Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Honeywell International Inc., long-term (investment) activity ratios (quarterly data)
Based on: 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).
An examination of the investment activity ratios reveals varying trends over the observed period. Generally, the ratios demonstrate relative stability with some fluctuations, particularly in the latter half of the period. The net fixed asset turnover ratio exhibits an initial increasing trend, followed by a period of stabilization and then a notable increase at the end of the period. Total asset turnover shows a more subdued pattern, while equity turnover demonstrates a consistent upward trajectory with a significant jump towards the end of the observation window.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio generally increased from 6.27 in March 2022 to a peak of 6.64 in September 2022, before declining slightly to 6.48 in December 2022. This ratio remained relatively stable through the first three quarters of 2023, fluctuating between 6.57 and 6.64. A more pronounced decline was observed in December 2023, falling to 6.22, followed by a slight recovery to 6.31 in March 2024. The ratio continued to decrease through September 2024, reaching 6.50, before experiencing a substantial increase to 8.09 by December 2025. This suggests increasing efficiency in utilizing fixed assets to generate revenue in the most recent quarter.
- Total Asset Turnover
- Total asset turnover showed a modest increase from 0.54 in March 2022 to 0.58 in September 2022, followed by a slight decrease to 0.57 in December 2022. The ratio remained relatively stable throughout 2023, oscillating between 0.58 and 0.60. A gradual downward trend is apparent from March 2024, with the ratio declining to 0.51 by September 2025. This indicates a decreasing ability to generate sales from each dollar of assets. A slight recovery to 0.51 is observed in December 2025, but remains below prior levels.
- Equity Turnover
- Equity turnover consistently increased throughout the period. Starting at 1.87 in March 2022, the ratio rose to 2.12 by December 2022. This upward trend continued into 2023, reaching 2.31 in December 2023. The ratio experienced further growth in 2024, reaching 2.24 in March and 2.17 in September. A significant increase is observed in the final quarters, with the ratio reaching 2.48 in June 2025 and culminating in 2.69 in December 2025. This suggests an increasing ability to generate revenue from shareholder equity.
In summary, while total asset turnover indicates a slight decrease in asset utilization efficiency, both net fixed asset turnover and equity turnover demonstrate positive trends, particularly in the latter part of the period. The substantial increase in net fixed asset turnover and equity turnover in December 2025 warrants further investigation to understand the underlying drivers of this improvement.
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Net Fixed Asset Turnover
Honeywell International Inc., net fixed asset turnover calculation (quarterly data)
| 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 sales | 6,860) | 10,408) | 10,352) | 9,822) | 10,088) | 9,728) | 9,577) | 9,105) | 9,440) | 9,212) | 9,146) | 8,864) | 9,186) | 8,951) | 8,953) | 8,376) | |||||
| Property, plant and equipment, net | 4,629) | 6,681) | 6,405) | 6,213) | 6,194) | 5,822) | 5,752) | 5,698) | 5,660) | 5,486) | 5,486) | 5,472) | 5,471) | 5,339) | 5,342) | 5,470) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Net fixed asset turnover1 | 8.09 | 6.09 | 6.24 | 6.31 | 6.22 | 6.50 | 6.49 | 6.48 | 6.48 | 6.64 | 6.59 | 6.57 | 6.48 | 6.54 | 6.45 | 6.27 | |||||
| Benchmarks | |||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 5.82 | 6.69 | 6.46 | 6.06 | 5.83 | 6.52 | 6.70 | 7.15 | 7.30 | 7.23 | 7.04 | 6.72 | 6.31 | 5.85 | 5.72 | 5.68 | |||||
| Caterpillar Inc. | 4.23 | 4.27 | 4.29 | 4.45 | 4.59 | 4.85 | 5.01 | 5.08 | 5.04 | 5.17 | 5.10 | 4.91 | 4.70 | 4.62 | 4.36 | 4.18 | |||||
| Eaton Corp. plc | 6.36 | 6.55 | 6.45 | 6.72 | 6.67 | 6.63 | 6.70 | 6.65 | 6.57 | 6.77 | 6.75 | 6.67 | 6.59 | 6.80 | 6.50 | 6.38 | |||||
| GE Aerospace | 5.30 | 5.30 | 5.05 | 4.85 | 4.83 | 6.03 | 7.23 | 4.77 | 5.17 | 5.50 | 5.58 | 5.84 | 5.08 | 5.04 | 4.83 | 4.73 | |||||
| Lockheed Martin Corp. | 8.46 | 8.41 | 8.29 | 8.24 | 8.14 | 8.43 | 8.47 | 8.34 | 8.07 | 8.41 | 8.46 | 8.33 | 8.27 | 8.48 | 8.48 | 8.70 | |||||
| RTX Corp. | 5.25 | 5.27 | 5.16 | 5.07 | 5.02 | 4.98 | 4.61 | 4.54 | 4.38 | 4.37 | 4.61 | 4.53 | 4.42 | 4.50 | 4.43 | 4.37 | |||||
Based on: 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 Q4 2025 Calculation
Net fixed asset turnover
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Property, plant and equipment, net
= (6,860 + 10,408 + 10,352 + 9,822)
÷ 4,629 = 8.09
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits a generally stable pattern over the observed period, with some fluctuations. Initially, the ratio demonstrates a slight increasing trend from March 2022 through September 2023, followed by a decline and a significant surge in the final period.
- Overall Trend
- From March 31, 2022 (6.27) to September 30, 2023 (6.64), the ratio generally increased, indicating improving efficiency in utilizing fixed assets to generate sales. However, this positive trend reversed in the latter part of 2023 and continued into the first half of 2024.
- Short-Term Fluctuations (2022-2023)
- The ratio experienced minor quarterly variations between 6.27 and 6.64 during this period. These fluctuations suggest consistent, but not dramatically changing, operational efficiency. The highest value was observed in September 2023 (6.64).
- Decline (Late 2023 - Mid 2024)
- A noticeable decline is observed from December 2023 (6.48) to June 2024 (6.49), culminating in a low of 6.22 in December 2024. This suggests a potential decrease in the efficiency of fixed asset utilization during this timeframe, possibly due to slower sales growth relative to the fixed asset base.
- Significant Increase (Late 2024 - Early 2025)
- The ratio experiences a substantial increase in the final period, reaching 8.09 by December 31, 2025. This represents a significant improvement in fixed asset turnover. This increase could be attributed to a substantial decrease in the reported net property, plant, and equipment, or a significant increase in net sales, or a combination of both. The substantial decrease in net property, plant, and equipment should be investigated further.
- Net Sales and Fixed Asset Relationship
- The observed ratio movements correlate with changes in both net sales and the net value of property, plant, and equipment. The increase in the ratio from 2022 to 2023 aligns with relatively stable fixed assets and increasing sales. The subsequent decline corresponds with a gradual increase in fixed assets and relatively flat sales. The final surge is driven by a significant reduction in fixed assets alongside a decrease in net sales.
In conclusion, the net fixed asset turnover ratio demonstrates a period of relative stability followed by a notable shift in the final period, warranting further investigation into the underlying drivers of these changes, particularly the significant decrease in net fixed assets at the end of the observed timeframe.
