Stock Analysis on Net
Stock Analysis on Net
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Honeywell International Inc. (NYSE:HON)

Adjusted Financial Ratios

Advanced level

Adjusted Financial Ratios (Summary)

Honeywell International Inc., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Activity Ratio
Total Asset Turnover
Reported 0.63 0.72 0.68 0.73 0.78
Adjusted 0.63 0.74 0.67 0.72 0.76
Liquidity Ratio
Current Ratio
Reported 1.34 1.29 1.38 1.41 1.09
Adjusted 1.66 1.57 1.66 1.73 1.29
Solvency Ratios
Debt to Equity
Reported 0.87 0.89 1.04 0.81 0.66
Adjusted 0.66 0.69 0.80 0.73 0.59
Debt to Capital
Reported 0.46 0.47 0.51 0.45 0.40
Adjusted 0.40 0.41 0.45 0.42 0.37
Financial Leverage
Reported 3.17 3.18 3.44 2.80 2.70
Adjusted 2.33 2.39 2.57 2.39 2.28
Profitability Ratios
Net Profit Margin
Reported 16.73% 16.18% 4.08% 12.24% 12.36%
Adjusted 18.39% 14.74% 11.16% 12.76% 10.01%
Return on Equity (ROE)
Reported 33.22% 37.21% 9.58% 24.83% 26.08%
Adjusted 26.88% 26.02% 19.24% 21.85% 17.38%
Return on Assets (ROA)
Reported 10.47% 11.71% 2.79% 8.88% 9.67%
Adjusted 11.53% 10.90% 7.49% 9.15% 7.62%

Based on: 10-K (filing date: 2020-02-14), 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).

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 improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
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 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
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 improved from 2017 to 2018 and from 2018 to 2019.
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 improved from 2017 to 2018 and from 2018 to 2019.
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 decreased from 2017 to 2018 and from 2018 to 2019.
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 improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Honeywell International Inc.’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Honeywell International Inc.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

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


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net sales 36,709  41,802  40,534  39,302  38,581 
Total assets 58,679  57,773  59,387  54,146  49,316 
Activity Ratio
Total asset turnover1 0.63 0.72 0.68 0.73 0.78
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net sales2 36,842  43,195  40,576  39,572  38,356 
Adjusted total assets3 58,784  58,416  60,432  55,186  50,418 
Activity Ratio
Adjusted total asset turnover4 0.63 0.74 0.67 0.72 0.76

Based on: 10-K (filing date: 2020-02-14), 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).

1 2019 Calculation
Total asset turnover = Net sales ÷ Total assets
= 36,709 ÷ 58,679 = 0.63

2 Adjusted net sales. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= 36,842 ÷ 58,784 = 0.63

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 improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Current assets 24,303  24,362  26,002  23,058  20,053 
Current liabilities 18,098  18,924  18,861  16,331  18,371 
Liquidity Ratio
Current ratio1 1.34 1.29 1.38 1.41 1.09
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 24,494  24,598  26,243  23,428  20,431 
Adjusted current liabilities3 14,755  15,712  15,848  13,507  15,818 
Liquidity Ratio
Adjusted current ratio4 1.66 1.57 1.66 1.73 1.29

Based on: 10-K (filing date: 2020-02-14), 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).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 24,303 ÷ 18,098 = 1.34

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2019 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 24,494 ÷ 14,755 = 1.66

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 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 16,002  16,214  17,882  15,775  12,068 
Total Honeywell shareowners’ equity 18,494  18,180  17,276  19,369  18,283 
Solvency Ratio
Debt to equity1 0.87 0.89 1.04 0.81 0.66
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 16,707  17,003  18,922  16,792  13,075 
Adjusted total shareowners’ equity3 25,208  24,475  23,538  23,109  22,089 
Solvency Ratio
Adjusted debt to equity4 0.66 0.69 0.80 0.73 0.59

Based on: 10-K (filing date: 2020-02-14), 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).

