Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
Honeywell International Inc. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
- Analysis of Debt
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:
Profitability Ratios (Summary)
Honeywell International Inc., profitability ratios
Based on: 10-K (reporting date: 2025-12-31), 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).
The profitability metrics demonstrate a generally positive trend initially, followed by a moderation in later periods. Gross profit margin exhibited an increasing pattern from 2021 to 2024, peaking at 38.09% before decreasing to 36.93% in 2025. Operating profit margin showed a similar upward trajectory, increasing from 18.03% in 2021 to 19.33% in 2024, but experienced a substantial decline to 14.88% in 2025. Net profit margin fluctuated, decreasing from 16.11% in 2021 to 14.00% in 2022, then increasing to 15.43% in 2023, followed by a decrease to 14.82% in 2024 and a more pronounced drop to 12.63% in 2025.
- Return on Equity (ROE)
- Return on equity displayed volatility. It remained relatively stable between 2021 and 2022, then increased significantly to 35.68% in 2023. While decreasing to 30.64% in 2024, it rebounded to 34.01% in 2025, indicating continued, though fluctuating, effectiveness in generating profits from shareholder investments.
- Return on Assets (ROA)
- Return on assets followed a pattern of initial decline, followed by improvement and then a subsequent decrease. It decreased from 8.60% in 2021 to 7.97% in 2022, increased to 9.20% in 2023, and then decreased to 7.59% in 2024 and further to 6.42% in 2025. This suggests a diminishing ability to generate earnings from the company’s assets over the observed period.
The year 2025 appears to be a turning point, with declines observed in operating profit margin, net profit margin, and return on assets. While return on equity remained relatively high, the concurrent decreases in other key profitability indicators warrant further investigation to determine the underlying causes and potential implications for future performance.
Return on Sales
Return on Investment
Gross Profit Margin
Honeywell International Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
The gross profit margin exhibited an overall positive trend between 2021 and 2024, followed by a slight decrease in the most recent year presented. Gross profit increased consistently from 2021 to 2024, while net sales also demonstrated growth over the same period. This combination drove improvements in the gross profit margin.
- Gross Profit Margin Trend
- The gross profit margin increased from 35.85% in 2021 to 38.09% in 2024, representing a cumulative increase of 2.24 percentage points. This indicates improving efficiency in managing production costs or increased pricing power during this timeframe.
- Recent Performance (2024-2025)
- In 2025, the gross profit margin experienced a slight decline to 36.93%, a decrease of 1.16 percentage points from the peak in 2024. This decrease occurred alongside a reduction in net sales, while gross profit also decreased. This suggests potential pressures on cost of goods sold or pricing strategies in the latest period.
- Gross Profit and Net Sales Relationship
- Both gross profit and net sales increased between 2021 and 2024. The rate of increase in gross profit generally kept pace with, or slightly exceeded, the rate of increase in net sales, contributing to the rising gross profit margin. However, in 2025, both metrics decreased, indicating a potential shift in the company’s operational or market conditions.
The observed trend suggests a period of strengthening profitability followed by a recent moderation. Further investigation into the factors influencing the 2025 decline in both gross profit and net sales would be beneficial to understand the sustainability of the previously observed positive trend.
Operating Profit Margin
Honeywell International Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Operating Profit Margin, Sector | ||||||
| Capital Goods | ||||||
| Operating Profit Margin, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
The operating profit margin exhibited a generally positive trend from 2021 to 2023, followed by a significant decline in 2024 and 2025. Operating income increased steadily over the initial three-year period, while net sales also demonstrated consistent growth. However, the rate of increase in operating income outpaced that of net sales, contributing to margin expansion. The subsequent years reveal a shift in this dynamic.
- Operating Profit Margin Trend
- The operating profit margin increased from 18.03% in 2021 to 19.32% in 2023, representing a cumulative increase of 1.29 percentage points. This indicates improving operational efficiency and/or pricing power during this period. The margin remained relatively stable at 19.33% in 2024. A substantial decrease to 14.88% was then observed in 2025.
- Relationship between Operating Income and Net Sales
- From 2021 to 2023, operating income grew from US$6,200 million to US$7,084 million, while net sales increased from US$34,392 million to US$36,662 million. This suggests effective cost management or successful revenue generation strategies. In 2024, operating income continued to rise to US$7,441 million alongside net sales reaching US$38,498 million. However, in 2025, operating income decreased significantly to US$5,573 million, even as net sales experienced a slight decline to US$37,442 million. This divergence between operating income and net sales is the primary driver of the margin contraction in 2025.
The decline in operating profit margin in 2025 warrants further investigation. Potential contributing factors could include increased operating expenses, reduced pricing power, or a shift in the sales mix towards lower-margin products or services. The consistency of growth in the earlier period suggests a strong underlying business, but the 2025 results indicate emerging challenges to profitability.
Net Profit Margin
Honeywell International Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Honeywell | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Profit Margin, Sector | ||||||
| Capital Goods | ||||||
| Net Profit Margin, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net profit margin = 100 × Net income attributable to Honeywell ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
The net profit margin exhibited fluctuations over the five-year period. Initial values demonstrated a generally positive, though variable, performance, followed by a decline in the most recent year observed.
