Honeywell International Inc. (NASDAQ:HON)

Net Fixed Asset Turnover

The net fixed asset turnover ratio demonstrated an overall rising trend from March 2021 through September 2023, increasing from 5.88 to a peak of 6.64. This suggests improved efficiency in generating sales from net fixed assets during this period. However, after this peak, the ratio displayed a gradual decline through to September 2025, falling to 6.09. This deceleration may indicate a reduction in asset utilization efficiency or a relative increase in fixed asset base without a proportional rise in sales.

Total Asset Turnover

Total asset turnover showed a modest upward trajectory from 0.51 in March 2021 to a maximum of 0.60 in March 2023 and December 2023, reflecting enhanced effectiveness in using total assets to produce revenue. Post-December 2023, the ratio experienced a steady decline to 0.50 by September 2025, suggesting a decreasing ability to generate sales from the company's assets over this latter period.

Equity Turnover

The equity turnover ratio steadily increased from 1.81 in March 2021 to reach a high of 2.48 by June 2025. This indicates that the company increasingly generated more sales per unit of equity over time, reflecting improved equity utilization and potentially higher financial leverage or operational efficiency. Minor fluctuations were noted, but the general upward trend persisted through the full time range.

Net Sales Trend

The net sales figures demonstrate a generally upward trajectory from March 2021 through September 2025. Starting at approximately $8,454 million in the first quarter of 2021, sales increased intermittently, with some fluctuations, reaching around $10,408 million by the third quarter of 2025. Notable increases occurred particularly from late 2023 onward, indicating consistent revenue growth over the analyzed period.

Property, Plant, and Equipment (PP&E) Net Values

The net value of property, plant, and equipment experienced periods of both decline and growth. There was a slight decrease from about $5,547 million at the beginning of 2021 to approximately $5,342 million in mid-2022. From late 2022 onward, the PP&E balance steadily increased, rising significantly to roughly $6,681 million by the third quarter of 2025. This suggests a phase of expanded capital investment or asset acquisitions during the latter part of the timeframe.

Net Fixed Asset Turnover Analysis

The net fixed asset turnover ratio, which measures the efficiency of the company in utilizing its fixed assets to generate sales, shows minor fluctuations but remains relatively stable throughout the period. Beginning at about 5.88 in early 2021, the ratio peaked around 6.64 in the third quarter of 2023, reflecting improved asset use efficiency, before trending modestly downward to around 6.09 by the third quarter of 2025. The slight decline in recent quarters may reflect increasing asset bases outpacing sales growth or modestly reduced asset productivity.

Integrated Insights

The overall data indicates a company gradually expanding its asset base while maintaining robust sales growth. The decline in fixed asset turnover ratio in recent periods suggests that the increase in property, plant, and equipment is somewhat outpacing sales growth, which could imply periods of investment ahead of expected demand. The stable to slightly improving turnover ratio in prior periods reflects effective asset utilization, and continued revenue growth supports a positive outlook on operational efficiency.

Net Sales

Net sales exhibit a generally upward trend over the periods analyzed. Starting from $8,454 million in the first quarter of 2021, sales grew steadily with some fluctuations, reaching a peak of $10,408 million by the third quarter of 2025. Notable increases occurred during the second half of 2023 and throughout 2024, suggesting strengthening market demand or improved sales performance. Periodic dips, for instance in the first quarter of 2022 and the second quarter of 2024, indicate some seasonality or temporary market headwinds.

Total Assets

Total assets show a moderately fluctuating pattern across the timeframe. Initially stable near the $63,000 million range throughout 2021 and early 2022, assets declined somewhat into late 2022 and early 2023, bottoming around $59,883 million. Subsequently, a significant and sustained increase ensued starting mid-2023, culminating at approximately $80,917 million by the third quarter of 2025. This growth may reflect strategic asset acquisitions, capital investments, or balance sheet expansion.

Total Asset Turnover

The total asset turnover ratio, which measures sales generated per unit of assets, demonstrates a dynamic trend. It improved steadily from 0.51 in early 2021 to a high of 0.60 around the end of 2021 and early 2023 periods, indicating enhanced efficiency in asset utilization during these times. However, a gradual decline follows from mid-2023 through to late 2025, dropping to 0.50. This decline coincides with the increase in total assets, suggesting that asset growth outpaced sales increases, resulting in somewhat reduced asset efficiency in generating sales.

Overall Insights

The data reflects robust sales growth accompanied by substantial asset base expansion. The rise in total assets appears to outstrip sales growth, as evidenced by the decrease in total asset turnover in recent periods. This may indicate investments in capacity or other long-term assets that have yet to fully translate into proportional sales growth. The organization may benefit from focusing on improving asset utilization to maintain or enhance operational efficiency as it scales.

The analysis of the financial metrics over the observed periods reveals notable patterns in net sales, total shareowners’ equity, and equity turnover ratio.

Net Sales

Net sales exhibit a generally upward trend across the time frame. Starting around 8,454 million US dollars in the first quarter of 2021, sales fluctuate moderately but show a consistent increase from early 2023 onwards, reaching a peak above 10,000 million US dollars by the last recorded quarter of 2025. This increase signifies steady growth in revenue generation over the analyzed periods.

Total Honeywell Shareowners’ Equity

Total shareowners’ equity demonstrates a somewhat volatile pattern with periods of decline and recovery. Initially near 17,986 million US dollars in early 2021, equity fluctuates downward notably towards the end of 2022 and 2023, dropping to below 16,000 million dollars at certain points. However, it shows partial recovery at intervals, climbing back toward the 18,000 million mark in mid-2024 before again declining. This variability may reflect changes in retained earnings, dividends, or other equity movements during the periods.

Equity Turnover Ratio

The equity turnover ratio, measuring the efficiency of using equity to generate sales, displays an overall rising trend. Beginning at approximately 1.81 in early 2021, the ratio generally increases across the quarters, surpassing 2.4 by 2025. This indicates improved efficiency in leveraging shareowners’ equity to produce revenue, aligning with the observed growth in net sales despite fluctuations in total equity.

In summary, net sales have shown solid growth over the observed period, while total shareowners’ equity has experienced moderate fluctuations with some recovery periods. The equity turnover ratio has improved steadily, suggesting enhanced operational efficiency in utilizing equity to generate sales. These trends collectively indicate positive momentum in revenue growth and capital utilization efficiency, albeit with some variability in the equity base.