1 2019 Calculation
Debt to equity = Total debt ÷ Total Honeywell shareowners’ equity
= 16,002 ÷ 18,494 = 0.87

2 Adjusted total debt. See details »

3 Adjusted total shareowners’ equity. See details »

4 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total shareowners’ equity
= 16,707 ÷ 25,208 = 0.66

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 improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 16,002  16,214  17,882  15,775  12,068 
Total capital 34,496  34,394  35,158  35,144  30,351 
Solvency Ratio
Debt to capital1 0.46 0.47 0.51 0.45 0.40
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 16,707  17,003  18,922  16,792  13,075 
Adjusted total capital3 41,915  41,478  42,460  39,901  35,164 
Solvency Ratio
Adjusted debt to capital4 0.40 0.41 0.45 0.42 0.37

Based on: 10-K (filing date: 2020-02-14), 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).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 16,002 ÷ 34,496 = 0.46

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 16,707 ÷ 41,915 = 0.40

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 improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total assets 58,679  57,773  59,387  54,146  49,316 
Total Honeywell shareowners’ equity 18,494  18,180  17,276  19,369  18,283 
Solvency Ratio
Financial leverage1 3.17 3.18 3.44 2.80 2.70
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 58,784  58,416  60,432  55,186  50,418 
Adjusted total shareowners’ equity3 25,208  24,475  23,538  23,109  22,089 
Solvency Ratio
Adjusted financial leverage4 2.33 2.39 2.57 2.39 2.28

Based on: 10-K (filing date: 2020-02-14), 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).

1 2019 Calculation
Financial leverage = Total assets ÷ Total Honeywell shareowners’ equity
= 58,679 ÷ 18,494 = 3.17

2 Adjusted total assets. See details »

3 Adjusted total shareowners’ equity. See details »

4 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total shareowners’ equity
= 58,784 ÷ 25,208 = 2.33

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 decreased from 2017 to 2018 and from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell 6,143  6,765  1,655  4,809  4,768 
Net sales 36,709  41,802  40,534  39,302  38,581 
Profitability Ratio
Net profit margin1 16.73% 16.18% 4.08% 12.24% 12.36%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 6,776  6,369  4,528  5,049  3,840 
Adjusted net sales3 36,842  43,195  40,576  39,572  38,356 
Profitability Ratio
Adjusted net profit margin4 18.39% 14.74% 11.16% 12.76% 10.01%

Based on: 10-K (filing date: 2020-02-14), 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).

1 2019 Calculation
Net profit margin = 100 × Net income attributable to Honeywell ÷ Net sales
= 100 × 6,143 ÷ 36,709 = 16.73%

2 Adjusted net income. See details »

3 Adjusted net sales. See details »

4 2019 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted net sales
= 100 × 6,776 ÷ 36,842 = 18.39%

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 improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell 6,143  6,765  1,655  4,809  4,768 
Total Honeywell shareowners’ equity 18,494  18,180  17,276  19,369  18,283 
Profitability Ratio
ROE1 33.22% 37.21% 9.58% 24.83% 26.08%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 6,776  6,369  4,528  5,049  3,840 
Adjusted total shareowners’ equity3 25,208  24,475  23,538  23,109  22,089 
Profitability Ratio
Adjusted ROE4 26.88% 26.02% 19.24% 21.85% 17.38%

Based on: 10-K (filing date: 2020-02-14), 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).

1 2019 Calculation
ROE = 100 × Net income attributable to Honeywell ÷ Total Honeywell shareowners’ equity
= 100 × 6,143 ÷ 18,494 = 33.22%

2 Adjusted net income. See details »

3 Adjusted total shareowners’ equity. See details »

4 2019 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total shareowners’ equity
= 100 × 6,776 ÷ 25,208 = 26.88%

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 improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell 6,143  6,765  1,655  4,809  4,768 
Total assets 58,679  57,773  59,387  54,146  49,316 
Profitability Ratio
ROA1 10.47% 11.71% 2.79% 8.88% 9.67%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 6,776  6,369  4,528  5,049  3,840 
Adjusted total assets3 58,784  58,416  60,432  55,186  50,418 
Profitability Ratio
Adjusted ROA4 11.53% 10.90% 7.49% 9.15% 7.62%

Based on: 10-K (filing date: 2020-02-14), 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).

1 2019 Calculation
ROA = 100 × Net income attributable to Honeywell ÷ Total assets
= 100 × 6,143 ÷ 58,679 = 10.47%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 6,776 ÷ 58,784 = 11.53%

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 improved from 2017 to 2018 and from 2018 to 2019.