Liquidity Analysis
Difficulty: Beginner
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Ratios (Summary)
Honeywell International Inc., liquidity ratios
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
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
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
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. |