Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Honeywell International Inc., profitability ratios
Based on: 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), 10-K (reporting date: 2019-12-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Honeywell International Inc. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Honeywell International Inc. operating profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Honeywell International Inc. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Honeywell International Inc. ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Honeywell International Inc. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Gross Profit Margin
Honeywell International Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 13,667) | 13,119) | 12,331) | 10,468) | 12,370) | |
| Net sales | 36,662) | 35,466) | 34,392) | 32,637) | 36,709) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 37.28% | 36.99% | 35.85% | 32.07% | 33.70% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Boeing Co. | 9.93% | 5.26% | 4.84% | -9.78% | 5.83% | |
| Caterpillar Inc. | 33.04% | 26.91% | 26.30% | 25.47% | 27.83% | |
| Cummins Inc. | 24.22% | 23.93% | 23.71% | 24.70% | 25.37% | |
| Eaton Corp. plc | 36.36% | 33.19% | 32.28% | 30.52% | 32.97% | |
| General Electric Co. | 21.95% | 24.55% | 24.19% | 17.26% | 23.52% | |
| Lockheed Martin Corp. | 12.55% | 12.56% | 13.52% | 13.23% | 13.99% | |
| RTX Corp. | 17.54% | 20.38% | 19.40% | 15.08% | 25.93% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 13,667 ÷ 36,662 = 37.28%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Honeywell International Inc. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Operating Profit Margin
Honeywell International Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 7,084) | 6,427) | 6,200) | 5,696) | 6,851) | |
| Net sales | 36,662) | 35,466) | 34,392) | 32,637) | 36,709) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 19.32% | 18.12% | 18.03% | 17.45% | 18.66% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Boeing Co. | -0.99% | -5.33% | -4.66% | -21.95% | -2.58% | |
| Caterpillar Inc. | 20.30% | 13.97% | 14.27% | 11.67% | 16.33% | |
| Cummins Inc. | 5.17% | 10.43% | 11.27% | 11.45% | 11.45% | |
| Eaton Corp. plc | 16.75% | 14.55% | 15.69% | 11.45% | 13.38% | |
| General Electric Co. | 8.49% | 6.05% | 8.58% | 5.49% | 12.84% | |
| Lockheed Martin Corp. | 12.59% | 12.65% | 13.61% | 13.22% | 14.29% | |
| RTX Corp. | 5.17% | 8.07% | 7.70% | -3.34% | 11.64% | |
| Operating Profit Margin, Sector | ||||||
| Capital Goods | 9.73% | 8.44% | 9.24% | 3.47% | 10.96% | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 9.82% | 9.38% | 9.86% | 4.69% | 9.74% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 7,084 ÷ 36,662 = 19.32%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Honeywell International Inc. operating profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Net Profit Margin
Honeywell International Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Honeywell | 5,658) | 4,966) | 5,542) | 4,779) | 6,143) | |
| Net sales | 36,662) | 35,466) | 34,392) | 32,637) | 36,709) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 15.43% | 14.00% | 16.11% | 14.64% | 16.73% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Boeing Co. | -2.86% | -7.41% | -6.75% | -20.42% | -0.83% | |
| Caterpillar Inc. | 16.18% | 11.85% | 13.47% | 7.68% | 12.00% | |
| Cummins Inc. | 2.16% | 7.66% | 8.87% | 9.03% | 9.59% | |
| Eaton Corp. plc | 13.87% | 11.86% | 10.92% | 7.90% | 10.34% | |
| General Electric Co. | 14.68% | 0.31% | -9.17% | 7.81% | -5.69% | |
| Lockheed Martin Corp. | 10.24% | 8.69% | 9.42% | 10.45% | 10.42% | |
| RTX Corp. | 4.64% | 7.75% | 6.00% | -6.22% | 7.19% | |
| Net Profit Margin, Sector | ||||||
| Capital Goods | 8.55% | 5.43% | 4.03% | 2.24% | 5.28% | |
| Net Profit Margin, Industry | ||||||
| Industrials | 8.28% | 5.38% | 6.53% | 1.71% | 4.12% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net profit margin = 100 × Net income attributable to Honeywell ÷ Net sales
= 100 × 5,658 ÷ 36,662 = 15.43%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Honeywell International Inc. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Return on Equity (ROE)
Honeywell International Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Honeywell | 5,658) | 4,966) | 5,542) | 4,779) | 6,143) | |
| Total Honeywell shareowners’ equity | 15,856) | 16,697) | 18,569) | 17,549) | 18,494) | |
| Profitability Ratio | ||||||
| ROE1 | 35.68% | 29.74% | 29.85% | 27.23% | 33.22% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 53.02% | 42.25% | 39.37% | 19.56% | 41.77% | |
| Cummins Inc. | 8.31% | 23.97% | 25.15% | 22.19% | 30.11% | |
| Eaton Corp. plc | 16.90% | 14.45% | 13.06% | 9.44% | 13.75% | |
| General Electric Co. | 34.63% | 0.62% | -16.17% | 16.04% | -17.58% | |
| Lockheed Martin Corp. | 101.24% | 61.86% | 57.62% | 113.60% | 199.23% | |
| RTX Corp. | 5.34% | 7.16% | 5.29% | -4.88% | 13.25% | |
| ROE, Sector | ||||||
| Capital Goods | 26.65% | 13.98% | 9.31% | 5.37% | 18.85% | |
| ROE, Industry | ||||||
| Industrials | 26.86% | 15.87% | 16.89% | 4.68% | 14.46% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
ROE = 100 × Net income attributable to Honeywell ÷ Total Honeywell shareowners’ equity
= 100 × 5,658 ÷ 15,856 = 35.68%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Honeywell International Inc. ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Return on Assets (ROA)
Honeywell International Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Honeywell | 5,658) | 4,966) | 5,542) | 4,779) | 6,143) | |
| Total assets | 61,525) | 62,275) | 64,470) | 64,586) | 58,679) | |
| Profitability Ratio | ||||||
| ROA1 | 9.20% | 7.97% | 8.60% | 7.40% | 10.47% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Boeing Co. | -1.62% | -3.60% | -3.03% | -7.80% | -0.48% | |
| Caterpillar Inc. | 11.81% | 8.18% | 7.84% | 3.83% | 7.77% | |
| Cummins Inc. | 2.30% | 7.10% | 8.99% | 7.91% | 11.45% | |
| Eaton Corp. plc | 8.37% | 7.03% | 6.30% | 4.43% | 6.74% | |
| General Electric Co. | 5.81% | 0.12% | -3.28% | 2.25% | -1.87% | |
| Lockheed Martin Corp. | 13.19% | 10.84% | 12.41% | 13.47% | 13.11% | |
| RTX Corp. | 1.97% | 3.27% | 2.39% | -2.17% | 3.96% | |
| ROA, Sector | ||||||
| Capital Goods | 5.09% | 3.02% | 2.09% | 1.00% | 2.94% | |
| ROA, Industry | ||||||
| Industrials | 5.64% | 3.57% | 3.95% | 0.89% | 2.57% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
ROA = 100 × Net income attributable to Honeywell ÷ Total assets
= 100 × 5,658 ÷ 61,525 = 9.20%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Honeywell International Inc. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |