Stock Analysis on Net

Honeywell International Inc. (NASDAQ:HON)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Honeywell International Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Turnover Ratios
Inventory turnover 4.55 4.94 5.51 6.71 5.98
Receivables turnover 5.04 4.78 4.90 5.57 4.57
Payables turnover 3.61 3.86 4.25 5.18 4.19
Working capital turnover 5.86 3.64 5.92 7.69 5.68
Average No. Days
Average inventory processing period 80 74 66 54 61
Add: Average receivable collection period 72 76 75 66 80
Operating cycle 152 150 141 120 141
Less: Average payables payment period 101 95 86 70 87
Cash conversion cycle 51 55 55 50 54

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

Microsoft Excel
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
3M Co. 3.77 3.92 4.15 3.82 3.97
Boeing Co. 0.75 0.78 0.94 1.30 1.71
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 10.14
Raytheon Technologies Corp. 5.65 5.11 5.21 4.96 4.45
Inventory Turnover, Sector
Capital Goods 2.30 2.27 2.60 3.07 3.34
Inventory Turnover, Industry
Industrials 4.04 3.71 4.25 4.81 5.19

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

Microsoft Excel
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
3M Co. 7.59 6.84 6.71 6.53 6.45
Boeing Co. 23.58 29.75 23.44 26.07 8.88
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 5.93
Raytheon Technologies Corp. 6.66 6.11 5.70 4.66 4.75
Receivables Turnover, Sector
Capital Goods 7.68 7.33 7.41 7.47 5.59
Receivables Turnover, Industry
Industrials 7.97 7.61 8.07 8.10 6.47

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

Microsoft Excel
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
3M Co. 6.28 6.48 7.69 7.36 8.23
Boeing Co. 6.40 4.94 4.63 6.30 6.23
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 31.02
Raytheon Technologies Corp. 5.93 5.56 5.28 4.51 4.59
Payables Turnover, Sector
Capital Goods 5.71 5.56 5.66 6.04 6.22
Payables Turnover, Industry
Industrials 8.09 7.58 7.85 8.12 8.38

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

Microsoft Excel
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
3M Co. 5.55 4.58 8.57 5.07 4.80
Boeing Co. 2.34 1.69 15.57 16.21 10.50
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 10.58
Raytheon Technologies Corp. 9.75 7.52 26.47 16.08 7.07
Working Capital Turnover, Sector
Capital Goods 4.82 3.26 9.16 11.46 7.40
Working Capital Turnover, Industry
Industrials 6.87 4.83 15.39 18.43 10.52

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
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

Microsoft Excel
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
3M Co. 97 93 88 96 92
Boeing Co. 486 467 388 280 213
Caterpillar Inc. 144 143 112 114 118
General Electric Co. 107 96 77 76 87
Lockheed Martin Corp. 19 23 26 24 36
Raytheon Technologies Corp. 65 71 70 74 82
Average Inventory Processing Period, Sector
Capital Goods 159 161 140 119 109
Average Inventory Processing Period, Industry
Industrials 90 98 86 76 70

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

Microsoft Excel
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
3M Co. 48 53 54 56 57
Boeing Co. 15 12 16 14 41
Caterpillar Inc. 64 68 62 62 64
General Electric Co. 80 83 70 64 79
Lockheed Martin Corp. 11 11 14 17 62
Raytheon Technologies Corp. 55 60 64 78 77
Average Receivable Collection Period, Sector
Capital Goods 48 50 49 49 65
Average Receivable Collection Period, Industry
Industrials 46 48 45 45 56

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

Microsoft Excel
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
3M Co. 145 146 142 152 149
Boeing Co. 501 479 404 294 254
Caterpillar Inc. 208 211 174 176 182
General Electric Co. 187 179 147 140 166
Lockheed Martin Corp. 30 34 40 41 98
Raytheon Technologies Corp. 120 131 134 152 159
Operating Cycle, Sector
Capital Goods 207 211 189 168 174
Operating Cycle, Industry
Industrials 136 146 131 121 126

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

Microsoft Excel
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
3M Co. 58 56 47 50 44
Boeing Co. 57 74 79 58 59
Caterpillar Inc. 84 77 59 70 76
General Electric Co. 110 100 87 68 60
Lockheed Martin Corp. 5 6 9 19 12
Raytheon Technologies Corp. 62 66 69 81 80
Average Payables Payment Period, Sector
Capital Goods 64 66 64 60 59
Average Payables Payment Period, Industry
Industrials 45 48 47 45 44

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

Microsoft Excel
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
3M Co. 87 90 95 102 105
Boeing Co. 444 405 325 236 195
Caterpillar Inc. 124 134 115 106 106
General Electric Co. 77 79 60 72 106
Lockheed Martin Corp. 25 28 31 22 86
Raytheon Technologies Corp. 58 65 65 71 79
Cash Conversion Cycle, Sector
Capital Goods 143 145 125 108 115
Cash Conversion Cycle, Industry
Industrials 91 98 84 76 82

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 + 72101 = 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.