Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Paying user area
Try for free
Honeywell International Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Honeywell International Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Solvency Ratios (Summary)
Honeywell International Inc., solvency ratios (quarterly data)
Based on: 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 and systemic increase in leverage alongside a corresponding decline in the margin of safety regarding interest payments from March 2022 through March 2026. There is a clear trend of increasing reliance on debt to finance assets and operations, which has resulted in a weakened solvency position over the observed period.
- Debt-to-Equity and Capitalization Ratios
- A significant upward trend is observed in debt-to-equity, which rose from 1.05 in March 2022 to 2.70 by March 2026. This indicates a substantial shift in the capital structure toward debt financing relative to shareholder equity. Similarly, the debt-to-capital ratio increased from 0.51 to 0.73, while the debt-to-assets ratio grew from 0.31 to 0.50, meaning that by the end of the period, half of the total assets were financed through debt.
- Financial Leverage
- Financial leverage exhibited a steady increase from 3.45 to 5.44. The acceleration of this ratio, particularly from March 2024 onwards, suggests an aggressive expansion of the company's leverage posture, which typically amplifies both potential returns and financial risk.
- Interest Coverage and Debt Servicing
- The interest coverage ratio shows a persistent and sharp deterioration, falling from a high of 21.35 in March 2022 to 4.32 by March 2026. This decline represents a significant reduction in the company's ability to cover its interest expenses from operating earnings, moving from a position of high liquidity to a much tighter operational margin.
The correlation between the rising leverage ratios and the falling interest coverage ratio suggests that the increase in total debt has not been matched by a proportional increase in earnings available for debt service. The most pronounced deterioration in these solvency metrics occurred between March 2024 and March 2026, marking a period of rapid leverage expansion and reduced financial flexibility.
Debt Ratios
Coverage Ratios
Debt to Equity
Honeywell International Inc., debt to equity calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Total Honeywell shareowners’ equity | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
Debt to equity = Total debt ÷ Total Honeywell shareowners’ equity
= ÷ =
2 Click competitor name to see calculations.
An analysis of the solvency position reveals a consistent and accelerating increase in financial leverage over the period from March 2022 to March 2026. The company transitioned from a relatively balanced capital structure to one characterized by significantly higher debt levels relative to shareholder equity, indicating a shift toward a more aggressive financing strategy or an increase in long-term liabilities.
- Total Debt Trends
- Debt levels remained relatively stable through 2022 and 2023, fluctuating within a range of $16.9 billion to $21.3 billion. A sharp upward trajectory began in the first quarter of 2024, where debt rose to $25.2 billion, continuing a steep climb to a peak of $37.0 billion in June 2025. By March 2026, total debt remained elevated at $36.7 billion.
- Shareowners' Equity Trends
- Equity exhibited moderate volatility between March 2022 and December 2023, staying primarily between $15.8 billion and $18.3 billion. A more pronounced downward trend emerged starting in 2025, with equity falling from $16.0 billion in March 2025 to $13.5 billion by March 2026. This contraction of the equity base further amplified the impact of the rising debt.
- Debt to Equity Ratio Analysis
- The debt to equity ratio serves as a primary indicator of the increasing leverage. Between March 2022 and December 2023, the ratio remained stable, ranging from 0.96 to 1.29. Beginning in March 2024, the ratio accelerated upward, crossing the 2.0 threshold in the second quarter of 2025 and reaching a period high of 2.70 by March 2026. This progression signifies that the company's reliance on debt to fund its operations and assets has more than doubled relative to its equity over the analyzed timeframe.
Debt to Capital
Honeywell International Inc., debt to capital calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Commercial paper and other short-term borrowings | |||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Total Honeywell shareowners’ equity | |||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
A comprehensive evaluation of the solvency metrics reveals a significant shift in the capital structure, characterized by a steady increase in leverage starting in the first quarter of 2024. While the period between March 2022 and December 2023 was marked by relative stability, the subsequent quarters demonstrate a marked acceleration in debt accumulation relative to total capital.
- Total Debt Trends
- Total debt remained relatively range-bound between approximately 17 billion and 21 billion US dollars from March 2022 through December 2023. However, a sharp upward trajectory began in March 2024, with debt levels rising from 25.26 billion US dollars to a peak of 37.04 billion US dollars by June 2025. Despite a brief contraction in December 2025, the trend concluded with total debt at 36.74 billion US dollars in March 2026, representing a substantial increase in total obligations over the analyzed period.
- Total Capital Expansion
- Total capital experienced modest fluctuations between 34 billion and 38 billion US dollars during the first two years of the data set. Parallel to the increase in debt, total capital began to expand in March 2024, climbing from 41.71 billion US dollars to a peak of 53.82 billion US dollars in September 2025. A notable reduction occurred in December 2025, where capital fell to 48.48 billion US dollars, before recovering to 50.33 billion US dollars by March 2026.
- Debt to Capital Ratio Analysis
- The debt to capital ratio reflects a growing reliance on borrowed funds. From March 2022 to December 2023, the ratio remained stable, oscillating within a narrow corridor between 0.49 and 0.56. Starting in March 2024, the ratio entered a consistent upward climb, surpassing 0.60 and reaching a terminal value of 0.73 by March 2026. This indicates that debt has grown at a faster rate than the overall capital base, resulting in a higher proportion of leverage and a potential increase in financial risk.
