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Honeywell International Inc. pages available for free this week:
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Analysis of Revenues
- Analysis of Debt
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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities
Honeywell International Inc., adjustment to net income attributable to Honeywell
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
- Reported Net Income
- The reported net income attributable to the company experienced an overall upward trend from 2020 through 2024. Starting at $4,779 million in 2020, the net income increased substantially to $5,542 million in 2021. However, there was a decline in 2022 to $4,966 million, indicating a temporary setback in profitability during that year. Following this dip, net income rose again in 2023 to $5,658 million and showed a slight incremental increase to $5,705 million in 2024, suggesting a recovery and stabilization at a higher earnings level compared to the earlier years.
- Adjusted Net Income
- The adjusted net income closely mirrors the reported net income trends, indicating that adjustments made for non-recurring items or other factors had a limited impact on the overall profitability figures. It began at $4,783 million in 2020, which is almost identical to the reported figure for that year. The amount rose to $5,539 million in 2021 before dropping to $4,958 million in 2022, consistent with the reported net income pattern. A rebound occurred in 2023 with adjusted income climbing to $5,663 million, followed by a marginal increase to $5,706 million in 2024. The close alignment between adjusted and reported figures across all years reflects a stable core operational profitability.
- Insights
- The data suggests the company maintained strong profitability with some volatility in 2022. The quick recovery in the subsequent years indicates resilience and effective management in response to any challenges faced. The minimal difference between reported and adjusted income implies that non-operational factors had little impact on net profit, reinforcing the reliability of reported earnings as a measure of operational performance.
Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)
Honeywell International Inc., adjusted profitability ratios
Based on: 10-K (reporting date: 2024-12-31), 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).
- Net Profit Margin
- The reported net profit margin experienced an increase from 14.64% in 2020 to 16.11% in 2021, indicating improved profitability. It then declined to 14.00% in 2022, followed by a moderate recovery to 15.43% in 2023. In 2024, it slightly decreased again to 14.82%. The adjusted net profit margin closely mirrors this trend, starting at 14.66% in 2020 and peaking at 16.11% in 2021, with subsequent decreases and recoveries aligning with the reported figures. Overall, the margin shows variability with a peak in 2021 and stabilization around the mid-14% range thereafter.
- Return on Equity (ROE)
- Reported ROE showed a steady increase from 27.23% in 2020 to 29.85% in 2021 and remained relatively stable at 29.74% in 2022. A notable increase occurred in 2023, reaching 35.68%, before declining to 30.64% in 2024. The adjusted ROE follows a highly similar pattern with values marginally different by hundredths of a percent, confirming consistency in core equity returns after adjustments. The significant spike in 2023 suggests enhanced efficiency or profitability in relation to shareholders' equity during that period.
- Return on Assets (ROA)
- Reported ROA exhibited an upward trend from 7.4% in 2020 to 8.6% in 2021. It subsequently decreased to 7.97% in 2022, followed by a pronounced rise to 9.2% in 2023, marking the highest point within the given period. In 2024, ROA dropped to 7.59%, the lowest level after 2020. Adjusted ROA reflects the same pattern, with very close values confirming consistent asset profitability measurements. The 2023 peak highlights a period where asset utilization was most effective before experiencing a decline the following year.
Honeywell International Inc., Profitability Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 Net profit margin = 100 × Net income attributable to Honeywell ÷ Net sales
= 100 × ÷ =
2 Adjusted net profit margin = 100 × Adjusted net income attributable to Honeywell ÷ Net sales
= 100 × ÷ =
- Net Income Trends
- Both reported and adjusted net income attributable to the company exhibit a generally positive trajectory over the observed period. Starting at approximately 4,779 million US dollars in 2020, the income increased to a peak of 5,542 million US dollars in 2021. There was a subsequent decline in 2022 to roughly 4,966 million US dollars, followed by a recovery to 5,658 million US dollars in 2023 and a marginal increase to 5,705 million US dollars in 2024. The close alignment between reported and adjusted figures suggests minimal impact from one-time or extraordinary items on net income.
