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: 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), 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).
- Debt to Equity
- The debt to equity ratio remained relatively stable around 1.19 through the initial three quarters, before dropping to 1.06 by the end of 2021. Starting from 2022, the ratio showed some fluctuations but generally trended upward, rising sharply from 1.29 at the end of 2023 to a peak of 2.27 in mid-2025. The latter part of the analysis period indicates a growing reliance on debt relative to equity.
- Debt to Capital
- Debt to capital ratios followed a pattern similar to debt to equity, starting near 0.54 in early 2021 and dipping slightly to around 0.49 - 0.52 throughout 2021 and 2022. From late 2023 onward, the ratio increased steadily, reaching 0.69 in mid-2025. This increase highlights a stronger proportion of debt within the company’s total capital structure over time.
- Debt to Assets
- The debt to assets ratio decreased slightly from 0.34 in early 2021 to approximately 0.28 in mid-2022, indicating a brief period of reduced leverage relative to assets. However, from late 2022 onward, the ratio rose steadily, peaking at 0.47 in mid-2025. This trend suggests greater indebtedness in relation to the company's asset base over the latter periods.
- Financial Leverage
- Financial leverage showed minor fluctuations initially, ranging between 3.4 and 3.7 in 2021 and 2022, followed by a notable increase from the end of 2023, climbing progressively to a high of 4.87 by mid-2025. This indicates an increasing level of total assets financed by shareholders' equity, pointing to elevated financial risk.
- Interest Coverage
- Interest coverage started relatively high at 16.79 in the first quarter of 2021 and improved further, reaching a peak above 22 by the end of that year. However, from 2022 onward, the coverage ratio steadily deteriorated, dropping to around 6.9 by mid-2025. This downward trend highlights a reduced ability to cover interest expenses from operating earnings, signaling increased financial stress over time.
Debt Ratios
Coverage Ratios
Debt to Equity
Honeywell International Inc., debt to equity calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Commercial paper and other short-term borrowings | 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) | 3,542) | 3,559) | 3,573) | 3,568) | ||||||
| Current maturities of long-term debt | 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) | 1,803) | 3,344) | 1,645) | 1,635) | ||||||
| Long-term debt, excluding current maturities | 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) | 14,254) | 14,346) | 16,138) | 16,124) | ||||||
| Total debt | 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) | 19,599) | 21,249) | 21,356) | 21,327) | ||||||
| Total Honeywell shareowners’ equity | 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) | 18,569) | 17,842) | 17,938) | 17,986) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | 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 | 1.06 | 1.19 | 1.19 | 1.19 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | — | 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 | 2.29 | 2.21 | 2.23 | 2.30 | ||||||
| Eaton Corp. plc | — | 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 | 0.52 | 0.57 | 0.79 | 0.68 | ||||||
| GE Aerospace | 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 | 0.87 | 1.68 | 1.90 | 2.12 | ||||||
| Lockheed Martin Corp. | 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 | 1.07 | 1.21 | 1.87 | 1.93 | ||||||
| RTX Corp. | 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 | 0.43 | 0.44 | 0.44 | 0.44 | ||||||
Based on: 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), 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).
1 Q3 2025 Calculation
Debt to equity = Total debt ÷ Total Honeywell shareowners’ equity
= 37,037 ÷ 16,782 = 2.21
2 Click competitor name to see calculations.
The analysis of the financial data reveals distinct trends in the company’s leverage and equity over the last quarters. The focus is on total debt, total shareowners’ equity, and the calculated debt-to-equity ratio, illustrating the company’s financial structure and risk profile over time.
- Total Debt
- Total debt remained relatively stable from the first quarter of 2021 through the end of 2022, with minor fluctuations within the range of approximately $16.9 billion to $21.3 billion. Notably, after December 2022, total debt showed a marked upward trajectory, increasing from around $20.4 billion to $37 billion by the third quarter of 2025. This rise reflects a significant increase in leveraging activities or accumulated obligations during this latter period.
