Microsoft Excel LibreOffice Calc

Liquidity Analysis

Difficulty: Beginner


Ratios (Summary)

Honeywell International Inc., liquidity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Current ratio 1.29 1.38 1.41 1.09 1.50
Quick ratio 0.97 1.04 1.07 0.74 1.01
Cash ratio 0.58 0.57 0.57 0.30 0.47

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
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Honeywell International Inc.’s current ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Honeywell International Inc.’s quick ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Honeywell International Inc.’s cash ratio improved from 2016 to 2017 and from 2017 to 2018.

Current Ratio

Honeywell International Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
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
Benchmarks
Current Ratio, Competitors
3M Co. 1.89 1.86 1.89 1.54 1.96
Danaher Corp. 1.43 0.97 1.27 1.75
General Electric Co. 1.83 1.92 1.58 1.98
Current Ratio, Sector
General Industrials 1.74 1.78 1.50 1.95
Current Ratio, Industry
Industrials 1.46 1.43 1.38 1.64

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

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

Quick Ratio

Honeywell International Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 9,287  7,059  7,843  5,455  6,959 
Short-term investments 1,623  3,758  1,520  –  – 
Accounts receivable, net 7,508  8,866  8,177  8,075  7,960 
Total quick assets 18,418  19,683  17,540  13,530  14,919 
Current liabilities 18,924  18,861  16,331  18,371  14,773 
Ratio
Quick ratio1 0.97 1.04 1.07 0.74 1.01
Benchmarks
Quick Ratio, Competitors
3M Co. 1.14 1.18 1.14 0.85 1.13
Danaher Corp. 0.87 0.60 0.77 1.23
General Electric Co. 1.55 1.64 1.37 1.90
Quick Ratio, Sector
General Industrials 1.41 1.47 1.23 1.81
Quick Ratio, Industry
Industrials 0.98 0.95 0.92 1.29

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 Quick ratio = Total quick assets ÷ Current liabilities
= 18,418 ÷ 18,924 = 0.97

Ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Honeywell International Inc.’s quick ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Cash Ratio

Honeywell International Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 9,287  7,059  7,843  5,455  6,959 
Short-term investments 1,623  3,758  1,520  –  – 
Total cash assets 10,910  10,817  9,363  5,455  6,959 
Current liabilities 18,924  18,861  16,331  18,371  14,773 
Ratio
Cash ratio1 0.58 0.57 0.57 0.30 0.47
Benchmarks
Cash Ratio, Competitors
3M Co. 0.45 0.54 0.43 0.27 0.42
Danaher Corp. 0.13 0.14 0.13 0.56
General Electric Co. 1.03 1.13 0.95 0.66
Cash Ratio, Sector
General Industrials 0.88 0.95 0.79 0.64
Cash Ratio, Industry
Industrials 0.51 0.50 0.49 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 Cash ratio = Total cash assets ÷ Current liabilities
= 10,910 ÷ 18,924 = 0.58

Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Honeywell International Inc.’s cash ratio improved from 2016 to 2017 and from 2017 to 2018.