- Net Profit Margin Analysis
- The reported net profit margin exhibited a similar pattern to net income, beginning at 14.64% in 2020 and increasing to 16.11% in 2021, indicating enhanced profitability during that year. This was followed by a decline to 14.00% in 2022, then an improvement to 15.43% in 2023 and a slight decrease to 14.82% in 2024. The adjusted net profit margin mirrors this trend with values near-identical to the reported margins, reinforcing the stability and consistency of the company’s profit generation excluding unusual items.
- Overall Observations
- The financial data reflects a stable and resilient profitability profile with some fluctuations likely influenced by external market conditions or operational factors in 2022. The recovery in both net income and margins after 2022 suggests effective management responses and underlying business strength. The negligible differences between reported and adjusted figures throughout the period indicate reliable earnings quality and transparency in financial reporting.
Adjusted Return on Equity (ROE)
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 ROE = 100 × Net income attributable to Honeywell ÷ Total Honeywell shareowners’ equity
= 100 × ÷ =
2 Adjusted ROE = 100 × Adjusted net income attributable to Honeywell ÷ Total Honeywell shareowners’ equity
= 100 × ÷ =
- Net Income Trends
- The reported net income attributable to the company exhibited a general upward trend over the five-year period. Beginning at 4,779 million USD in 2020, it increased to 5,542 million USD in 2021. A slight decline occurred in 2022, with net income dropping to 4,966 million USD. However, the figures rebounded in 2023 and 2024, reaching 5,658 million USD and 5,705 million USD respectively. The adjusted net income closely followed the same pattern, indicating consistency between reported and adjusted figures.
- Return on Equity (ROE) Analysis
- Both reported and adjusted ROE percentages demonstrated a positive trajectory from 2020 through 2023, increasing from approximately 27.2% to a peak of about 35.7%. This suggests improved efficiency in generating profits from shareholders' equity during this period. However, in 2024, the ROE decreased to approximately 30.6%, indicating a reduction in profitability relative to equity compared to the previous year, though still higher than the 2020 starting point. The near-identical values of reported and adjusted ROE imply minimal adjustments impacting this metric.
- Overall Financial Performance
- The company has shown resilience and growth in profitability over the analyzed years, with net income and ROE both improving significantly before experiencing slight moderation in 2024. The alignment between reported and adjusted figures indicates transparent reporting and consistent performance metrics. The fluctuations in net income and ROE in 2022 and 2024 suggest potential external factors or internal strategic shifts affecting financial outcomes during those years.
Adjusted Return on Assets (ROA)
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 ROA = 100 × Net income attributable to Honeywell ÷ Total assets
= 100 × ÷ =
2 Adjusted ROA = 100 × Adjusted net income attributable to Honeywell ÷ Total assets
= 100 × ÷ =
- Net Income Trends
- The reported net income attributable to the company experienced a general upward trend from 2020 to 2024. It increased from $4,779 million in 2020 to $5,542 million in 2021, then declined slightly to $4,966 million in 2022. Following this dip, the net income rose again to $5,658 million in 2023 and marginally increased to $5,705 million in 2024. The adjusted net income shows a similar pattern, closely tracking the reported figures with negligible differences, indicating minor adjustments over the periods.
- Return on Assets (ROA) Analysis
- Both reported and adjusted ROA percentages follow a consistent trend throughout the five-year period. Starting at 7.4% in 2020, ROA increased to 8.6% in 2021, then experienced a moderate decline to about 7.96% in 2022. In 2023, ROA peaked at 9.2%, before dropping significantly to 7.59% in 2024. The adjusted ROA values mirror the reported ROA very closely, showing only marginal differences, which suggests that adjustments have a minimal impact on asset efficiency measures.
- Overall Observations
- The data reveal that both profitability and asset efficiency exhibited fluctuations rather than consistent growth. While there was a notable increase in net income and ROA in 2021 and 2023, these improvements were followed by declines in the subsequent periods. The close alignment between reported and adjusted figures indicates stability in the quality and reliability of earnings and returns presented. The peak ROA in 2023 suggests an especially efficient use of assets that year, though this was not sustained into 2024.