- Total Shareowners’ Equity
- Total equity exhibited moderate volatility throughout the timeframe. Initially, equity hovered near the $17.9 billion mark during early 2021, with some variability and a downward trend beginning in late 2022 through mid-2025. Equity values moved mostly downward from approximately $18.6 billion at the end of 2021 to about $16.8 billion in the third quarter of 2025, indicating possible erosion in shareholders’ net assets or retained earnings over time.
- Debt to Equity Ratio
- The debt-to-equity ratio shows a clear pattern of increasing leverage. From a stable ratio near 1.19 in early 2021, it declined slightly by the end of 2021 to around 1.06, suggesting a temporary reduction in leverage. However, beginning in early 2022, this ratio climbed steadily. By the end of 2024, the ratio reached 1.77 and increased further to peak at 2.27 in the second quarter of 2025 before a small decline to 2.21 in the third quarter of 2025. This signifies that the company has increasingly financed its assets through debt relative to equity, pointing to higher financial risk or strategic leveraging.
Overall, the company’s financial leverage has intensified significantly in recent periods, driven primarily by rising total debt and declining equity levels. The increasing debt-to-equity ratio highlights a shift towards greater reliance on external financing, which could affect the company's financial flexibility and risk profile going forward. Monitoring future trends in equity and debt management will be important to assess the sustainability of this financial structure.
Debt to Capital
Honeywell International Inc., debt to capital calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Commercial paper and other short-term borrowings | 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) | 3,542) | 3,559) | 3,573) | 3,568) | ||||||
| Current maturities of long-term debt | 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) | 1,803) | 3,344) | 1,645) | 1,635) | ||||||
| Long-term debt, excluding current maturities | 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) | 14,254) | 14,346) | 16,138) | 16,124) | ||||||
| Total debt | 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) | 19,599) | 21,249) | 21,356) | 21,327) | ||||||
| Total Honeywell shareowners’ equity | 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) | 18,569) | 17,842) | 17,938) | 17,986) | ||||||
| Total capital | 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) | 38,168) | 39,091) | 39,294) | 39,313) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | 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 | 0.51 | 0.54 | 0.54 | 0.54 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 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 | 1.35 | 1.30 | 1.36 | 1.40 | ||||||
| Caterpillar Inc. | — | 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 | 0.70 | 0.69 | 0.69 | 0.70 | ||||||
| Eaton Corp. plc | — | 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 | 0.34 | 0.36 | 0.44 | 0.40 | ||||||
| GE Aerospace | 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 | 0.47 | 0.63 | 0.65 | 0.68 | ||||||
| Lockheed Martin Corp. | 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 | 0.52 | 0.55 | 0.65 | 0.66 | ||||||
| RTX Corp. | 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 | 0.30 | 0.30 | 0.31 | 0.31 | ||||||
Based on: 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), 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).
1 Q3 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 37,037 ÷ 53,819 = 0.69
2 Click competitor name to see calculations.
The analysis of the quarterly financial metrics reveals notable trends in the capital structure over the reviewed periods.
- Total Debt
- The total debt displayed fluctuations across the timeline. Initially, it was relatively stable around the 21,000 million US dollar mark, with a slight decrease observed toward the end of 2021. A further decline occurred reaching a low near 16,985 million US dollars by the third quarter of 2022. Subsequently, total debt steadily increased, hitting a peak close to 37,037 million US dollars in the third quarter of 2025. This represents a significant rise in leverage over the latter periods analyzed.
- Total Capital
- Total capital experienced a declining trend from approximately 39,313 million US dollars in early 2021 to around 34,692 million US dollars by the third quarter of 2022, indicating a contraction phase. However, following this period, total capital increased markedly, surpassing previous levels and reaching about 53,819 million US dollars by late 2025. This upward trajectory suggests capital expansion alongside the rising debt levels.
- Debt to Capital Ratio
- The debt to capital ratio showed relative stability in the early periods, hovering near 0.54 to 0.51, indicating a balanced leverage profile. After a minor dip to 0.49 in late 2021 and early 2022, the ratio began a gradual but consistent increase. By the third quarter of 2025, the ratio escalated to approximately 0.69, reflecting a higher proportion of debt within the capital structure. This trend demonstrates an increasing reliance on debt financing relative to total capital.
Overall, the data indicates a strategic shift toward higher leverage over the analyzed periods, accompanied by substantial growth in total capital. The rising debt to capital ratio suggests that debt has been the predominant driver of capital increase in recent years. This pattern may imply more aggressive financial structuring and potentially higher financial risk exposure associated with increased borrowing.
Debt to Assets
Honeywell International Inc., debt to assets calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Commercial paper and other short-term borrowings | 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) | 3,542) | 3,559) | 3,573) | 3,568) | ||||||
| Current maturities of long-term debt | 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) | 1,803) | 3,344) | 1,645) | 1,635) | ||||||
| Long-term debt, excluding current maturities | 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) | 14,254) | 14,346) | 16,138) | 16,124) | ||||||
| Total debt | 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) | 19,599) | 21,249) | 21,356) | 21,327) | ||||||
| Total assets | 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) | 64,470) | 64,191) | 63,945) | 63,561) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | 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 | 0.30 | 0.33 | 0.33 | 0.34 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 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 | 0.42 | 0.43 | 0.43 | 0.42 | ||||||
| Caterpillar Inc. | — | 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 | 0.46 | 0.46 | 0.46 | 0.47 | ||||||
| Eaton Corp. plc | — | 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 | 0.25 | 0.27 | 0.33 | 0.30 | ||||||
| GE Aerospace | 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 | 0.18 | 0.27 | 0.27 | 0.29 | ||||||
| Lockheed Martin Corp. | 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 | 0.23 | 0.23 | 0.23 | 0.24 | ||||||
| RTX Corp. | 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 | 0.20 | 0.20 | 0.20 | 0.20 | ||||||
Based on: 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), 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).
1 Q3 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 37,037 ÷ 80,917 = 0.46
2 Click competitor name to see calculations.
- Total Debt
- The total debt shows a fluctuating but generally upward trend over the observed periods. Starting at approximately 21.3 billion US dollars at the end of the first quarter of 2021, the debt decreases modestly by the end of 2021 to around 19.6 billion. Through 2022 and early 2023, total debt continues to experience fluctuations, ranging between roughly 16.9 billion and 21.4 billion. From the first quarter of 2024 onwards, there is a clear and sustained increase, with debt levels rising from approximately 25.3 billion to over 37 billion US dollars by the third quarter of 2025. This indicates an intensifying reliance on debt financing in the later periods.
- Total Assets
- Total assets remain relatively stable in the early periods, around the range of 63.5 billion to 64.5 billion US dollars from early 2021 through to late 2021. There is a mild decline during 2022, with assets reaching a lower point just below 60 billion in early 2023. Subsequently, a recovery and growth trend begin in 2024, with assets increasing steadily and reaching over 80 billion US dollars by the third quarter of 2025. This continuous asset growth in the later periods reflects possible expansion or asset acquisitions by the company.
- Debt to Assets Ratio
- The debt to assets ratio follows a declining trend through 2021 into 2022, decreasing from 0.34 to a low of 0.28 by the third quarter of 2022, indicating improved asset coverage relative to debt during this time. However, starting towards the end of 2022 and continuing through 2023 and beyond, the ratio steadily increases from around 0.31 to a peak near 0.47 in mid-2025. This rising leverage ratio suggests the company is assuming proportionally more debt compared to its asset base in the most recent periods, potentially signaling increased financial risk or strategic leveraging.
- Overall Observations
- The data reveals a period of debt reduction and relative stability in total assets initially, followed by a phase characterized by rising debt and asset growth beginning in early 2024. The increasing debt to assets ratio in the later periods indicates a shift towards higher leverage. This pattern may reflect strategic decisions to finance growth or expansion initiatives through increased borrowing. Continuous monitoring of the leverage levels will be important to assess sustainability and financial flexibility.
Financial Leverage
Honeywell International Inc., financial leverage calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Total assets | 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) | 64,470) | 64,191) | 63,945) | 63,561) | ||||||
| Total Honeywell shareowners’ equity | 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) | 18,569) | 17,842) | 17,938) | 17,986) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | 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 | 3.47 | 3.60 | 3.56 | 3.53 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | — | 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 | 5.02 | 4.85 | 4.85 | 4.87 | ||||||
| Eaton Corp. plc | — | 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 | 2.07 | 2.14 | 2.39 | 2.27 | ||||||
| GE Aerospace | 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 | 4.93 | 6.33 | 7.09 | 7.30 | ||||||
| Lockheed Martin Corp. | 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 | 4.64 | 5.38 | 7.99 | 8.15 | ||||||
| RTX Corp. | 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 | 2.21 | 2.23 | 2.23 | 2.24 | ||||||
Based on: 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), 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).
1 Q3 2025 Calculation
Financial leverage = Total assets ÷ Total Honeywell shareowners’ equity
= 80,917 ÷ 16,782 = 4.82
2 Click competitor name to see calculations.
The financial data reveals notable trends in the company's asset base, equity position, and leverage over the analyzed periods. The total assets exhibit a fluctuating yet generally upward trajectory from the start through the later periods, with values initially around the mid-$63 billion mark, experiencing slight decreases before rising significantly to surpass $80 billion by the final period. This indicates a phase of asset growth likely reflective of expansion or acquisition activities, along with possible capital investments.
Shareowners’ equity, in contrast, displays a more variable pattern with periods of decline followed by recovery phases. Starting near $18 billion, equity declines in some intervals, notably toward the end of the earlier periods and again restrains growth in the most recent quarters, ending somewhat below the initial levels. This fluctuation suggests impacts of comprehensive income changes, dividend distributions, or share repurchases affecting the equity base.
Financial leverage, measured as a ratio, demonstrates an increasing trend over the timeframe. The ratio remains around 3.5 in the earlier years but progressively rises, reaching near 4.8 in the concluding periods. This indicates a growing reliance on debt financing relative to equity, intensifying financial risk but potentially enhancing returns. The consistent increase in leverage concurrent with asset growth and subdued equity expansion reflects a strategic shift towards higher debt utilization.
- Total Assets
- Show an overall increase with some interim declines, moving from approximately $63.5 billion to over $80 billion, indicating expansion.
- Shareowners’ Equity
- Exhibit fluctuations with periods of decline and partial recovery, ending slightly below the starting value, suggesting variability in retained earnings or capital transactions.
- Financial Leverage
- Displays a steady upward trend from about 3.5 to near 4.8, signaling increased use of debt in the company's capital structure and heightened financial leverage.
In summary, the data suggest that the company has been actively growing its asset base while managing its equity variably, leading to a significant increase in financial leverage. This pattern points to a strategic emphasis on leveraging debt capacity to finance growth, warranting attention to debt servicing capabilities and risk management going forward.
