Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Honeywell International Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Honeywell International Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Honeywell International Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Honeywell International Inc. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Honeywell International Inc. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Honeywell International Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Honeywell International Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Honeywell International Inc. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Honeywell International Inc. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |
Inventory Turnover
Honeywell International Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of products and services sold | 23,394) | 22,169) | 24,339) | 29,046) | 27,575) | |
| Inventories | 5,138) | 4,489) | 4,421) | 4,326) | 4,613) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 4.55 | 4.94 | 5.51 | 6.71 | 5.98 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Boeing Co. | 0.75 | 0.78 | 0.94 | 1.30 | — | |
| Caterpillar Inc. | 2.53 | 2.55 | 3.25 | 3.21 | 3.10 | |
| General Electric Co. | 3.40 | 3.80 | 4.74 | 4.81 | 4.19 | |
| Lockheed Martin Corp. | 19.45 | 16.01 | 14.22 | 15.51 | — | |
| Northrop Grumman Corp. | 35.02 | 38.63 | 33.95 | 35.63 | — | |
| Raytheon Technologies Corp. | 5.65 | 5.11 | 5.21 | 4.96 | — | |
| Inventory Turnover, Sector | ||||||
| Capital Goods | 2.45 | 2.43 | 2.75 | 3.23 | — | |
| Inventory Turnover, Industry | ||||||
| Industrials | 4.40 | 3.99 | 4.74 | 5.33 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Inventory turnover = Cost of products and services sold ÷ Inventories
= 23,394 ÷ 5,138 = 4.55
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Honeywell International Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Receivables Turnover
Honeywell International Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 34,392) | 32,637) | 36,709) | 41,802) | 40,534) | |
| Accounts receivable, less allowances | 6,830) | 6,827) | 7,493) | 7,508) | 8,866) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 5.04 | 4.78 | 4.90 | 5.57 | 4.57 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Boeing Co. | 23.58 | 29.75 | 23.44 | 26.07 | — | |
| Caterpillar Inc. | 5.68 | 5.33 | 5.92 | 5.89 | 5.74 | |
| General Electric Co. | 4.55 | 4.37 | 5.22 | 5.71 | 4.63 | |
| Lockheed Martin Corp. | 34.15 | 33.06 | 25.59 | 22.00 | — | |
| Northrop Grumman Corp. | 24.31 | 24.52 | 25.52 | 20.78 | — | |
| Raytheon Technologies Corp. | 6.66 | 6.11 | 5.70 | 4.66 | — | |
| Receivables Turnover, Sector | ||||||
| Capital Goods | 8.21 | 7.94 | 7.92 | 7.88 | — | |
| Receivables Turnover, Industry | ||||||
| Industrials | 8.45 | 8.10 | 8.87 | 8.80 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, less allowances
= 34,392 ÷ 6,830 = 5.04
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Honeywell International Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Payables Turnover
Honeywell International Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of products and services sold | 23,394) | 22,169) | 24,339) | 29,046) | 27,575) | |
| Accounts payable | 6,484) | 5,750) | 5,730) | 5,607) | 6,584) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 3.61 | 3.86 | 4.25 | 5.18 | 4.19 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Boeing Co. | 6.40 | 4.94 | 4.63 | 6.30 | — | |
| Caterpillar Inc. | 4.36 | 4.75 | 6.15 | 5.25 | 4.79 | |
| General Electric Co. | 3.32 | 3.67 | 4.20 | 5.40 | 6.07 | |
| Lockheed Martin Corp. | 74.34 | 64.48 | 40.16 | 19.35 | — | |
| Northrop Grumman Corp. | 12.93 | 16.24 | 11.94 | 10.68 | — | |
| Raytheon Technologies Corp. | 5.93 | 5.56 | 5.28 | 4.51 | — | |
| Payables Turnover, Sector | ||||||
| Capital Goods | 5.98 | 5.89 | 5.83 | 6.16 | — | |
| Payables Turnover, Industry | ||||||
| Industrials | 8.38 | 7.91 | 8.28 | 8.52 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Payables turnover = Cost of products and services sold ÷ Accounts payable
= 23,394 ÷ 6,484 = 3.61
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Honeywell International Inc. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021. |
Working Capital Turnover
Honeywell International Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 25,372) | 28,175) | 24,303) | 24,362) | 26,002) | |
| Less: Current liabilities | 19,508) | 19,197) | 18,098) | 18,924) | 18,861) | |
| Working capital | 5,864) | 8,978) | 6,205) | 5,438) | 7,141) | |
| Net sales | 34,392) | 32,637) | 36,709) | 41,802) | 40,534) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 5.86 | 3.64 | 5.92 | 7.69 | 5.68 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Boeing Co. | 2.34 | 1.69 | 15.57 | 16.21 | — | |
| Caterpillar Inc. | 3.54 | 2.84 | 4.04 | 4.99 | 4.58 | |
| General Electric Co. | 4.94 | 2.26 | 7.03 | 19.33 | 8.59 | |
| Lockheed Martin Corp. | 11.52 | 12.01 | 19.15 | 31.53 | — | |
| Northrop Grumman Corp. | 12.32 | 6.38 | 27.05 | 21.40 | — | |
| Raytheon Technologies Corp. | 9.75 | 7.52 | 26.47 | 16.08 | — | |
| Working Capital Turnover, Sector | ||||||
| Capital Goods | 5.05 | 3.34 | 9.72 | 13.04 | — | |
