Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Honeywell International Inc., profitability 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).
Honeywell demonstrates generally positive profitability trends over the observed period, though recent quarters indicate potential shifts. Gross profit margin exhibited consistent growth from the first quarter of 2022 through the fourth quarter of 2024, peaking at 38.09%, before experiencing a decline in the final two quarters of the analyzed timeframe. Operating profit margin followed a similar pattern, with substantial improvement from 2022 to 2023, reaching a high of 20.09% in the third quarter of 2023, followed by a more pronounced decrease in the final quarter of 2025. Net profit margin also showed improvement through 2024, but experienced a notable drop in the last two quarters, mirroring the trend observed in operating profit margin.
- Gross Profit Margin
- The gross profit margin consistently increased from 32.95% in March 2022 to 38.09% in December 2024, indicating improved efficiency in production and cost of goods sold management. However, a decline to 36.94% and 36.93% in September and December 2025 suggests potential pressures on input costs or pricing strategies.
- Operating Profit Margin
- A clear upward trend in operating profit margin is visible from 17.37% in March 2022 to 20.09% in September 2023, suggesting effective control of operating expenses relative to revenue. The subsequent decrease to 14.88% in December 2025 is a significant shift and warrants further investigation into potential factors such as increased administrative costs, marketing expenses, or research and development investments.
- Net Profit Margin
- Net profit margin generally tracked the trends of gross and operating profit margins, increasing from 15.30% to 15.52% in March 2024. The decline to 12.63% in December 2025 is substantial and could be attributed to factors impacting both operational efficiency and potentially non-operating items like interest expense or taxes.
- Return on Equity (ROE)
- Return on equity demonstrated strong performance, increasing from 28.58% in March 2022 to a peak of 36.52% in September 2025. While generally positive, the decrease to 34.01% in December 2025, coinciding with the declines in profit margins, suggests a potential weakening in the company’s ability to generate profits from shareholder investments.
- Return on Assets (ROA)
- Return on assets showed a moderate increase from 8.29% in March 2022 to 8.83% in September 2023, indicating improved efficiency in utilizing assets to generate earnings. The subsequent decline to 6.42% in December 2025 aligns with the observed decreases in profitability metrics and suggests a diminishing return on asset utilization.
Overall, the observed trends indicate a period of strong profitability growth followed by a concerning decline in the most recent quarters. The simultaneous decrease across multiple profitability ratios suggests a systemic issue rather than isolated incidents, requiring further analysis 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 (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) | |||||||||||||||||||||
| Gross profit | 2,474) | 3,547) | 4,023) | 3,785) | 3,670) | 3,749) | 3,721) | 3,522) | 3,239) | 3,542) | 3,520) | 3,366) | 3,417) | 3,357) | 3,293) | 3,052) | |||||
| 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) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Gross profit margin1 | 36.93% | 36.94% | 38.08% | 38.06% | 38.09% | 37.60% | 37.56% | 37.46% | 37.28% | 38.03% | 37.79% | 37.36% | 36.99% | 35.56% | 34.22% | 32.95% | |||||
| Benchmarks | |||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 4.79% | 1.10% | -0.32% | -2.09% | -2.99% | 3.13% | 9.47% | 10.04% | 9.93% | 9.09% | 6.65% | 7.20% | 5.26% | -1.41% | 2.74% | 3.20% | |||||
| Caterpillar Inc. | 30.05% | 31.65% | 32.64% | 33.92% | 34.49% | 34.33% | 34.29% | 33.59% | 33.04% | 31.71% | 30.44% | 28.74% | 26.91% | 26.14% | 25.52% | 25.71% | |||||
| Eaton Corp. plc | 37.59% | 38.10% | 38.16% | 38.45% | 38.20% | 37.83% | 37.53% | 37.06% | 36.36% | 35.54% | 34.51% | 33.64% | 33.19% | 32.83% | 32.55% | 32.36% | |||||
| GE Aerospace | 31.55% | 32.16% | 31.98% | 31.87% | 30.79% | 27.00% | 24.74% | 22.97% | 21.95% | 23.26% | 23.29% | 24.24% | 24.55% | 24.52% | 25.22% | 24.26% | |||||
| Lockheed Martin Corp. | 10.15% | 8.16% | 8.16% | 10.11% | 9.75% | 11.97% | 11.91% | 12.10% | 12.55% | 12.54% | 12.70% | 12.74% | 12.56% | 12.99% | 13.39% | 13.36% | |||||
| RTX Corp. | 20.08% | 20.13% | 20.05% | 19.53% | 19.09% | 19.21% | 16.38% | 17.01% | 17.54% | 17.36% | 20.43% | 20.53% | 20.38% | 20.49% | 20.17% | 19.94% | |||||
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
Gross profit margin = 100
× (Gross profitQ4 2025
+ Gross profitQ3 2025
+ Gross profitQ2 2025
+ Gross profitQ1 2025)
÷ (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
= 100 × (2,474 + 3,547 + 4,023 + 3,785)
÷ (6,860 + 10,408 + 10,352 + 9,822)
