Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Honeywell International Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	5,740)	5,672)	4,967)	5,610)	4,865)
Net income attributable to the noncontrolling interest	(35)	(14)	(1)	(68)	(86)
Net income attributable to Honeywell	5,705)	5,658)	4,966)	5,542)	4,779)
Depreciation	671)	659)	657)	674)	644)
Amortization	663)	517)	547)	549)	358)
(Gain) loss on sale of non-strategic businesses and assets	1)	(5)	(22)	(102)	3)
Impairment of assets held for sale	219)	—)	—)	—)	—)
Repositioning and other charges	244)	860)	1,266)	569)	575)
Net payments for repositioning and other charges	(479)	(459)	(512)	(692)	(833)
NARCO Buyout payment	—)	(1,325)	—)	—)	—)
Pension and other postretirement income	(476)	(406)	(510)	(1,114)	(798)
Pension and other postretirement benefit payments	(32)	(38)	(23)	(43)	(47)
Stock compensation expense	194)	202)	188)	217)	168)
Deferred income taxes	(233)	153)	(180)	178)	(175)
Reimbursement receivables charge	—)	—)	—)	—)	509)
Other	(617)	(837)	(358)	(28)	(338)
Accounts receivable	(96)	(42)	(739)	(8)	669)
Inventories	(304)	(626)	(440)	(685)	(67)
Other current assets	371)	17)	232)	(276)	191)
Accounts payable	95)	518)	(155)	744)	15)
Accrued liabilities	171)	494)	357)	513)	555)
Changes in assets and liabilities, net of the effects of acquisitions and divestitures	237)	361)	(745)	288)	1,363)
Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities	392)	(318)	308)	496)	1,429)
Net cash provided by operating activities	6,097)	5,340)	5,274)	6,038)	6,208)
Capital expenditures	(1,164)	(1,039)	(766)	(895)	(906)
Proceeds from disposals of property, plant and equipment	—)	43)	29)	27)	57)
Increase in investments	(1,077)	(560)	(1,211)	(2,373)	(3,236)
Decrease in investments	870)	971)	1,255)	2,525)	3,508)
Receipts from Garrett Motion Inc.	—)	—)	409)	586)	—)
(Payments) receipts from settlements of derivative contracts	94)	6)	369)	192)	(149)
Cash paid for acquisitions, net of cash acquired	(8,880)	(718)	(178)	(1,326)	(261)
Proceeds from sales of businesses, net of fees paid	—)	4)	—)	203)	—)
Net cash used for investing activities	(10,157)	(1,293)	(93)	(1,061)	(987)
Proceeds from issuance of commercial paper and other short-term borrowings	13,838)	12,991)	7,661)	5,194)	10,474)
Payments of commercial paper and other short-term borrowings	(11,578)	(13,663)	(8,447)	(5,190)	(10,400)
Proceeds from issuance of common stock	537)	196)	320)	229)	393)
Proceeds from issuance of long-term debt	10,408)	2,986)	2,953)	2,517)	10,125)
Payments of long-term debt	(1,812)	(1,731)	(1,850)	(4,917)	(4,308)
Repurchases of common stock	(1,655)	(3,715)	(4,200)	(3,380)	(3,714)
Cash dividends paid	(2,902)	(2,855)	(2,719)	(2,626)	(2,592)
Other	3)	28)	(48)	(81)	(59)
Net cash provided by (used for) financing activities	6,839)	(5,763)	(6,330)	(8,254)	(81)
Effect of foreign exchange rate changes on cash and cash equivalents	(137)	14)	(183)	(39)	68)
Net increase (decrease) in cash and cash equivalents	2,642)	(1,702)	(1,332)	(3,316)	5,208)
Cash and cash equivalents at beginning of period	7,925)	9,627)	10,959)	14,275)	9,067)
Cash and cash equivalents at end of period	10,567)	7,925)	9,627)	10,959)	14,275)

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 Income Trends: Net income generally increased from 4,865 million US dollars in 2020 to 5,740 million in 2024, signaling positive earnings growth over the five-year period. There was a dip in 2022 to 4,967 million, but recovery occurred in subsequent years. Net income attributable to the company followed a similar trend, with values closely mirroring overall net income figures.
Depreciation and Amortization: Depreciation showed slight fluctuations but remained relatively stable, ranging from 644 to 671 million US dollars over the period. Amortization increased notably, peaking at 663 million in 2024 from 358 million in 2020, indicating increased intangible asset expenses or acquisitions.
Non-Recurring and Restructuring Charges: Repositioning and other charges exhibited significant variation, peaking at 1,266 million in 2022 before declining sharply to 244 million in 2024. Net payments for these charges were negative throughout, indicating cash outflows related to restructuring but showing a decreasing absolute magnitude year over year. Impairment charges emerged in 2024 at 219 million, marking a new expense not present in prior years.
Pension and Postretirement Benefits: Pension and other postretirement income were negative throughout, meaning net expenses or losses, with varying magnitude, peaking in absolute value in 2021 at -1,114 million, then decreasing to -476 million in 2024. Benefit payments were relatively low and stable, ranging roughly from -23 to -47 million annually.
Working Capital and Other Adjustments: Changes in assets and liabilities presented an inconsistent pattern, with substantial positive changes in 2020 and 2023, and negative changes in 2022. Notably, accounts receivable and inventories fluctuated, sometimes showing decreases impacting cash flow positively. Deferred income taxes also oscillated between positive and negative values, indicating variability in tax strategies or timing differences.
Operating Cash Flow and Capital Expenditures: Net cash provided by operating activities was robust, hovering around 5,274 to 6,208 million dollars each year, with a temporary dip in 2022 and a rise back to 6,097 million in 2024. Capital expenditures showed a generally increasing trend, rising from 906 million in 2020 to 1,164 million in 2024, indicating greater investment in fixed assets.
Investing Activities: Investments exhibited a decline in cash outflows, but the sharp cash outlay for acquisitions in 2024 at -8,880 million marked a significant increase compared to previous years. Proceeds from disposals and sales fluctuated but did not offset acquisition payments. Net cash used for investing activities was largest in 2024 at -10,157 million, driven mainly by acquisitions.
Financing Activities: Financing activities were volatile. Issuance of commercial paper and long-term debt increased substantially by 2024, reaching 13,838 million and 10,408 million respectively, reflecting increased borrowing. Repayments and stock repurchases decreased in magnitude in 2024, with repurchases dropping to 1,655 million from higher levels in prior years. Cash dividends paid steadily increased slightly over time. Net cash provided by or used for financing activities turned positive in 2024 at 6,839 million after negative results in preceding years, driven by increased debt issuance and share issuance.
Liquidity Position: Cash and cash equivalents started at 9,067 million in 2020, growing to a peak of 14,275 million in 2021 before declining to 7,925 million in 2023. However, a rebound occurred in 2024, raising the balance to 10,567 million. Net increases or decreases in cash were negative in most years except for 2020 and 2024, indicating challenges in cash flow management during the mid-period.

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Honeywell International Inc. (NASDAQ:HON)

Cash Flow Statement