- Overall Trend
- The net profit margin began at 16.11% in 2021, decreased to 14.00% in 2022, then increased to 15.43% in 2023 and remained relatively stable at 14.82% in 2024. A notable decrease to 12.63% was observed in 2025.
- Year-over-Year Changes
- From 2021 to 2022, the net profit margin experienced a decrease of 2.11 percentage points. A subsequent increase of 1.43 percentage points occurred between 2022 and 2023. The change from 2023 to 2024 was minimal, increasing by only 0.61 percentage points. The largest year-over-year decrease occurred between 2024 and 2025, with a reduction of 2.19 percentage points.
- Relationship to Net Income and Net Sales
- Net income attributable to Honeywell increased from US$5,542 million in 2021 to US$5,658 million in 2023, before decreasing to US$4,729 million in 2025. Net sales also generally increased, moving from US$34,392 million in 2021 to US$38,498 million in 2024, and then decreasing to US$37,442 million in 2025. The decline in net profit margin in 2025, despite a relatively small decrease in net sales, suggests that costs or other factors impacting profitability increased disproportionately to revenue.
The observed volatility in the net profit margin warrants further investigation to determine the underlying drivers of these changes. A comprehensive analysis of cost of goods sold, operating expenses, and other income statement items would be necessary to fully understand the fluctuations.
Return on Equity (ROE)
Honeywell International Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Honeywell | ||||||
| Total Honeywell shareowners’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| ROE, Sector | ||||||
| Capital Goods | ||||||
| ROE, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
ROE = 100 × Net income attributable to Honeywell ÷ Total Honeywell shareowners’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited fluctuations over the five-year period. Net income attributable to Honeywell and total Honeywell shareowners’ equity both influenced the observed ROE values.
- Overall Trend
- The ROE demonstrated a generally strong performance, remaining above 29% throughout the period. However, it was not consistently increasing, showing both peaks and valleys.
- Year-over-Year Analysis
- In 2022, the ROE remained relatively stable, decreasing slightly from 29.85% in 2021 to 29.74%. A significant increase was then observed in 2023, with the ROE reaching 35.68%. This increase coincided with a rise in net income. The ROE then decreased to 30.64% in 2024, despite a further increase in net income, likely due to a larger increase in shareowners’ equity. Finally, in 2025, the ROE increased to 34.01%, despite a decrease in net income, as shareowners’ equity experienced a more substantial decline.
- Net Income and Equity Relationship
- The relationship between net income and shareowners’ equity appears to be a key driver of ROE fluctuations. While increases in net income generally supported higher ROE values, changes in shareowners’ equity often moderated or even reversed these effects. The substantial decrease in shareowners’ equity in 2025, despite lower net income, resulted in a notable increase in ROE.
The observed volatility in ROE suggests that Honeywell’s profitability is sensitive to changes in both its earnings and its equity base. Further investigation into the factors driving these changes in equity, such as share repurchases or dividend payments, may provide additional insights.
Return on Assets (ROA)
Honeywell International Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Honeywell | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| ROA, Sector | ||||||
| Capital Goods | ||||||
| ROA, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
ROA = 100 × Net income attributable to Honeywell ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited fluctuating performance over the five-year period. Initial values demonstrated a generally positive return, followed by a period of decline and subsequent stabilization. A detailed examination of the ROA alongside its constituent components reveals key insights into the company’s asset utilization efficiency.
- Overall Trend
- The ROA began at 8.60% in 2021, decreased to 7.97% in 2022, then increased to a peak of 9.20% in 2023. A subsequent decline was observed in 2024, with the ROA falling to 7.59%, and continued downward in 2025 to 6.42%.
- Net Income Influence
- Net income attributable to Honeywell showed a decrease from US$5,542 million in 2021 to US$4,966 million in 2022, contributing to the initial ROA decline. The subsequent increase in net income to US$5,658 million in 2023 drove the ROA upward. While net income remained relatively stable in 2024 at US$5,705 million, the ROA decreased, indicating that changes in total assets had a more significant impact. The decline in net income to US$4,729 million in 2025 further contributed to the ROA decrease.
- Asset Base Impact
- Total assets decreased from US$64,470 million in 2021 to US$62,275 million in 2022, which partially offset the decline in net income and limited the ROA decrease. Assets continued to decrease to US$61,525 million in 2023, but the larger increase in net income resulted in a higher ROA. A substantial increase in total assets to US$75,196 million in 2024, despite a relatively stable net income, led to a noticeable decrease in ROA. The asset base decreased slightly in 2025 to US$73,681 million, but the concurrent decrease in net income resulted in a further decline in ROA.
The fluctuations in ROA suggest a complex interplay between profitability and asset management. While net income plays a role, the significant changes in total assets appear to have a more pronounced effect on the ROA. The increase in assets in 2024, without a corresponding increase in net income, demonstrates a potential dilution of returns. Continued monitoring of both net income and asset levels is recommended to understand the underlying drivers of ROA performance.