= 36.93%
2 Click competitor name to see calculations.
The gross profit margin exhibited an overall upward trend from March 31, 2022, to September 30, 2024, followed by a decline in the subsequent periods. Fluctuations occurred throughout the observed timeframe, indicating sensitivity to underlying factors impacting revenue and cost of goods sold.
- Initial Growth Phase (Mar 31, 2022 – Sep 30, 2024)
- The gross profit margin increased consistently from 32.95% in March 2022 to 38.03% in September 2024. This suggests improving efficiency in production, better pricing strategies, or a shift towards higher-margin products during this period. The rate of increase was most pronounced between March 2022 and December 2022, indicating a potentially significant positive shift in cost management or sales mix.
- Plateau and Subsequent Decline (Dec 31, 2024 – Dec 31, 2025)
- Following the peak in September 2024, the gross profit margin experienced a decline. It decreased to 36.94% by September 30, 2025, and further decreased to 36.93% by December 31, 2025. This suggests increasing costs of goods sold, pricing pressures, or a change in the product mix towards lower-margin items. The most substantial decrease occurred between September 30, 2025, and December 31, 2025, warranting further investigation.
- Gross Profit and Net Sales Correlation
- A review of the gross profit and net sales figures reveals a general correlation. Increases in net sales often coincided with increases in gross profit, and vice versa. However, the magnitude of the changes in gross profit did not always directly correspond to the changes in net sales, indicating that factors beyond revenue volume, such as cost control, played a significant role in the gross profit margin.
- Recent Performance
- The gross profit margin for the most recent period, December 31, 2025, stood at 36.93%. This represents a notable decrease from the high of 38.03% observed in September 2024. The substantial drop in net sales during this period, from 10,408 to 6,860, likely contributed significantly to the reduced gross profit and margin.
Overall, the gross profit margin demonstrated a period of strong growth followed by a recent decline. The fluctuations suggest the company’s profitability is subject to external and internal factors, and continued monitoring is recommended to understand the drivers behind these changes.