| Working Capital Turnover, Industry | ||||||
| Industrials | 7.14 | 4.97 | 21.14 | 27.86 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Working capital turnover = Net sales ÷ Working capital
= 34,392 ÷ 5,864 = 5.86
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Honeywell International Inc. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Average Inventory Processing Period
Honeywell International Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 4.55 | 4.94 | 5.51 | 6.71 | 5.98 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 80 | 74 | 66 | 54 | 61 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Boeing Co. | 486 | 467 | 388 | 280 | — | |
| Caterpillar Inc. | 144 | 143 | 112 | 114 | 118 | |
| General Electric Co. | 107 | 96 | 77 | 76 | 87 | |
| Lockheed Martin Corp. | 19 | 23 | 26 | 24 | — | |
| Northrop Grumman Corp. | 10 | 9 | 11 | 10 | — | |
| Raytheon Technologies Corp. | 65 | 71 | 70 | 74 | — | |
| Average Inventory Processing Period, Sector | ||||||
| Capital Goods | 149 | 150 | 133 | 113 | — | |
| Average Inventory Processing Period, Industry | ||||||
| Industrials | 83 | 91 | 77 | 68 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.55 = 80
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Honeywell International Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
Average Receivable Collection Period
Honeywell International Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 5.04 | 4.78 | 4.90 | 5.57 | 4.57 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 72 | 76 | 75 | 66 | 80 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Boeing Co. | 15 | 12 | 16 | 14 | — | |
| Caterpillar Inc. | 64 | 68 | 62 | 62 | 64 | |
| General Electric Co. | 80 | 83 | 70 | 64 | 79 | |
| Lockheed Martin Corp. | 11 | 11 | 14 | 17 | — | |
| Northrop Grumman Corp. | 15 | 15 | 14 | 18 | — | |
| Raytheon Technologies Corp. | 55 | 60 | 64 | 78 | — | |
| Average Receivable Collection Period, Sector | ||||||
| Capital Goods | 44 | 46 | 46 | 46 | — | |
| Average Receivable Collection Period, Industry | ||||||
| Industrials | 43 | 45 | 41 | 41 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.04 = 72
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Honeywell International Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Operating Cycle
Honeywell International Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 80 | 74 | 66 | 54 | 61 | |
| Average receivable collection period | 72 | 76 | 75 | 66 | 80 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 152 | 150 | 141 | 120 | 141 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Boeing Co. | 501 | 479 | 404 | 294 | — | |
| Caterpillar Inc. | 208 | 211 | 174 | 176 | 182 | |
| General Electric Co. | 187 | 179 | 147 | 140 | 166 | |
| Lockheed Martin Corp. | 30 | 34 | 40 | 41 | — | |
| Northrop Grumman Corp. | 25 | 24 | 25 | 28 | — | |
| Raytheon Technologies Corp. | 120 | 131 | 134 | 152 | — | |
| Operating Cycle, Sector | ||||||
| Capital Goods | 193 | 196 | 179 | 159 | — | |
| Operating Cycle, Industry | ||||||
| Industrials | 126 | 136 | 118 | 109 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 80 + 72 = 152
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Honeywell International Inc. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |
Average Payables Payment Period
Honeywell International Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 3.61 | 3.86 | 4.25 | 5.18 | 4.19 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 101 | 95 | 86 | 70 | 87 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Boeing Co. | 57 | 74 | 79 | 58 | — | |
| Caterpillar Inc. | 84 | 77 | 59 | 70 | 76 | |
| General Electric Co. | 110 | 100 | 87 | 68 | 60 | |
| Lockheed Martin Corp. | 5 | 6 | 9 | 19 | — | |
| Northrop Grumman Corp. | 28 | 22 | 31 | 34 | — | |
| Raytheon Technologies Corp. | 62 | 66 | 69 | 81 | — | |
| Average Payables Payment Period, Sector | ||||||
| Capital Goods | 61 | 62 | 63 | 59 | — | |
| Average Payables Payment Period, Industry | ||||||
| Industrials | 44 | 46 | 44 | 43 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.61 = 101
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Honeywell International Inc. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021. |
Cash Conversion Cycle
Honeywell International Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 80 | 74 | 66 | 54 | 61 | |
| Average receivable collection period | 72 | 76 | 75 | 66 | 80 | |
| Average payables payment period | 101 | 95 | 86 | 70 | 87 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 51 | 55 | 55 | 50 | 54 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Boeing Co. | 444 | 405 | 325 | 236 | — | |
| Caterpillar Inc. | 124 | 134 | 115 | 106 | 106 | |
| General Electric Co. | 77 | 79 | 60 | 72 | 106 | |
| Lockheed Martin Corp. | 25 | 28 | 31 | 22 | — | |
| Northrop Grumman Corp. | -3 | 2 | -6 | -6 | — | |
| Raytheon Technologies Corp. | 58 | 65 | 65 | 71 | — | |
| Cash Conversion Cycle, Sector | ||||||
| Capital Goods | 132 | 134 | 116 | 100 | — | |
| Cash Conversion Cycle, Industry | ||||||
| Industrials | 82 | 90 | 74 | 66 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 80 + 72 – 101 = 51
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |