Microsoft Excel LibreOffice Calc

Honeywell International Inc. (HON)

Adjusted Ratios

Difficulty: Advanced

Adjusted Ratios (Summary)

Honeywell International Inc., adjusted ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Activity
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
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
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
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).

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 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 increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
Adjusted net profit margin An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. Honeywell International Inc.’s adjusted net profit margin deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted ROE A profitability ratio calculated as adjusted comprehensive 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 comprehensive 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., 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 (USD $ 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 
Ratio
Total asset turnover1 0.72 0.68 0.73 0.78 0.89
Adjusted
Selected Financial Data (USD $ 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 
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).

2018 Calculations

1 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 Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= 43,195 ÷ 58,416 = 0.74

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 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 (USD $ 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 
Ratio
Current ratio1 1.29 1.38 1.41 1.09 1.50
Adjusted
Selected Financial Data (USD $ 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 
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).

2018 Calculations

1 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 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 24,598 ÷ 15,712 = 1.57

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 (USD $ 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 
Ratio
Debt to equity1 0.89 1.04 0.81 0.66 0.49
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total debt2 17,003  18,922  16,792  13,075  9,761 
Adjusted total Honeywell shareowners’ equity3 24,475  23,538  23,109  22,089  20,486 
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).

2018 Calculations

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

2 Adjusted total debt. See Details »

3 Adjusted total Honeywell shareowners’ equity. See Details »

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

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 (USD $ 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 
Ratio
Debt to capital1 0.47 0.51 0.45 0.40 0.33
Adjusted
Selected Financial Data (USD $ 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 
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).

2018 Calculations

1 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 Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 17,003 ÷ 41,478 = 0.41

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 (USD $ 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 
Ratio
Financial leverage1 3.18 3.44 2.80 2.70 2.57
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total assets2 58,416  60,432  55,186  50,418  45,844 
Adjusted total Honeywell shareowners’ equity3 24,475  23,538  23,109  22,089  20,486 
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).

2018 Calculations

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

2 Adjusted total assets. See Details »

3 Adjusted total Honeywell shareowners’ equity. See Details »

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

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 increased from 2016 to 2017 but then declined 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 (USD $ 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 
Ratio
Net profit margin1 16.18% 4.08% 12.24% 12.36% 10.52%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted net income attributable to Honeywell2 6,369  4,528  5,049  3,840  2,146 
Adjusted net sales3 43,195  40,576  39,572  38,356  40,277 
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).

2018 Calculations

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

2 Adjusted net income attributable to Honeywell. See Details »

3 Adjusted net sales. See Details »

4 Adjusted net profit margin = 100 × Adjusted net income attributable to Honeywell ÷ Adjusted net sales
= 100 × 6,369 ÷ 43,195 = 14.74%

Ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. Honeywell International Inc.’s adjusted net profit margin 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 (USD $ 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 
Ratio
ROE1 37.21% 9.58% 24.83% 26.08% 24.01%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted net income attributable to Honeywell2 6,369  4,528  5,049  3,840  2,146 
Adjusted total Honeywell shareowners’ equity3 24,475  23,538  23,109  22,089  20,486 
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).

2018 Calculations

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

2 Adjusted net income attributable to Honeywell. See Details »

3 Adjusted total Honeywell shareowners’ equity. See Details »

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

Ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted comprehensive 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 (USD $ 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 
Ratio
ROA1 11.71% 2.79% 8.88% 9.67% 9.33%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted net income attributable to Honeywell2 6,369  4,528  5,049  3,840  2,146 
Adjusted total assets3 58,416  60,432  55,186  50,418  45,844 
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).

2018 Calculations

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

2 Adjusted net income attributable to Honeywell. See Details »

3 Adjusted total assets. See Details »

4 Adjusted ROA = 100 × Adjusted net income attributable to Honeywell ÷ Adjusted total assets
= 100 × 6,369 ÷ 58,416 = 10.90%

Ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted comprehensive 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.