Analysis of Liquidity Ratios
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Honeywell International Inc., liquidity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.34 | 1.29 | 1.38 | 1.41 | 1.09 | |
| Quick ratio | 0.99 | 0.97 | 1.04 | 1.07 | 0.74 | |
| Cash ratio | 0.58 | 0.58 | 0.57 | 0.57 | 0.30 |
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).
| Liquidity 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 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
| 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 2017 to 2018 but then slightly improved from 2018 to 2019. |
| 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 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Current Ratio
Honeywell International Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| 3M Co. | 1.41 | 1.89 | 1.86 | 1.89 | 1.54 | |
| General Electric Co. | 1.66 | 1.76 | 1.83 | 1.92 | 1.58 | |
| Current Ratio, Sector | ||||||
| General Industrials | 1.58 | 1.68 | 1.75 | 1.83 | 1.51 | |
| Current Ratio, Industry | ||||||
| Industrials | 1.28 | 1.29 | 1.44 | 1.44 | 1.38 | |
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
Current ratio = Current assets ÷ Current liabilities
= 24,303 ÷ 18,098 = 1.34
2 Click competitor name to see calculations.
| Liquidity 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 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Quick Ratio
Honeywell International Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 9,067 | 9,287 | 7,059 | 7,843 | 5,455 | |
| Short-term investments | 1,349 | 1,623 | 3,758 | 1,520 | — | |
| Accounts receivable, net | 7,493 | 7,508 | 8,866 | 8,177 | 8,075 | |
| Total quick assets | 17,909 | 18,418 | 19,683 | 17,540 | 13,530 | |
| Current liabilities | 18,098 | 18,924 | 18,861 | 16,331 | 18,371 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.99 | 0.97 | 1.04 | 1.07 | 0.74 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| 3M Co. | 0.79 | 1.14 | 1.18 | 1.14 | 0.85 | |
| General Electric Co. | 1.47 | 1.48 | 1.55 | 1.64 | 1.37 | |
| Quick Ratio, Sector | ||||||
| General Industrials | 1.33 | 1.36 | 1.43 | 1.52 | 1.26 | |
| Quick Ratio, Industry | ||||||
| Industrials | 0.80 | 0.81 | 0.97 | 0.96 | 0.92 | |
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
Quick ratio = Total quick assets ÷ Current liabilities
= 17,909 ÷ 18,098 = 0.99
2 Click competitor name to see calculations.
| Liquidity 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 2017 to 2018 but then slightly improved from 2018 to 2019. |
Cash Ratio
Honeywell International Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 9,067 | 9,287 | 7,059 | 7,843 | 5,455 | |
| Short-term investments | 1,349 | 1,623 | 3,758 | 1,520 | — | |
| Total cash assets | 10,416 | 10,910 | 10,817 | 9,363 | 5,455 | |
| Current liabilities | 18,098 | 18,924 | 18,861 | 16,331 | 18,371 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.58 | 0.58 | 0.57 | 0.57 | 0.30 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| 3M Co. | 0.27 | 0.45 | 0.54 | 0.43 | 0.27 | |
| General Electric Co. | 1.12 | 0.99 | 1.03 | 1.13 | 0.95 | |
| Cash Ratio, Sector | ||||||
| General Industrials | 0.95 | 0.87 | 0.92 | 1.00 | 0.82 | |
| Cash Ratio, Industry | ||||||
| Industrials | 0.41 | 0.37 | 0.51 | 0.52 | 0.50 | |
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
Cash ratio = Total cash assets ÷ Current liabilities
= 10,416 ÷ 18,098 = 0.58
2 Click competitor name to see calculations.
| Liquidity 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 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |