Common-Size Income Statement
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- 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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Honeywell International Inc., common-size consolidated income statement
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).
- Sales Composition
- Product sales as a percentage of net sales have shown a steady decline from 75.79% in 2020 to 68.26% in 2024. Conversely, service sales have increased consistently over the same period, rising from 24.21% to 31.74%. This indicates a gradual shift in the company’s revenue mix towards higher reliance on services.
- Cost Structure
- The cost of products sold decreased significantly from -54.04% of net sales in 2020 to -44.75% in 2024, reflecting an improvement in product cost management or possibly changes in product mix. The cost of services sold increased moderately from -13.88% to -17.17%, correlating with the rising share of service sales. Overall, the combined cost of products and services sold declined from -67.93% to -61.91%, contributing to improved profitability.
- Profitability
- Gross profit margin improved steadily, rising from 32.07% in 2020 to 38.09% in 2024, reflecting higher efficiency or favorable pricing. Operating income remained relatively stable with a slight upward trend, increasing from 17.45% to 19.33% over five years, supported by better gross margins and controlled operating expenses.
- Operating Expenses
- Research and development expenses have been relatively stable around 4% of net sales since 2021, indicating consistent investment in innovation. Selling, general, and administrative expenses showed minor fluctuations but remained near 14%, reflecting controlled overhead.
- Non-Operating Items
- Interest income increased notably from 0.33% to 1.11%, which could indicate higher returns on investments or increased cash balances. Pension and other postretirement incomes as a percentage of net sales trended downward, suggesting reduced pension-related gains. Foreign exchange effects were mixed, with a slight negative impact more recently.
- Special Items and Charges
- Various one-time charges appeared sporadically, including impairment of assets held for sale (-0.57% in 2024) and expense items related to specific matters such as UOP and geopolitical conflicts, though their impact remains relatively small against net sales.
- Income and Taxes
- Income before taxes showed some volatility but generally remained in the range of 17.99% to 21.04%, ending lower at 18.74% in 2024. Tax expense hovered around 3.5% to 4.7%, with a small decline in 2024, supporting a stable net income margin. Net income as a percentage of net sales rose initially from 14.91% in 2020 to 16.31% in 2021, then declined and fluctuated, closing at 14.91% in 2024.
- Net Income Distribution
- Net income attributable to Honeywell closely tracks total net income, with minor deductions for noncontrolling interests, which are consistently small in magnitude.