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)
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).
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 2021 to 2022 and from 2022 to 2023. |
Receivables turnover | An activity ratio equal to revenue divided by receivables. | Honeywell International Inc. receivables turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Honeywell International Inc. payables turnover ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Honeywell International Inc. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
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 2021 to 2022 and from 2022 to 2023. |
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 2021 to 2022 but then slightly improved from 2022 to 2023. |
Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Honeywell International Inc. operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023. |
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 decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
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
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Cost of products and services sold | 22,995) | 22,347) | 22,061) | 22,169) | 24,339) | |
Inventories | 6,178) | 5,538) | 5,138) | 4,489) | 4,421) | |
Short-term Activity Ratio | ||||||
Inventory turnover1 | 3.72 | 4.04 | 4.29 | 4.94 | 5.51 | |
Benchmarks | ||||||
Inventory Turnover, Competitors2 | ||||||
Boeing Co. | 0.88 | 0.81 | 0.75 | 0.78 | 0.94 | |
Caterpillar Inc. | 2.58 | 2.54 | 2.53 | 2.55 | 3.25 | |
Cummins Inc. | 4.55 | 3.81 | 4.21 | 4.36 | 5.05 | |
Eaton Corp. plc | 3.95 | 4.04 | 4.48 | 5.88 | 5.11 | |
General Electric Co. | 3.05 | 3.19 | 3.40 | 3.80 | 4.74 | |
Lockheed Martin Corp. | 18.87 | 18.68 | 19.45 | 16.01 | 14.22 | |
RTX Corp. | 4.83 | 5.03 | 5.65 | 5.11 | 5.21 | |
Inventory Turnover, Sector | ||||||
Capital Goods | 2.39 | 2.35 | 2.34 | 2.33 | 2.67 | |
Inventory Turnover, Industry | ||||||
Industrials | 3.92 | 3.98 | 3.88 | 3.63 | 3.97 |
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
Inventory turnover = Cost of products and services sold ÷ Inventories
= 22,995 ÷ 6,178 = 3.72
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 2021 to 2022 and from 2022 to 2023. |
Receivables Turnover
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Net sales | 36,662) | 35,466) | 34,392) | 32,637) | 36,709) | |
Accounts receivable, less allowances | 7,530) | 7,440) | 6,830) | 6,827) | 7,493) | |
Short-term Activity Ratio | ||||||
Receivables turnover1 | 4.87 | 4.77 | 5.04 | 4.78 | 4.90 | |
Benchmarks | ||||||
Receivables Turnover, Competitors2 | ||||||
Boeing Co. | 29.37 | 26.46 | 23.58 | 29.75 | 23.44 | |
Caterpillar Inc. | 6.86 | 6.39 | 5.68 | 5.33 | 5.92 | |
Cummins Inc. | 6.10 | 5.40 | 6.02 | 5.19 | 6.42 | |
Eaton Corp. plc | 5.18 | 5.09 | 5.95 | 6.15 | 6.22 | |
General Electric Co. | 4.17 | 4.09 | 4.55 | 4.37 | 5.22 | |
Lockheed Martin Corp. | 31.69 | 26.34 | 34.15 | 33.06 | 25.59 | |
RTX Corp. | 6.36 | 7.36 | 6.66 | 6.11 | 5.70 | |
Receivables Turnover, Sector | ||||||
Capital Goods | 7.53 | 7.18 | 7.45 | 7.14 | 7.34 | |
Receivables Turnover, Industry | ||||||
Industrials | 8.00 | 7.66 | 7.53 | 7.37 | 7.61 |
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
Receivables turnover = Net sales ÷ Accounts receivable, less allowances
= 36,662 ÷ 7,530 = 4.87
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 2021 to 2022 but then slightly improved from 2022 to 2023. |
Payables Turnover
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Cost of products and services sold | 22,995) | 22,347) | 22,061) | 22,169) | 24,339) | |
Accounts payable | 6,849) | 6,329) | 6,484) | 5,750) | 5,730) | |
Short-term Activity Ratio | ||||||
Payables turnover1 | 3.36 | 3.53 | 3.40 | 3.86 | 4.25 | |
Benchmarks | ||||||
Payables Turnover, Competitors2 | ||||||
Boeing Co. | 5.86 | 6.18 | 6.40 | 4.94 | 4.63 | |
Caterpillar Inc. | 5.41 | 4.76 | 4.36 | 4.75 | 6.15 | |
Cummins Inc. | 6.06 | 5.02 | 6.07 | 5.29 | 6.94 | |
Eaton Corp. plc | 4.39 | 4.51 | 4.75 | 6.24 | 6.78 | |
General Electric Co. | 3.27 | 2.98 | 3.32 | 3.67 | 4.20 | |
Lockheed Martin Corp. | 25.56 | 27.25 | 74.34 | 64.48 | 40.16 | |
RTX Corp. | 5.31 | 5.40 | 5.93 | 5.56 | 5.28 | |
Payables Turnover, Sector | ||||||
Capital Goods | 5.46 | 5.20 | 5.63 | 5.53 | 5.68 | |
Payables Turnover, Industry | ||||||
Industrials | 7.65 | 7.44 | 7.66 | 7.35 | 7.38 |
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
Payables turnover = Cost of products and services sold ÷ Accounts payable
= 22,995 ÷ 6,849 = 3.36
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 increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Working Capital Turnover
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Current assets | 23,502) | 24,982) | 25,372) | 28,175) | 24,303) | |
Less: Current liabilities | 18,539) | 19,938) | 19,508) | 19,197) | 18,098) | |
Working capital | 4,963) | 5,044) | 5,864) | 8,978) | 6,205) | |
Net sales | 36,662) | 35,466) | 34,392) | 32,637) | 36,709) | |
Short-term Activity Ratio | ||||||
Working capital turnover1 | 7.39 | 7.03 | 5.86 | 3.64 | 5.92 | |
Benchmarks | ||||||
Working Capital Turnover, Competitors2 | ||||||
Boeing Co. | 5.78 | 3.42 | 2.34 | 1.69 | 15.57 | |
Caterpillar Inc. | 5.23 | 4.62 | 3.54 | 2.84 | 4.04 | |
Cummins Inc. | 14.84 | 9.27 | 4.60 | 3.56 | 7.54 | |
Eaton Corp. plc | 5.91 | 8.70 | 65.65 | 5.42 | 5.95 | |
General Electric Co. | 7.24 | 7.93 | 4.94 | 2.26 | 7.03 | |
Lockheed Martin Corp. | 18.85 | 12.93 | 11.52 | 12.01 | 19.15 | |
RTX Corp. | 41.62 | 20.15 | 9.75 | 7.52 | 26.47 | |
Working Capital Turnover, Sector | ||||||
Capital Goods | 8.56 | 6.91 | 4.98 | 3.26 | 8.86 | |
Working Capital Turnover, Industry | ||||||
Industrials | 11.58 | 9.65 | 6.77 | 4.43 | 9.88 |
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
Working capital turnover = Net sales ÷ Working capital
= 36,662 ÷ 4,963 = 7.39
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 improved from 2021 to 2022 and from 2022 to 2023. |
Average Inventory Processing Period
Honeywell International Inc., average inventory processing period calculation, comparison to benchmarks
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Inventory turnover | 3.72 | 4.04 | 4.29 | 4.94 | 5.51 | |
Short-term Activity Ratio (no. days) | ||||||
Average inventory processing period1 | 98 | 90 | 85 | 74 | 66 | |
Benchmarks (no. days) | ||||||
Average Inventory Processing Period, Competitors2 | ||||||
Boeing Co. | 415 | 452 | 486 | 467 | 388 | |
Caterpillar Inc. | 141 | 144 | 144 | 143 | 112 | |
Cummins Inc. | 80 | 96 | 87 | 84 | 72 | |
Eaton Corp. plc | 92 | 90 | 82 | 62 | 71 | |
General Electric Co. | 120 | 114 | 107 | 96 | 77 | |
Lockheed Martin Corp. | 19 | 20 | 19 | 23 | 26 | |
RTX Corp. | 76 | 73 | 65 | 71 | 70 | |
Average Inventory Processing Period, Sector | ||||||
Capital Goods | 153 | 156 | 156 | 157 | 136 | |
Average Inventory Processing Period, Industry | ||||||
Industrials | 93 | 92 | 94 | 100 | 92 |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.72 = 98
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 2021 to 2022 and from 2022 to 2023. |
Average Receivable Collection Period
Honeywell International Inc., average receivable collection period calculation, comparison to benchmarks
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Receivables turnover | 4.87 | 4.77 | 5.04 | 4.78 | 4.90 | |
Short-term Activity Ratio (no. days) | ||||||
Average receivable collection period1 | 75 | 77 | 72 | 76 | 75 | |
Benchmarks (no. days) | ||||||
Average Receivable Collection Period, Competitors2 | ||||||
Boeing Co. | 12 | 14 | 15 | 12 | 16 | |
Caterpillar Inc. | 53 | 57 | 64 | 68 | 62 | |
Cummins Inc. | 60 | 68 | 61 | 70 | 57 | |
Eaton Corp. plc | 70 | 72 | 61 | 59 | 59 | |
General Electric Co. | 87 | 89 | 80 | 83 | 70 | |
Lockheed Martin Corp. | 12 | 14 | 11 | 11 | 14 | |
RTX Corp. | 57 | 50 | 55 | 60 | 64 | |
Average Receivable Collection Period, Sector | ||||||
Capital Goods | 48 | 51 | 49 | 51 | 50 | |
Average Receivable Collection Period, Industry | ||||||
Industrials | 46 | 48 | 48 | 49 | 48 |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.87 = 75
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 2021 to 2022 but then slightly improved from 2022 to 2023. |
Operating Cycle
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Average inventory processing period | 98 | 90 | 85 | 74 | 66 | |
Average receivable collection period | 75 | 77 | 72 | 76 | 75 | |
Short-term Activity Ratio | ||||||
Operating cycle1 | 173 | 167 | 157 | 150 | 141 | |
Benchmarks | ||||||
Operating Cycle, Competitors2 | ||||||
Boeing Co. | 427 | 466 | 501 | 479 | 404 | |
Caterpillar Inc. | 194 | 201 | 208 | 211 | 174 | |
Cummins Inc. | 140 | 164 | 148 | 154 | 129 | |
Eaton Corp. plc | 162 | 162 | 143 | 121 | 130 | |
General Electric Co. | 207 | 203 | 187 | 179 | 147 | |
Lockheed Martin Corp. | 31 | 34 | 30 | 34 | 40 | |
RTX Corp. | 133 | 123 | 120 | 131 | 134 | |
Operating Cycle, Sector | ||||||
Capital Goods | 201 | 207 | 205 | 208 | 186 | |
Operating Cycle, Industry | ||||||
Industrials | 139 | 140 | 142 | 149 | 140 |
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 cycle = Average inventory processing period + Average receivable collection period
= 98 + 75 = 173
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 2021 to 2022 and from 2022 to 2023. |
Average Payables Payment Period
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Payables turnover | 3.36 | 3.53 | 3.40 | 3.86 | 4.25 | |
Short-term Activity Ratio (no. days) | ||||||
Average payables payment period1 | 109 | 103 | 107 | 95 | 86 | |
Benchmarks (no. days) | ||||||
Average Payables Payment Period, Competitors2 | ||||||
Boeing Co. | 62 | 59 | 57 | 74 | 79 | |
Caterpillar Inc. | 67 | 77 | 84 | 77 | 59 | |
Cummins Inc. | 60 | 73 | 60 | 69 | 53 | |
Eaton Corp. plc | 83 | 81 | 77 | 58 | 54 | |
General Electric Co. | 112 | 123 | 110 | 100 | 87 | |
Lockheed Martin Corp. | 14 | 13 | 5 | 6 | 9 | |
RTX Corp. | 69 | 68 | 62 | 66 | 69 | |
Average Payables Payment Period, Sector | ||||||
Capital Goods | 67 | 70 | 65 | 66 | 64 | |
Average Payables Payment Period, Industry | ||||||
Industrials | 48 | 49 | 48 | 50 | 49 |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.36 = 109
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 decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Cash Conversion Cycle
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Average inventory processing period | 98 | 90 | 85 | 74 | 66 | |
Average receivable collection period | 75 | 77 | 72 | 76 | 75 | |
Average payables payment period | 109 | 103 | 107 | 95 | 86 | |
Short-term Activity Ratio | ||||||
Cash conversion cycle1 | 64 | 64 | 50 | 55 | 55 | |
Benchmarks | ||||||
Cash Conversion Cycle, Competitors2 | ||||||
Boeing Co. | 365 | 407 | 444 | 405 | 325 | |
Caterpillar Inc. | 127 | 124 | 124 | 134 | 115 | |
Cummins Inc. | 80 | 91 | 88 | 85 | 76 | |
Eaton Corp. plc | 79 | 81 | 66 | 63 | 76 | |
General Electric Co. | 95 | 80 | 77 | 79 | 60 | |
Lockheed Martin Corp. | 17 | 21 | 25 | 28 | 31 | |
RTX Corp. | 64 | 55 | 58 | 65 | 65 | |
Cash Conversion Cycle, Sector | ||||||
Capital Goods | 134 | 137 | 140 | 142 | 122 | |
Cash Conversion Cycle, Industry | ||||||
Industrials | 91 | 91 | 94 | 99 | 91 |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 98 + 75 – 109 = 64
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. |