Liquidity ratios measure the company ability to meet its short-term obligations.
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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
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- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
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- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Liquidity Ratios (Summary)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Current ratio | ||||||
Quick ratio | ||||||
Cash ratio |
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).
- Current Ratio
- The current ratio exhibits a declining trend from 1.47 in 2020 to a low of 1.25 in 2022, followed by a modest recovery to 1.31 in 2024. This indicates a gradual reduction in the company's short-term liquidity over the initial years, with slight improvement in the last two years, suggesting cautious management of current assets relative to current liabilities.
- Quick Ratio
- The quick ratio shows a consistent decrease from 1.15 in 2020 to 0.84 in 2023, with a slight increase to 0.88 in 2024. The decline reflects a diminishing proportion of highly liquid assets available to cover current liabilities, implying a more conservative cash and receivables position or potentially increased current liabilities not matched by quick assets. The minor uptick in 2024 may signal efforts to strengthen liquidity.
- Cash Ratio
- The cash ratio declines steadily from 0.79 in 2020 to 0.44 in 2023, then rebounds to 0.52 in 2024. This trend indicates a reduction in the most liquid form of assets—cash and cash equivalents—available for immediate settlement of short-term obligations, reaching a low point in 2023. The partial recovery in 2024 suggests a strategic move to enhance immediate liquidity, though still below the starting level in 2020.
Current Ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Current assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Current ratio1 | ||||||
Benchmarks | ||||||
Current Ratio, Competitors2 | ||||||
Boeing Co. | ||||||
Caterpillar Inc. | ||||||
Eaton Corp. plc | ||||||
GE Aerospace | ||||||
Lockheed Martin Corp. | ||||||
RTX Corp. | ||||||
Current Ratio, Sector | ||||||
Capital Goods | ||||||
Current Ratio, Industry | ||||||
Industrials |
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).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets demonstrate a general declining trend from 2020 to 2023, decreasing from $28,175 million in 2020 to $23,502 million in 2023. However, this trend reverses in 2024 with a notable increase to $27,908 million, nearing the level observed in 2020.
- Current Liabilities
- Current liabilities exhibit a fluctuating pattern over the analyzed period. Starting at $19,197 million in 2020, liabilities increased gradually to reach $19,938 million in 2022, followed by a decline to $18,539 million in 2023. In 2024, current liabilities rise sharply to $21,256 million, which is the highest value recorded in the period under review.
- Current Ratio
- The current ratio decreases steadily from 1.47 in 2020 to 1.25 in 2022, indicating a reduction in liquidity over these years. A slight improvement is observed in 2023 with the ratio rising to 1.27, followed by a further increase to 1.31 in 2024. Despite this modest recovery, the ratio in 2024 remains below the 2020 level, suggesting liquidity remains somewhat constrained compared to earlier in the period.
- Overall Analysis
- The period from 2020 to 2023 is characterized by a decline in current assets and a mostly rising or high level of current liabilities, which together reduce liquidity as reflected in the decreasing current ratio. The improvement in both current assets and current ratio in 2024 points to a partial restoration of liquidity, although current liabilities also increase to their highest levels, which may offset some of these gains. The data suggests the company experienced tighter short-term financial conditions particularly between 2020 and 2023, with some signs of recovery in 2024.
Quick Ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Cash and cash equivalents | ||||||
Short-term investments | ||||||
Accounts receivable, less allowances | ||||||
Total quick assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Quick ratio1 | ||||||
Benchmarks | ||||||
Quick Ratio, Competitors2 | ||||||
Boeing Co. | ||||||
Caterpillar Inc. | ||||||
Eaton Corp. plc | ||||||
GE Aerospace | ||||||
Lockheed Martin Corp. | ||||||
RTX Corp. | ||||||
Quick Ratio, Sector | ||||||
Capital Goods | ||||||
Quick Ratio, Industry | ||||||
Industrials |
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).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The financial data exhibits several key trends in the company's liquidity position over the five-year period from 2020 to 2024. The total quick assets show a declining trend from 22,047 million US dollars in 2020 to a low of 15,625 million US dollars in 2023, followed by a recovery to 18,772 million US dollars in 2024. Despite this recovery, the 2024 value remains below the initial 2020 level.
Current liabilities display a generally increasing pattern, starting at 19,197 million US dollars in 2020, rising to 21,256 million US dollars in 2024. Notably, there was a decrease in liabilities in 2023 compared to 2022, but this was followed by an increase in 2024 to the highest level in the period.
As a result of these movements in quick assets and current liabilities, the quick ratio deteriorated over the period. It dropped from 1.15 in 2020 to a low of 0.84 in 2023, indicating a declining short-term liquidity cushion. A partial improvement occurred in 2024, with the quick ratio increasing to 0.88, but it still remained below one, suggesting that quick assets are insufficient to cover current liabilities fully.
- Liquidity
- The overall liquidity position weakened between 2020 and 2023, as quick assets steadily decreased while current liabilities increased, driving down the quick ratio below the generally acceptable threshold of 1. The slight rebound in quick assets and improvement in the quick ratio in 2024 may indicate efforts to strengthen liquidity, although the ratio remains below the initial level.
- Current liabilities
- The rise in current liabilities over the five years may reflect increased short-term obligations or operational needs. The dip in 2023 suggests a temporary reduction, but the subsequent rebound to the highest recorded level in 2024 suggests continued growth in obligations.
- Quick assets
- The decline in quick assets until 2023 reveals a contraction in the company’s most liquid assets, potentially impacting the ability to meet immediate liabilities. The increase in 2024 may reflect asset management adjustments or changes in cash and receivables levels.
Cash Ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Cash and cash equivalents | ||||||
Short-term investments | ||||||
Total cash assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Cash ratio1 | ||||||
Benchmarks | ||||||
Cash Ratio, Competitors2 | ||||||
Boeing Co. | ||||||
Caterpillar Inc. | ||||||
Eaton Corp. plc | ||||||
GE Aerospace | ||||||
Lockheed Martin Corp. | ||||||
RTX Corp. | ||||||
Cash Ratio, Sector | ||||||
Capital Goods | ||||||
Cash Ratio, Industry | ||||||
Industrials |
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).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibit a declining trend from 2020 through 2023, decreasing from 15,220 million USD in 2020 to a low of 8,095 million USD in 2023. However, there is a notable recovery in 2024, with cash assets rising to 10,953 million USD. Despite this rebound, the 2024 figure remains below the levels seen in the earlier years of the period analyzed.
- Current Liabilities
- Current liabilities have shown an overall upward trajectory over the five-year span. Starting at 19,197 million USD in 2020, current liabilities experienced a slight increase through 2022, peaking at 19,938 million USD. A temporary decline to 18,539 million USD occurred in 2023, but this was followed by a significant increase to 21,256 million USD in 2024, reaching the highest point in the period.
- Cash Ratio
- The cash ratio steadily decreased from 0.79 in 2020 to 0.44 in 2023, reflecting a reduction in the company's liquidity relative to its current liabilities. In 2024, the cash ratio improved to 0.52, consistent with the increase observed in total cash assets. Despite this improvement, the ratio remains below the 2020 level, indicating that liquidity, while recovering, has not fully returned to prior strength.