Operating Profit Margin
Honeywell International Inc., operating profit margin 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) | |||||||||||||||||||||
| Operating income | (265) | 1,754) | 2,114) | 1,970) | 1,745) | 1,858) | 1,978) | 1,860) | 1,583) | 1,926) | 1,883) | 1,692) | 1,813) | 1,742) | 1,601) | 1,271) | |||||
| 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) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | 14.88% | 18.65% | 19.22% | 19.26% | 19.33% | 19.23% | 19.68% | 19.65% | 19.32% | 20.09% | 19.73% | 19.05% | 18.12% | 17.55% | 17.31% | 17.37% | |||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 4.79% | -10.24% | -12.27% | -14.63% | -16.10% | -9.08% | -2.31% | -0.93% | -0.99% | -1.86% | -4.62% | -3.58% | -5.33% | -11.99% | -6.98% | -6.53% | |||||
| Caterpillar Inc. | 17.43% | 18.68% | 19.31% | 20.29% | 21.30% | 21.33% | 21.55% | 21.58% | 20.30% | 18.13% | 16.97% | 14.94% | 13.97% | 14.56% | 13.81% | 13.87% | |||||
| Eaton Corp. plc | 18.98% | 18.95% | 18.82% | 19.08% | 18.62% | 18.23% | 17.96% | 17.28% | 16.75% | 16.28% | 15.48% | 14.85% | 14.55% | 13.90% | 16.33% | 15.97% | |||||
| GE Aerospace | 26.03% | 26.24% | 25.57% | 25.46% | 23.29% | 16.88% | 13.80% | 10.44% | 8.49% | 8.08% | 6.92% | 7.40% | 6.05% | 7.05% | 8.12% | 7.31% | |||||
| Lockheed Martin Corp. | 10.30% | 8.31% | 8.29% | 10.24% | 9.87% | 12.08% | 11.98% | 12.20% | 12.59% | 12.57% | 12.80% | 12.78% | 12.65% | 13.15% | 13.47% | 13.50% | |||||
| RTX Corp. | 10.50% | 10.25% | 9.95% | 8.20% | 8.10% | 7.94% | 3.94% | 5.32% | 5.17% | 4.79% | 8.63% | 8.73% | 8.07% | 7.93% | 7.81% | 7.75% | |||||
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
Operating profit margin = 100
× (Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025
+ Operating incomeQ1 2025)
÷ (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
= 100 × (-265 + 1,754 + 2,114 + 1,970)
÷ (6,860 + 10,408 + 10,352 + 9,822)
= 14.88%
2 Click competitor name to see calculations.
The operating profit margin exhibited a generally positive trend from March 31, 2022, through September 30, 2023, followed by a period of fluctuation and a significant decline in the most recent quarter. Initial values were in the mid-17% range, increasing to over 20% before experiencing volatility and ultimately a substantial decrease.
- Overall Trend
- From the first quarter of 2022 to the third quarter of 2023, the operating profit margin demonstrated consistent growth. This indicates improving operational efficiency or pricing power during this period. However, the fourth quarter of 2023 saw a decrease, and this pattern of fluctuation continued through the first three quarters of 2024. The final quarter of 2025 reveals a marked decline to 14.88%, significantly lower than previous levels.
- Growth Phase (Q1 2022 - Q3 2023)
- The operating profit margin increased from 17.37% in March 2022 to a peak of 20.09% in September 2023. This represents a roughly 16% relative increase over this timeframe. The consistent upward movement suggests successful cost management, increased sales volume, or favorable pricing strategies.
- Period of Fluctuation (Q4 2023 - Q3 2024)
- Following the peak in September 2023, the operating profit margin experienced volatility, ranging from 19.32% to 19.68%. While remaining relatively high, this period indicates a stabilization after the previous growth phase, or potentially the impact of emerging challenges to profitability. The margin remained above 19% throughout this period.
- Significant Decline (Q4 2025)
- The operating profit margin experienced a substantial decrease to 14.88% in December 2025. This represents a significant drop from the preceding quarters and warrants further investigation. Potential causes could include increased costs, decreased sales, unfavorable pricing pressures, or one-time events negatively impacting profitability. The negative operating income reported for this period confirms substantial challenges.
- Relationship to Net Sales
- Net sales generally increased from March 2022 through September 2025, but experienced a dramatic decrease in the final quarter of 2025. While the operating profit margin initially increased alongside net sales, the recent decline in margin is not solely attributable to sales volume, as the significant margin compression occurred despite relatively strong sales figures in the preceding quarters. The sharp decline in both operating income and net sales in the final quarter suggests a systemic issue impacting overall financial performance.
Further analysis is recommended to understand the drivers behind the recent decline in operating profit margin and the substantial decrease in operating income during the final quarter of 2025. Investigating cost structures, pricing strategies, and competitive pressures would be beneficial.
Net Profit Margin
Honeywell International Inc., net profit margin 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 income attributable to Honeywell | (115) | 1,825) | 1,570) | 1,449) | 1,285) | 1,413) | 1,544) | 1,463) | 1,263) | 1,514) | 1,487) | 1,394) | 1,019) | 1,552) | 1,261) | 1,134) | |||||
| 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) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | 12.63% | 15.07% | 14.30% | 14.51% | 14.82% | 15.01% | 15.49% | 15.52% | 15.43% | 14.87% | 15.08% | 14.54% | 14.00% | 15.38% | 14.74% | 15.30% | |||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 2.50% | -12.20% | -14.18% | -16.58% | -17.77% | -10.88% | -4.68% | -2.81% | -2.86% | -3.74% | -6.08% | -5.86% | -7.41% | -13.75% | -8.69% | -8.00% | |||||
| Caterpillar Inc. | 13.89% | 15.17% | 15.83% | 16.63% | 17.59% | 17.15% | 17.46% | 17.65% | 16.18% | 14.35% | 13.53% | 12.10% | 11.85% | 13.70% | 13.19% | 13.02% | |||||
| Eaton Corp. plc | 14.89% | 14.74% | 15.11% | 15.55% | 15.25% | 15.31% | 15.12% | 14.38% | 13.87% | 13.24% | 12.30% | 12.00% | 11.86% | 11.36% | 11.70% | 11.21% | |||||
| GE Aerospace | 20.57% | 19.99% | 20.43% | 19.41% | 18.67% | 14.28% | 9.25% | 5.96% | 14.68% | 15.08% | 13.91% | 12.35% | 0.31% | -8.10% | -6.18% | -6.70% | |||||
| Lockheed Martin Corp. | 6.69% | 5.73% | 5.85% | 7.66% | 7.51% | 9.36% | 9.48% | 9.73% | 10.24% | 10.29% | 10.48% | 8.60% | 8.69% | 9.07% | 7.33% | 9.45% | |||||
| RTX Corp. | 7.60% | 7.67% | 7.35% | 5.63% | 5.91% | 5.97% | 3.12% | 4.90% | 4.64% | 4.76% | 7.88% | 8.08% | 7.75% | 6.76% | 6.84% | 6.47% | |||||
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 profit margin = 100
× (Net income attributable to HoneywellQ4 2025
+ Net income attributable to HoneywellQ3 2025
+ Net income attributable to HoneywellQ2 2025
+ Net income attributable to HoneywellQ1 2025)
÷ (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
= 100 × (-115 + 1,825 + 1,570 + 1,449)
÷ (6,860 + 10,408 + 10,352 + 9,822)
= 12.63%
2 Click competitor name to see calculations.
The net profit margin exhibited fluctuations over the observed period, generally remaining within a relatively narrow range. An initial decline from 15.30% in March 2022 to 14.00% in December 2022 is followed by a period of relative stability and modest increases through September 2023. The final period shows a significant decrease in the net profit margin.
- Overall Trend
- From March 2022 through September 2023, the net profit margin demonstrated a generally stable performance, oscillating between approximately 14.50% and 15.50%. However, a substantial decrease to 12.63% is observed in December 2025, indicating a potential shift in profitability.
- Short-Term Fluctuations (2022-2023)
- The net profit margin began at 15.30% in March 2022, decreased to 14.74% in June 2022, and then increased to 15.38% in September 2022. A decline to 14.00% occurred in December 2022. The margin then recovered, reaching 15.43% in December 2023.
- Recent Performance (2024-2025)
- The net profit margin remained relatively consistent in 2024, fluctuating between 15.01% and 15.52%. However, a marked decrease to 12.63% occurred in December 2025. This represents the lowest margin observed throughout the entire period and warrants further investigation.
- Relationship to Net Sales
- While net sales generally increased throughout the period, the net profit margin did not consistently follow suit. The decrease in margin in December 2025 occurred despite a significant, though lower than previous quarters, level of net sales, suggesting that factors beyond revenue generation impacted profitability. The substantial drop in net sales in December 2025 is accompanied by a significant drop in net profit margin.
The observed trends suggest a period of consistent profitability followed by a notable decline in the most recent quarter. Further analysis is required to determine the underlying causes of this decline, including potential increases in costs, changes in pricing strategies, or other operational factors.
Return on Equity (ROE)
Honeywell International Inc., ROE 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 income attributable to Honeywell | (115) | 1,825) | 1,570) | 1,449) | 1,285) | 1,413) | 1,544) | 1,463) | 1,263) | 1,514) | 1,487) | 1,394) | 1,019) | 1,552) | 1,261) | 1,134) | |||||
| 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) | |||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | 34.01% | 36.52% | 35.52% | 32.59% | 30.64% | 32.65% | 34.13% | 34.81% | 35.68% | 31.42% | 31.52% | 30.89% | 29.74% | 30.36% | 28.96% | 28.58% | |||||
| Benchmarks | |||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 40.98% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Caterpillar Inc. | 41.67% | 44.89% | 50.57% | 55.01% | 55.37% | 55.04% | 64.26% | 63.77% | 53.02% | 44.48% | 45.85% | 39.18% | 42.25% | 47.28% | 42.96% | 38.07% | |||||
| Eaton Corp. plc | 21.04% | 20.84% | 21.10% | 21.27% | 20.52% | 19.71% | 18.99% | 17.63% | 16.90% | 16.29% | 15.10% | 14.72% | 14.45% | 14.26% | 14.12% | 13.35% | |||||
| GE Aerospace | 46.60% | 42.86% | 40.54% | 36.34% | 33.90% | 33.11% | 25.51% | 11.77% | 34.63% | 35.27% | 30.77% | 27.72% | 0.62% | -18.56% | -12.75% | -12.20% | |||||
| Lockheed Martin Corp. | 74.65% | 67.95% | 78.82% | 82.34% | 84.26% | 92.71% | 109.09% | 101.89% | 101.24% | 75.11% | 76.41% | 58.97% | 61.86% | 49.05% | 41.16% | 62.10% | |||||
| RTX Corp. | 10.32% | 10.22% | 9.85% | 7.48% | 7.94% | 7.72% | 3.83% | 5.75% | 5.34% | 4.59% | 7.67% | 7.61% | 7.16% | 6.36% | 6.34% | 5.79% | |||||
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
ROE = 100
× (Net income attributable to HoneywellQ4 2025
+ Net income attributable to HoneywellQ3 2025
+ Net income attributable to HoneywellQ2 2025
+ Net income attributable to HoneywellQ1 2025)
÷ Total Honeywell shareowners’ equity
= 100 × (-115 + 1,825 + 1,570 + 1,449)
÷ 13,904 = 34.01%
2 Click competitor name to see calculations.
The Return on Equity (ROE) for the analyzed period demonstrates a generally strong and positive performance, with some fluctuations. Overall, the ROE remained consistently above 28% throughout the majority of the observed timeframe, indicating efficient generation of profit from shareholder investment.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The ROE exhibited a slight increasing trend from 28.58% in March 2022 to 30.36% in September 2022, before decreasing to 29.74% by the end of the year. This suggests a period of relatively stable profitability with a minor peak in the third quarter.
- Growth Phase (Mar 31, 2023 – Sep 30, 2023)
- A clear upward trend in ROE is observed from March 2023 through September 2023, rising from 30.89% to 36.52%. This indicates a significant improvement in profitability during this period, potentially driven by increased net income and/or efficient capital management.
- Recent Performance (Dec 31, 2023 – Dec 31, 2025)
- The ROE peaked at 35.68% in December 2023, followed by a decline to 34.01% in December 2025. While still remaining at a healthy level, this represents a decrease from the prior high. Notably, the final period shows a substantial negative net income, resulting in an ROE of 34.01% despite the decrease in equity. This suggests a significant event impacted net income in the final quarter.
- Overall Trend
- Despite the recent decline, the ROE generally trended upwards from early 2022 through late 2023. The final period indicates a potential shift in performance, requiring further investigation into the factors contributing to the negative net income and its impact on shareholder returns.
The fluctuations in ROE appear to correlate with changes in net income attributable to the company, although the impact of changes in total shareowners’ equity also plays a role. The substantial decrease in equity in the final period, coupled with negative net income, warrants further scrutiny to understand the underlying causes and potential implications for future performance.
