Microsoft Excel LibreOffice Calc

Honeywell International Inc. (HON)


Adjusted Financial Ratios

Advanced level


Adjusted Financial Ratios (Summary)

Honeywell International Inc., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Activity Ratio
Total Asset Turnover
Reported 0.72 0.68 0.73 0.78 0.89
Adjusted 0.74 0.67 0.72 0.76 0.88
Liquidity Ratio
Current Ratio
Reported 1.29 1.38 1.41 1.09 1.50
Adjusted 1.57 1.66 1.73 1.29 1.82
Solvency Ratios
Debt to Equity
Reported 0.89 1.04 0.81 0.66 0.49
Adjusted 0.69 0.80 0.73 0.59 0.48
Debt to Capital
Reported 0.47 0.51 0.45 0.40 0.33
Adjusted 0.41 0.45 0.42 0.37 0.32
Financial Leverage
Reported 3.18 3.44 2.80 2.70 2.57
Adjusted 2.39 2.57 2.39 2.28 2.24
Profitability Ratios
Net Profit Margin
Reported 16.18% 4.08% 12.24% 12.36% 10.52%
Adjusted 14.74% 11.16% 12.76% 10.01% 5.33%
Return on Equity (ROE)
Reported 37.21% 9.58% 24.83% 26.08% 24.01%
Adjusted 26.02% 19.24% 21.85% 17.38% 10.48%
Return on Assets (ROA)
Reported 11.71% 2.79% 8.88% 9.67% 9.33%
Adjusted 10.90% 7.49% 9.15% 7.62% 4.68%

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Honeywell International Inc.’s adjusted total asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Honeywell International Inc.’s adjusted current ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Honeywell International Inc.’s adjusted debt-to-equity ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Honeywell International Inc.’s adjusted debt-to-capital ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Honeywell International Inc.’s adjusted financial leverage ratio increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Honeywell International Inc.’s adjusted net profit margin ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Honeywell International Inc.’s adjusted ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Honeywell International Inc.’s adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Honeywell International Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (US$ in millions)
Net sales 41,802  40,534  39,302  38,581  40,306 
Total assets 57,773  59,387  54,146  49,316  45,451 
Activity Ratio
Total asset turnover1 0.72 0.68 0.73 0.78 0.89
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net sales2 43,195  40,576  39,572  38,356  40,277 
Adjusted total assets3 58,416  60,432  55,186  50,418  45,844 
Activity Ratio
Adjusted total asset turnover4 0.74 0.67 0.72 0.76 0.88

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 2018 Calculation
Total asset turnover = Net sales ÷ Total assets
= 41,802 ÷ 57,773 = 0.72

2 Adjusted net sales. See details »

3 Adjusted total assets. See details »

4 2018 Calculation
Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= 43,195 ÷ 58,416 = 0.74

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Honeywell International Inc.’s adjusted total asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (US$ in millions)
Current assets 24,362  26,002  23,058  20,053  22,191 
Current liabilities 18,924  18,861  16,331  18,371  14,773 
Liquidity Ratio
Current ratio1 1.29 1.38 1.41 1.09 1.50
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 24,598  26,243  23,428  20,431  21,910 
Adjusted current liabilities3 15,712  15,848  13,507  15,818  12,036 
Liquidity Ratio
Adjusted current ratio4 1.57 1.66 1.73 1.29 1.82

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 2018 Calculation
Current ratio = Current assets ÷ Current liabilities
= 24,362 ÷ 18,924 = 1.29

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2018 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 24,598 ÷ 15,712 = 1.57

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Honeywell International Inc.’s adjusted current ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (US$ in millions)
Total debt 16,214  17,882  15,775  12,068  8,683 
Total Honeywell shareowners’ equity 18,180  17,276  19,369  18,283  17,657 
Solvency Ratio
Debt to equity1 0.89 1.04 0.81 0.66 0.49
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 17,003  18,922  16,792  13,075  9,761 
Adjusted total shareowners’ equity3 24,475  23,538  23,109  22,089  20,486 
Solvency Ratio
Adjusted debt to equity4 0.69 0.80 0.73 0.59 0.48

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 2018 Calculation
Debt to equity = Total debt ÷ Total Honeywell shareowners’ equity
= 16,214 ÷ 18,180 = 0.89

2 Adjusted total debt. See details »

3 Adjusted total shareowners’ equity. See details »

4 2018 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total shareowners’ equity
= 17,003 ÷ 24,475 = 0.69