Interest Coverage
Honeywell International Inc., interest coverage calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income attributable to Honeywell | 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) | 1,428) | 1,257) | 1,430) | 1,427) | ||||||
| Add: Net income attributable to noncontrolling interest | 34) | (1) | 18) | 5) | 2) | 16) | 12) | (15) | 1) | 14) | 14) | 2) | (3) | 2) | —) | 14) | 16) | 17) | 21) | ||||||
| Add: Income tax expense | 363) | 302) | 417) | 254) | 409) | 414) | 396) | 258) | 452) | 403) | 374) | 168) | 432) | 441) | 371) | 351) | 427) | 434) | 413) | ||||||
| Add: Interest and other financial charges | 354) | 330) | 286) | 291) | 297) | 250) | 220) | 202) | 206) | 187) | 170) | 144) | 98) | 87) | 85) | 80) | 90) | 83) | 90) | ||||||
| Earnings before interest and tax (EBIT) | 2,576) | 2,201) | 2,170) | 1,835) | 2,121) | 2,224) | 2,091) | 1,708) | 2,173) | 2,091) | 1,952) | 1,333) | 2,079) | 1,791) | 1,590) | 1,873) | 1,790) | 1,964) | 1,951) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Interest coverage1 | 6.96 | 6.92 | 7.43 | 7.82 | 8.40 | 9.33 | 9.89 | 10.36 | 10.68 | 12.45 | 14.34 | 16.41 | 20.95 | 20.60 | 21.35 | 22.09 | 20.98 | 18.89 | 16.79 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | -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 | -0.88 | -2.29 | -2.55 | -4.26 | ||||||
| Caterpillar Inc. | — | 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 | 17.88 | 14.11 | 11.79 | 9.28 | ||||||
| Eaton Corp. plc | — | 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 | 21.11 | 20.08 | 15.71 | 11.87 | ||||||
| GE Aerospace | 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 | -0.96 | 2.15 | 1.11 | 0.65 | ||||||
| Lockheed Martin Corp. | 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 | 14.27 | 13.67 | 15.97 | 15.44 | ||||||
Based on: 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), 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).
1 Q3 2025 Calculation
Interest coverage
= (EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025
+ EBITQ4 2024)
÷ (Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025
+ Interest expenseQ4 2024)
= (2,576 + 2,201 + 2,170 + 1,835)
÷ (354 + 330 + 286 + 291)
= 6.96
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the company's earnings before interest and tax (EBIT), interest and other financial charges, and interest coverage ratio over the observed periods.
- Earnings before interest and tax (EBIT)
- The EBIT shows fluctuations across the quarters with periods of both growth and decline. Beginning at $1,951 million in March 2021, EBIT initially remained relatively stable, dipping slightly in the latter half of 2021. Early 2022 exhibited recovery with some increase, peaking near $2,079 million in September 2022, before experiencing a sharp decline to $1,333 million by December 2022. In 2023, EBIT rebounded strongly, surpassing previous peaks multiple times, reaching $2,173 million in September 2023. The trend continues upward into early 2024 with some minor volatility, and notably a significant increase to $2,576 million by September 2025. Overall, EBIT demonstrates resilience with cyclical fluctuations but a positive growth trajectory towards the end of the period.
- Interest and other financial charges
- Interest expenses show a consistent upward trend throughout the entire period. Starting at $90 million in March 2021, interest costs steadily increased without reversal, doubling and surpassing $300 million by September 2025. The rise in interest charges suggests increased borrowing or higher financing costs over time, imposing greater fixed financial obligations on the company.
- Interest coverage ratio
- The interest coverage ratio, which measures the company's ability to service debt through operating earnings, reveals a declining trend. Initially high at 16.79 in March 2021, the ratio peaked around 22.09 by December 2021 before entering a prolonged decrease. This decline reflects that EBIT growth did not keep pace with the rising interest expenses. By September 2025, the ratio had fallen below 7, indicating a substantially reduced margin of safety to cover interest costs, which could signal increased financial risk associated with leveraging.
In summary, while the company has managed to restore and grow its EBIT over time with a positive outlook towards the end of the dataset, the continuous rise in interest expenses coupled with a declining interest coverage ratio may indicate growing pressure on its financial structure. The decrease in interest coverage suggests caution, as the ability to meet interest obligations from operating profit has weakened, pointing to the need for careful management of debt levels and cost of financing going forward.