Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Common Stock Valuation Ratios
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
Honeywell International Inc., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrated a steady increase from 5.86 in 2020 to 6.48 in both 2022 and 2023, indicating improved efficiency in using fixed assets to generate revenue. However, in 2024, there was a slight decline to 6.22, suggesting a minor reduction in asset utilization efficiency compared to the peak years.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This metric showed a consistent upward trend from 5.15 in 2020 to 5.58 in 2022, reflecting enhanced asset use when accounting for operating leases and right-of-use assets. Nonetheless, similar to the net fixed asset turnover, it experienced a decline in 2023 and 2024, decreasing to 5.33 by the end of 2024, pointing to a reduction in efficiency in these years.
- Total Asset Turnover
- Total asset turnover improved steadily from 0.51 in 2020 to 0.6 in 2023, indicating growing effectiveness in asset management and revenue generation. Yet, this ratio reverted to 0.51 in 2024, suggesting a decrease in overall asset productivity to the initial year's level.
- Equity Turnover
- The equity turnover ratio remained relatively stable between 1.85 and 1.86 from 2020 to 2021, then rose significantly to 2.12 in 2022 and further to 2.31 in 2023. This trend reflects enhanced efficiency in the use of equity to produce revenue. In 2024, there was a decrease to 2.07, although it remained above the values recorded in the early years, indicating sustained but slightly reduced equity utilization efficiency.
Net Fixed Asset Turnover
Honeywell International Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several key trends over the analyzed five-year period. Net sales show a consistent upward trajectory, increasing steadily from $32,637 million in 2020 to $38,498 million in 2024. This indicates sustained revenue growth year-over-year, reflecting potential market expansion, improved sales performance, or successful product positioning.
Property, plant, and equipment (net) values demonstrate relative stability from 2020 through 2023, fluctuating slightly but remaining near the $5,500 to $5,600 million range. A notable increase occurs in 2024, reaching $6,194 million, signifying additional capital investments or asset acquisitions during that year.
The net fixed asset turnover ratio, which measures how efficiently fixed assets generate sales, indicates an overall positive trend from 5.86 in 2020 to 6.48 in both 2022 and 2023. This increase suggests improved utilization and efficiency of fixed assets over the early years. However, the ratio experiences a slight decline to 6.22 in 2024, coinciding with the rise in fixed asset base, which may imply that asset growth outpaced sales increases during that year or a short-term dip in asset efficiency.
- Net sales
- Consistent growth over five years, rising approximately 18% from 2020 to 2024.
- Property, plant and equipment, net
- Relatively stable for four years with a significant increase in 2024, possibly indicating new investments or upgrades.
- Net fixed asset turnover
- Improvement in asset efficiency from 2020 through 2023, followed by a modest decline in 2024, likely reflecting recent asset additions.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Honeywell International Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease right-of-use (ROU) assets (included in Other assets) | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- The net sales demonstrated a consistent upward trend from 2020 through 2024. Starting at $32,637 million in 2020, net sales steadily increased each year, reaching $38,498 million in 2024. This reflects a cumulative growth of approximately 18% over the five-year period, indicating sustained revenue expansion.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment exhibited moderate fluctuations but an overall increasing trend. Beginning at $6,343 million in 2020, the figure rose to $7,219 million by 2024. Although there was a slight decrease between 2021 and 2022, the asset base expanded notably from 2022 onward, suggesting ongoing capital investment or asset acquisition during the latter years.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, which measures the efficiency of using fixed assets to generate sales, showed variation across the observed years. It improved from 5.15 in 2020 to a peak of 5.58 in 2022, indicating increased efficiency in asset utilization. However, it slightly declined to 5.33 by 2024, which may suggest that the rate of asset growth outpaced sales growth in recent periods. Despite the decrease, the ratio in 2024 remains higher than in 2020, reflecting an overall favorable trend in asset productivity.
Total Asset Turnover
Honeywell International Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Total Asset Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several trends regarding the company's operational efficiency and asset management over the five-year period examined.
- Net Sales
- There is a consistent year-over-year increase in net sales from 32,637 million USD in 2020 to 38,498 million USD in 2024. This upward trend suggests steady growth in the company's revenue-generating activities over the period.
- Total Assets
- Total assets remained relatively stable from 2020 through 2023, fluctuating slightly around the mid-60,000 million USD range, with a slight decrease from 64,586 million USD in 2020 to 61,525 million USD in 2023. However, there is a marked increase in 2024, where total assets rise significantly to 75,196 million USD. This substantial asset growth might indicate recent investments, acquisitions, or expansion efforts.
- Total Asset Turnover
- The total asset turnover ratio improved steadily from 0.51 in 2020 to 0.60 in 2023, reflecting enhanced efficiency in utilizing assets to generate sales. In 2024, the ratio decreases to 0.51, aligning with the 2020 level. The decline in turnover in 2024, despite increased sales, can be attributed to the sharp rise in total assets, which has outpaced the growth in net sales for that year.
Overall, the company demonstrates ongoing revenue growth and improving asset efficiency until 2023. The spike in total assets in 2024 appears to have tempered the asset utilization ratio, suggesting a need to monitor how effectively the increased asset base translates into future sales growth.
Equity Turnover
Honeywell International Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Total Honeywell shareowners’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Capital Goods | ||||||
| Equity Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Equity turnover = Net sales ÷ Total Honeywell shareowners’ equity
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales have shown a consistent upward trend over the five-year period, increasing from $32,637 million in 2020 to $38,498 million in 2024. This reflects steady growth year-over-year, with the annual increase ranging between approximately 1,000 and 1,800 million dollars.
- Total Honeywell Shareowners’ Equity
- The total shareowners’ equity exhibited fluctuations throughout the period. It initially increased from $17,549 million in 2020 to $18,569 million in 2021 but experienced a notable decline in the following two years, decreasing to $16,697 million in 2022 and further to $15,856 million in 2023. In 2024, the equity rebounded to $18,619 million, surpassing the initial 2020 value. This pattern suggests variability in retained earnings or capital adjustments influencing the equity base.
- Equity Turnover Ratio
- The equity turnover ratio, measuring the efficiency of equity use to generate sales, showed improvement over the five years. Starting at 1.86 in 2020, it remained steady into 2021 at 1.85, then increased significantly to 2.12 in 2022 and peaked at 2.31 in 2023. In 2024, there was a slight decline to 2.07. Despite the decrease, the 2024 ratio remained higher than the initial values, indicating improved efficiency in equity utilization across the period.
- Overall Insights
- The data reveals consistent growth in net sales coupled with fluctuations in shareowners’ equity, which may be indicative of changes in dividend policies, share buybacks, or other equity-related activities. The rising equity turnover ratio suggests that the company has generally enhanced its ability to generate sales from its equity base, notwithstanding the temporary dip in equity levels during 2022 and 2023. The recovery in equity in 2024, alongside sustained sales growth, points to potential strategic adjustments enhancing financial stability and operational efficiency.