Debt to Assets
Honeywell International Inc., debt to assets calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
A consistent upward trend in the debt-to-assets ratio is observed from March 31, 2022, through March 31, 2026. The company shifted from a relatively stable leverage position in the first two years of the period to a more aggressive debt-financed structure in the latter half, with the ratio increasing from 0.31 to 0.50.
- Total Debt Trajectory
- Between March 2022 and December 2023, total debt remained relatively range-bound, fluctuating between approximately 16.9 billion and 21.3 billion US dollars. However, a significant escalation began in March 2024, with debt levels rising from 25.2 billion US dollars to a peak of 37.0 billion US dollars by September 2025, before settling at 36.7 billion US dollars in March 2026.
- Total Asset Growth
- Total assets exhibited a period of stability and slight contraction between March 2022 and March 2023. Starting in March 2024, a growth phase occurred, with assets increasing from 65.6 billion US dollars to a peak of 80.9 billion US dollars in September 2025. A notable reduction in total assets occurred between September 2025 and December 2025, dropping to 73.6 billion US dollars, though levels recovered slightly by the end of the period.
- Solvency Ratio Interpretation
- The debt-to-assets ratio remained stable between 0.28 and 0.34 throughout 2022 and 2023. A structural shift occurred in the first quarter of 2024, where the ratio climbed to 0.38. This upward momentum continued steadily, surpassing 0.40 by June 2024 and reaching a peak of 0.50 by March 2026. This indicates that total debt grew at a significantly faster rate than total assets, resulting in a higher proportion of the company's assets being financed through debt.
The data reflects a strategic increase in financial leverage starting in early 2024. While both assets and debt increased, the disproportionate growth in liabilities relative to the asset base has led to a weakened solvency profile over the four-year horizon.
Financial Leverage
Honeywell International Inc., financial leverage calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Total Honeywell shareowners’ equity | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
Financial leverage = Total assets ÷ Total Honeywell shareowners’ equity
= ÷ =
2 Click competitor name to see calculations.
A sustained upward trend in financial leverage is evident over the period from March 2022 to March 2026, indicating a shift toward a more aggressive capital structure. This progression is characterized by a divergence between total asset growth and a declining trend in shareowners' equity.
- Total Asset Evolution
- Total assets exhibited a general growth trajectory, rising from 63,352 million USD in March 2022 to a peak of 80,917 million USD by September 2025. While there were minor fluctuations between 2022 and early 2023, a period of consistent expansion occurred throughout 2024 and the first three quarters of 2025. A contraction was observed in the final quarter of 2025, with assets decreasing to 73,681 million USD, before stabilizing at 73,988 million USD in March 2026.
- Shareowners' Equity Trends
- Equity levels remained relatively range-bound between 15,856 million USD and 18,619 million USD from March 2022 through March 2025. However, a pronounced downward trend emerged starting in June 2025. By March 2026, shareowners' equity declined to 13,590 million USD, marking the lowest point in the analyzed sequence and representing a significant reduction in the equity cushion.
- Financial Leverage Ratio Analysis
- The financial leverage ratio increased steadily from 3.45 in March 2022 to 5.44 by March 2026. This increase occurred in three distinct phases: a period of relative stability between 3.40 and 3.73 through 2022; a moderate climb to 4.22 by September 2024; and a sharp acceleration starting in March 2025, where the ratio jumped from 4.31 to 5.44 within one year.
The increase in the leverage ratio is primarily driven by the simultaneous expansion of the asset base and the contraction of equity. The acceleration of leverage in late 2025 and early 2026 suggests an increased reliance on debt or other liabilities to finance operations and assets, resulting in a higher risk profile regarding solvency and financial stability.
Interest Coverage
Honeywell International Inc., interest coverage calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | |||||||||||||||||||||||
| Less: Net income from discontinued operations | |||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||
| Add: Interest and other financial charges | |||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
Interest coverage
= (EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025)
÷ (Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
A comprehensive analysis of the solvency indicators reveals a significant downward trajectory in the capacity to service financial obligations over the period from March 2022 to March 2026.
- Interest Coverage Ratio Trend
- The interest coverage ratio experienced a consistent and substantial decline, falling from a peak of 21.35 in March 2022 to 4.32 by March 2026. This trend indicates a marked reduction in the safety margin available to cover interest payments using operating profits.
- Financial Charges Analysis
- A primary driver of the deteriorating coverage ratio is the steady escalation of interest and other financial charges. These expenses rose from 85 million USD in March 2022 to a peak of 375 million USD in December 2025, reflecting a significant increase in the cost of debt or a higher volume of interest-bearing liabilities.
- EBIT Performance and Volatility
- Earnings before interest and tax (EBIT) demonstrated overall growth with periodic volatility, though these gains did not offset the rise in financial charges. While EBIT reached a high of 2,576 million USD in September 2025, an anomalous contraction to 93 million USD occurred in December 2025, which contributed to the continued erosion of the coverage ratio.
- Solvency Implications
- The convergence of rising financial expenses and fluctuating operating earnings has resulted in a compression of the solvency buffer. The transition from a coverage ratio exceeding 20x to one below 5x suggests a heightened sensitivity to earnings volatility and a more leveraged financial profile.