Return on Assets (ROA)
Honeywell International Inc., ROA 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 income attributable to Honeywell | (115) | 1,825) | 1,570) | 1,449) | 1,285) | 1,413) | 1,544) | 1,463) | 1,263) | 1,514) | 1,487) | 1,394) | 1,019) | 1,552) | 1,261) | 1,134) | |||||
| 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) | |||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | 6.42% | 7.57% | 7.29% | 7.57% | 7.59% | 7.73% | 8.34% | 8.72% | 9.20% | 8.83% | 8.75% | 8.73% | 7.97% | 8.92% | 8.16% | 8.29% | |||||
| Benchmarks | |||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 1.33% | -6.57% | -6.89% | -7.36% | -7.56% | -5.79% | -2.41% | -1.60% | -1.62% | -2.11% | -3.32% | -3.03% | -3.60% | -6.14% | -3.90% | -3.60% | |||||
| Caterpillar Inc. | 9.01% | 9.89% | 10.45% | 11.70% | 12.30% | 12.38% | 13.21% | 13.43% | 11.81% | 10.50% | 9.79% | 8.50% | 8.18% | 9.11% | 8.33% | 7.90% | |||||
| Eaton Corp. plc | 9.91% | 9.66% | 9.69% | 10.04% | 9.89% | 9.60% | 9.27% | 8.83% | 8.37% | 8.03% | 7.37% | 7.23% | 7.03% | 6.67% | 6.58% | 6.30% | |||||
| GE Aerospace | 6.69% | 6.29% | 6.19% | 5.64% | 5.32% | 4.93% | 3.85% | 2.14% | 5.81% | 6.45% | 5.89% | 5.33% | 0.12% | -3.23% | -2.38% | -2.48% | |||||
| Lockheed Martin Corp. | 8.38% | 6.97% | 7.14% | 9.71% | 9.59% | 12.02% | 12.23% | 12.33% | 13.19% | 12.29% | 12.39% | 10.41% | 10.84% | 11.28% | 9.09% | 12.06% | |||||
| RTX Corp. | 3.94% | 3.91% | 3.68% | 2.79% | 2.93% | 2.86% | 1.40% | 2.17% | 1.97% | 1.96% | 3.43% | 3.43% | 3.27% | 2.82% | 2.81% | 2.63% | |||||
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
ROA = 100
× (Net income attributable to HoneywellQ4 2025
+ Net income attributable to HoneywellQ3 2025
+ Net income attributable to HoneywellQ2 2025
+ Net income attributable to HoneywellQ1 2025)
÷ Total assets
= 100 × (-115 + 1,825 + 1,570 + 1,449)
÷ 73,681 = 6.42%
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a generally stable pattern over the observed period, with fluctuations occurring throughout the quarters. Initial values ranged from 8.16% to 8.92% in the first half of 2022, demonstrating a relatively consistent level of profitability relative to the company’s assets.
- Overall Trend (2022-2024)
- From the end of 2022 through 2023, ROA generally increased, peaking at 9.20% in December 2023. This suggests improved efficiency in utilizing assets to generate income during this timeframe. However, a subsequent downward trend commenced in early 2024, with ROA declining from 8.72% in March 2024 to 7.59% by December 2024. This decline indicates a weakening in the relationship between net income and total assets.
- Recent Performance (2024-2025)
- The downward trend continued into the first half of 2025, reaching 7.29% in June 2025. A slight recovery to 7.57% was observed in September 2025, but this was followed by a significant decrease to 6.42% in December 2025. This final drop represents the lowest ROA value within the analyzed period, potentially signaling increased challenges in asset utilization or a substantial decrease in net income.
- Relationship to Net Income and Total Assets
- The fluctuations in ROA correlate with changes in both net income attributable to Honeywell and total assets. While net income generally remained positive and relatively stable until the final quarter, total assets experienced an overall increase throughout the period. The more pronounced decline in ROA in late 2024 and early 2025, despite relatively stable asset levels, suggests that the decrease in net income had a disproportionately negative impact on profitability relative to assets.
- Quarterly Variability
- ROA demonstrated some degree of quarterly variability. For example, a notable increase occurred between September 2022 (8.92%) and December 2022 (7.97%), followed by a recovery in the subsequent quarters. This suggests that seasonal factors or specific business events may influence the company’s ability to generate returns from its assets on a quarterly basis.
In summary, the ROA trend indicates a period of relative stability followed by a gradual decline, culminating in a significant decrease in the final quarter. This warrants further investigation into the underlying factors contributing to the reduced profitability relative to the company’s asset base.