding or an increase in capital expenditures financed by debt.
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Financial Leverage
Honeywell International Inc., financial leverage calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Total assets | 77,344) | 73,988) | 73,681) | 80,917) | 78,419) | 75,218) | 75,196) | 73,492) | 69,329) | 65,645) | 61,525) | 61,296) | 62,337) | 59,883) | 62,275) | 60,287) | 62,258) | 63,352) | ||||||
| Total Honeywell Technologies shareowners’ equity | 18,537) | 13,590) | 13,904) | 16,782) | 16,095) | 17,463) | 18,619) | 17,406) | 16,947) | 16,454) | 15,856) | 17,231) | 17,299) | 16,919) | 16,697) | 17,707) | 17,541) | 18,365) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Financial leverage1 | 4.17 | 5.44 | 5.30 | 4.82 | 4.87 | 4.31 | 4.04 | 4.22 | 4.09 | 3.99 | 3.88 | 3.56 | 3.60 | 3.54 | 3.73 | 3.40 | 3.55 | 3.45 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 27.19 | 27.52 | 30.85 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 5.29 | 5.12 | 4.62 | 4.54 | 4.84 | 4.70 | 4.50 | 4.45 | 4.86 | 4.75 | 4.49 | 4.24 | 4.68 | 4.61 | 5.16 | 5.19 | 5.16 | 4.82 | ||||||
| Eaton Corp. plc | 2.77 | 2.79 | 2.12 | 2.16 | 2.18 | 2.12 | 2.08 | 2.05 | 2.05 | 2.00 | 2.02 | 2.03 | 2.05 | 2.04 | 2.06 | 2.14 | 2.15 | 2.12 | ||||||
| GE Aerospace | 7.24 | 7.11 | 6.97 | 6.82 | 6.55 | 6.45 | 6.37 | 6.71 | 6.62 | 5.49 | 5.96 | 5.47 | 5.23 | 5.20 | 5.16 | 5.75 | 5.35 | 4.92 | ||||||
| Lockheed Martin Corp. | 7.12 | 7.91 | 8.90 | 9.75 | 11.04 | 8.48 | 8.78 | 7.71 | 8.92 | 8.27 | 7.67 | 6.11 | 6.17 | 5.66 | 5.71 | 4.35 | 4.53 | 5.15 | ||||||
| RTX Corp. | 2.62 | 2.57 | 2.62 | 2.61 | 2.68 | 2.68 | 2.71 | 2.70 | 2.73 | 2.65 | 2.71 | 2.33 | 2.24 | 2.22 | 2.19 | 2.25 | 2.26 | 2.20 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Financial leverage = Total assets ÷ Total Honeywell Technologies shareowners’ equity
= 77,344 ÷ 18,537 = 4.17
2 Click competitor name to see calculations.
The financial leverage profile demonstrates a progressive increase in solvency risk from early 2022 through early 2026, characterized by a widening gap between asset growth and equity stability, followed by a sharp correction in mid-2026.
- Asset Growth Patterns
- Total assets remained relatively stable between March 2022 and December 2023, fluctuating within the 60 billion to 63 billion range. A distinct growth phase began in early 2024, with assets climbing consistently to a peak of 80.9 billion by September 2025. Following a contraction in December 2025 to 73.6 billion, the asset base resumed an upward trend, reaching 77.3 billion by June 2026.
- Shareowners' Equity Trends
- Equity levels exhibited a general downward trajectory over the majority of the analyzed period. After starting at 18.3 billion in March 2022, equity experienced gradual erosion, reaching a minimum of 13.5 billion by March 2026. This trend was interrupted by a significant and rapid recovery in June 2026, where equity increased to 18.5 billion, representing the highest equity level recorded in the period.
- Financial Leverage Interpretation
- The financial leverage ratio reflects an increasing reliance on external financing relative to equity. The ratio rose from 3.45 in March 2022 to a peak of 5.44 by March 2026. This peak correlates with the period of highest asset expansion combined with the lowest equity levels. The subsequent drop in the leverage ratio to 4.17 in June 2026 is directly attributable to the substantial infusion or recovery of shareowners' equity, which mitigated the leverage intensity despite the continued growth of total assets.
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Interest Coverage
Honeywell International Inc., interest coverage calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income attributable to Honeywell Technologies | 5,682) | 821) | (115) | 1,825) | 1,570) | 1,449) | 1,285) | 1,413) | 1,544) | 1,463) | 1,263) | 1,514) | 1,487) | 1,394) | 1,019) | 1,552) | 1,261) | 1,134) | ||||||
| Add: Net income attributable to noncontrolling interest | 4) | (26) | (8) | 34) | (1) | 18) | 5) | 2) | 16) | 12) | (15) | 1) | 14) | 14) | 2) | (3) | 2) | —) | ||||||
| Less: Net income from discontinued operations | —) | —) | (53) | —) | 186) | 171) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Add: Income tax expense | 1,578) | 91) | 32) | 363) | 244) | 369) | 254) | 409) | 414) | 396) | 258) | 452) | 403) | 374) | 168) | 432) | 441) | 371) | ||||||
| Add: Interest and other financial charges | 363) | 356) | 376) | 354) | 329) | 285) | 291) | 297) | 250) | 220) | 202) | 206) | 187) | 170) | 144) | 98) | 87) | 85) | ||||||
| Earnings before interest and tax (EBIT) | 7,627) | 1,242) | 338) | 2,576) | 1,956) | 1,950) | 1,835) | 2,121) | 2,224) | 2,091) | 1,708) | 2,173) | 2,091) | 1,952) | 1,333) | 2,079) | 1,791) | 1,590) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Interest coverage1 | 8.13 | 4.32 | 5.07 | 6.61 | 6.54 | 7.24 | 7.82 | 8.40 | 9.33 | 9.89 | 10.36 | 10.68 | 12.45 | 14.34 | 16.41 | 20.95 | 20.60 | 21.35 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 2.08 | 1.96 | 1.95 | -2.41 | -2.72 | -3.10 | -3.48 | -2.16 | -0.23 | 0.21 | 0.18 | -0.06 | -0.85 | -0.53 | -0.98 | -2.54 | -1.40 | -1.31 | ||||||
| Caterpillar Inc. | 27.68 | 24.64 | 24.21 | 25.46 | 25.81 | 26.67 | 27.21 | 26.28 | 26.88 | 27.68 | 26.66 | 24.81 | 23.80 | 21.33 | 20.80 | 22.05 | 20.08 | 19.10 | ||||||
| Eaton Corp. plc | 11.86 | 16.48 | 21.46 | 23.55 | 28.05 | 36.65 | 36.12 | 40.37 | 37.97 | 32.04 | 26.34 | 22.25 | 19.68 | 19.85 | 21.22 | 21.33 | 24.31 | 22.57 | ||||||
| GE Aerospace | 12.27 | 12.53 | 12.86 | 12.56 | 11.46 | 9.44 | 8.73 | 7.93 | 6.25 | 6.11 | 10.12 | 9.41 | 8.49 | 6.73 | 1.88 | -1.66 | -1.16 | -1.49 | ||||||
| Lockheed Martin Corp. | 7.68 | 6.06 | 6.30 | 5.50 | 5.60 | 7.12 | 7.00 | 8.65 | 8.83 | 9.19 | 9.84 | 10.42 | 11.74 | 10.58 | 11.72 | 13.31 | 10.88 | 14.12 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Interest coverage
= (EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025)
÷ (Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025)
= (7,627 + 1,242 + 338 + 2,576)
÷ (363 + 356 + 376 + 354)
= 8.13
2 Click competitor name to see calculations.
The solvency profile of the organization indicates a significant and sustained decline in the interest coverage ratio from March 2022 through June 2026. This trend reflects a diminishing margin of safety in the ability to service interest obligations using operating profits.
- Earnings Before Interest and Tax (EBIT)
- Operational earnings demonstrated moderate volatility between March 2022 and June 2024, generally fluctuating between 1.3 billion and 2.2 billion US dollars. A period of extreme instability is observed toward the end of the timeline, characterized by a sharp contraction to 338 million US dollars in December 2025, followed by an exceptional surge to 7.6 billion US dollars by June 2026.
- Interest and Other Financial Charges
- Financial charges exhibit a consistent and persistent upward trend. Expenses rose from 85 million US dollars in March 2022 to 363 million US dollars by June 2026. This steady increase suggests either a rise in the total debt burden or an escalation in the cost of borrowing over the period.
- Interest Coverage Ratio
- The interest coverage ratio moved from a high of 21.35 in March 2022 to a low of 4.32 in March 2026. This represents a substantial erosion of the coverage capacity, driven by the simultaneous increase in financial charges and the relative stagnation of EBIT for much of the period. Although a recovery to 8.13 was recorded in June 2026, this was primarily the result of the anomalous spike in EBIT rather than a reduction in interest expenses.
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