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Total Asset Turnover
Honeywell International Inc., total asset turnover calculation (quarterly data)
| 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 sales | 6,860) | 10,408) | 10,352) | 9,822) | 10,088) | 9,728) | 9,577) | 9,105) | 9,440) | 9,212) | 9,146) | 8,864) | 9,186) | 8,951) | 8,953) | 8,376) | |||||
| Total assets | 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) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Total asset turnover1 | 0.51 | 0.50 | 0.51 | 0.52 | 0.51 | 0.52 | 0.54 | 0.56 | 0.60 | 0.59 | 0.58 | 0.60 | 0.57 | 0.58 | 0.55 | 0.54 | |||||
| Benchmarks | |||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 0.53 | 0.54 | 0.49 | 0.44 | 0.43 | 0.53 | 0.52 | 0.57 | 0.57 | 0.56 | 0.55 | 0.52 | 0.49 | 0.45 | 0.45 | 0.45 | |||||
| Caterpillar Inc. | 0.65 | 0.65 | 0.66 | 0.70 | 0.70 | 0.72 | 0.76 | 0.76 | 0.73 | 0.73 | 0.72 | 0.70 | 0.69 | 0.66 | 0.63 | 0.61 | |||||
| Eaton Corp. plc | 0.67 | 0.66 | 0.64 | 0.65 | 0.65 | 0.63 | 0.61 | 0.61 | 0.60 | 0.61 | 0.60 | 0.60 | 0.59 | 0.59 | 0.56 | 0.56 | |||||
| GE Aerospace | 0.33 | 0.31 | 0.30 | 0.29 | 0.29 | 0.35 | 0.42 | 0.36 | 0.40 | 0.43 | 0.42 | 0.43 | 0.39 | 0.40 | 0.39 | 0.37 | |||||
| Lockheed Martin Corp. | 1.25 | 1.22 | 1.22 | 1.27 | 1.28 | 1.28 | 1.29 | 1.27 | 1.29 | 1.19 | 1.18 | 1.21 | 1.25 | 1.24 | 1.24 | 1.28 | |||||
| RTX Corp. | 0.52 | 0.51 | 0.50 | 0.50 | 0.50 | 0.48 | 0.45 | 0.44 | 0.43 | 0.41 | 0.44 | 0.42 | 0.42 | 0.42 | 0.41 | 0.41 | |||||
Based on: 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 Q4 2025 Calculation
Total asset turnover
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Total assets
= (6,860 + 10,408 + 10,352 + 9,822)
÷ 73,681 = 0.51
2 Click competitor name to see calculations.
The total asset turnover ratio for the analyzed period demonstrates a generally stable, albeit slightly declining, trend. Initial values indicate a ratio around 0.54 to 0.55 in the first four quarters of the observed timeframe. A modest increase is then noted, peaking at 0.60 in the fourth quarter of 2022 and maintained through the first three quarters of 2023.
- Overall Trend
- From the third quarter of 2023 through the first quarter of 2025, a consistent downward trend in the total asset turnover ratio is apparent. The ratio decreased from 0.59 to 0.50 over this period. The final reported value for the second quarter of 2025 shows a slight recovery to 0.51.
- Short-Term Fluctuations
- While the overall trend is downward, there are minor fluctuations within the period. For example, the ratio experienced a slight increase from 0.52 to 0.54 between the fourth quarter of 2023 and the first quarter of 2024. Similarly, a small increase is observed between the third and fourth quarters of 2024.
- Recent Performance
- The most recent quarters show the lowest values for the ratio. The ratio decreased from 0.52 in the third quarter of 2024 to 0.51 in the fourth quarter of 2024, and then to 0.50 in the first quarter of 2025, before a slight increase to 0.51 in the second quarter of 2025. This suggests a potential weakening in the efficiency of asset utilization in the most recent period.
The observed decline in the total asset turnover ratio warrants further investigation to determine the underlying causes. Potential factors could include changes in sales strategies, inventory management practices, or the composition of the asset base. The slight recovery in the most recent quarter is a positive sign, but continued monitoring is recommended.
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Equity Turnover
Honeywell International Inc., equity turnover calculation (quarterly data)
| 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 sales | 6,860) | 10,408) | 10,352) | 9,822) | 10,088) | 9,728) | 9,577) | 9,105) | 9,440) | 9,212) | 9,146) | 8,864) | 9,186) | 8,951) | 8,953) | 8,376) | |||||
| Total Honeywell shareowners’ equity | 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) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Equity turnover1 | 2.69 | 2.42 | 2.48 | 2.25 | 2.07 | 2.17 | 2.20 | 2.24 | 2.31 | 2.11 | 2.09 | 2.13 | 2.12 | 1.97 | 1.96 | 1.87 | |||||
| Benchmarks | |||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 16.40 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Caterpillar Inc. | 3.00 | 2.96 | 3.19 | 3.31 | 3.15 | 3.21 | 3.68 | 3.61 | 3.28 | 3.10 | 3.39 | 3.24 | 3.57 | 3.45 | 3.26 | 2.92 | |||||
| Eaton Corp. plc | 1.41 | 1.41 | 1.40 | 1.37 | 1.35 | 1.29 | 1.26 | 1.23 | 1.22 | 1.23 | 1.23 | 1.23 | 1.22 | 1.26 | 1.21 | 1.19 | |||||
| GE Aerospace | 2.27 | 2.14 | 1.98 | 1.87 | 1.82 | 2.32 | 2.76 | 1.97 | 2.36 | 2.34 | 2.21 | 2.24 | 2.02 | 2.29 | 2.06 | 1.82 | |||||
| Lockheed Martin Corp. | 11.17 | 11.87 | 13.47 | 10.75 | 11.22 | 9.90 | 11.51 | 10.47 | 9.89 | 7.30 | 7.29 | 6.86 | 7.12 | 5.41 | 5.61 | 6.57 | |||||
| RTX Corp. | 1.36 | 1.33 | 1.34 | 1.33 | 1.34 | 1.29 | 1.23 | 1.17 | 1.15 | 0.96 | 0.97 | 0.94 | 0.92 | 0.94 | 0.93 | 0.89 | |||||
Based on: 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 Q4 2025 Calculation
Equity turnover
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Total Honeywell shareowners’ equity
= (6,860 + 10,408 + 10,352 + 9,822)
÷ 13,904 = 2.69
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates a generally stable to increasing trend, with some fluctuation. Initially, the ratio exhibits a slight increase from 1.87 to 1.97 between March 31, 2022, and September 30, 2022. A more pronounced increase is then observed, reaching a peak of 2.31 by December 31, 2022. Following this peak, the ratio experiences a modest decline through June 30, 2024, settling at 2.20. The latter half of the period shows renewed growth, culminating in a ratio of 2.69 by December 31, 2025.
- Overall Trend
- The overall trend in equity turnover is positive, indicating increasing efficiency in generating sales relative to shareholder equity. The ratio nearly increases by 43.3% from the beginning of the period to the end.
- Short-Term Fluctuations
- While the overall trend is upward, short-term fluctuations are present. The decrease from 2.31 in December 2022 to 2.07 in December 2024 suggests periods where sales growth did not keep pace with equity levels, or equity decreased more rapidly than sales. However, these periods were followed by recovery and further growth.
- Recent Performance
- The most recent quarterly value, 2.69 as of December 31, 2025, represents the highest point in the observed period. This suggests a significant improvement in the company’s ability to generate sales from its equity base in the most recent quarter. The substantial drop in net sales in the final quarter of 2025 may have contributed to this elevated ratio, as the denominator (shareholder equity) also decreased.
- Relationship to Net Sales and Equity
- The equity turnover ratio is influenced by both net sales and total shareholder equity. Increases in the ratio can result from higher sales, decreases in equity, or a combination of both. The observed trend suggests that sales growth has generally been a primary driver, although fluctuations in equity also play a role, particularly evident in the period between December 2022 and December 2024.
In conclusion, the equity turnover ratio indicates improving efficiency in utilizing shareholder equity to generate sales over the analyzed period, despite some short-term variability. The recent peak suggests a potentially significant shift in operational efficiency or capital structure, though the impact of the substantial sales decrease in the final quarter should be considered.
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