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Honeywell International Inc.’s adjusted debt-to-equity ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (US$ in millions)
Total debt 16,214  17,882  15,775  12,068  8,683 
Total capital 34,394  35,158  35,144  30,351  26,340 
Solvency Ratio
Debt to capital1 0.47 0.51 0.45 0.40 0.33
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 17,003  18,922  16,792  13,075  9,761 
Adjusted total capital3 41,478  42,460  39,901  35,164  30,247 
Solvency Ratio
Adjusted debt to capital4 0.41 0.45 0.42 0.37 0.32

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 2018 Calculation
Debt to capital = Total debt ÷ Total capital
= 16,214 ÷ 34,394 = 0.47

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2018 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 17,003 ÷ 41,478 = 0.41

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Honeywell International Inc.’s adjusted debt-to-capital ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (US$ in millions)
Total assets 57,773  59,387  54,146  49,316  45,451 
Total Honeywell shareowners’ equity 18,180  17,276  19,369  18,283  17,657 
Solvency Ratio
Financial leverage1 3.18 3.44 2.80 2.70 2.57
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 58,416  60,432  55,186  50,418  45,844 
Adjusted total shareowners’ equity3 24,475  23,538  23,109  22,089  20,486 
Solvency Ratio
Adjusted financial leverage4 2.39 2.57 2.39 2.28 2.24

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 2018 Calculation
Financial leverage = Total assets ÷ Total Honeywell shareowners’ equity
= 57,773 ÷ 18,180 = 3.18

2 Adjusted total assets. See details »

3 Adjusted total shareowners’ equity. See details »

4 2018 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total shareowners’ equity
= 58,416 ÷ 24,475 = 2.39

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Honeywell International Inc.’s adjusted financial leverage ratio increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell 6,765  1,655  4,809  4,768  4,239 
Net sales 41,802  40,534  39,302  38,581  40,306 
Profitability Ratio
Net profit margin1 16.18% 4.08% 12.24% 12.36% 10.52%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 6,369  4,528  5,049  3,840  2,146 
Adjusted net sales3 43,195  40,576  39,572  38,356  40,277 
Profitability Ratio
Adjusted net profit margin4 14.74% 11.16% 12.76% 10.01% 5.33%

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 2018 Calculation
Net profit margin = 100 × Net income attributable to Honeywell ÷ Net sales
= 100 × 6,765 ÷ 41,802 = 16.18%

2 Adjusted net income. See details »

3 Adjusted net sales. See details »

4 2018 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted net sales
= 100 × 6,369 ÷ 43,195 = 14.74%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Honeywell International Inc.’s adjusted net profit margin ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell 6,765  1,655  4,809  4,768  4,239 
Total Honeywell shareowners’ equity 18,180  17,276  19,369  18,283  17,657 
Profitability Ratio
ROE1 37.21% 9.58% 24.83% 26.08% 24.01%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 6,369  4,528  5,049  3,840  2,146 
Adjusted total shareowners’ equity3 24,475  23,538  23,109  22,089  20,486 
Profitability Ratio
Adjusted ROE4 26.02% 19.24% 21.85% 17.38% 10.48%

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 2018 Calculation
ROE = 100 × Net income attributable to Honeywell ÷ Total Honeywell shareowners’ equity
= 100 × 6,765 ÷ 18,180 = 37.21%

2 Adjusted net income. See details »

3 Adjusted total shareowners’ equity. See details »

4 2018 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total shareowners’ equity
= 100 × 6,369 ÷ 24,475 = 26.02%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Honeywell International Inc.’s adjusted ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell 6,765  1,655  4,809  4,768  4,239 
Total assets 57,773  59,387  54,146  49,316  45,451 
Profitability Ratio
ROA1 11.71% 2.79% 8.88% 9.67% 9.33%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 6,369  4,528  5,049  3,840  2,146 
Adjusted total assets3 58,416  60,432  55,186  50,418  45,844 
Profitability Ratio
Adjusted ROA4 10.90% 7.49% 9.15% 7.62% 4.68%

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 2018 Calculation
ROA = 100 × Net income attributable to Honeywell ÷ Total assets
= 100 × 6,765 ÷ 57,773 = 11.71%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2018 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 6,369 ÷ 58,416 = 10.90%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Honeywell International Inc.’s adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.