Honeywell International Inc. (NASDAQ:HON)

Liquidity performance demonstrates a pattern of stability characterized by periodic fluctuations and a significant peak in the first quarter of 2024. The company maintains a consistent ability to meet short-term obligations, as evidenced by the current ratio remaining above 1.0 throughout the entire observation period.

Current Ratio Trends

The current ratio generally oscillates between 1.20 and 1.44, with a pronounced spike to 1.66 on March 31, 2024. Following this peak, the ratio stabilized between 1.21 and 1.39 through March 2026, indicating a sustained capacity to cover current liabilities with current assets.

Quick Ratio Analysis

The quick ratio exhibits a strong correlation with the current ratio, peaking at 1.18 on March 31, 2024. For the majority of the period, the ratio remains below 1.0, typically ranging from 0.82 to 0.98. This suggests that a significant portion of the current assets is tied up in inventory, which is required to fully meet short-term obligations.

Cash Ratio Observations

The cash ratio maintains a baseline between 0.40 and 0.60, with a maximum value of 0.73 recorded on March 31, 2024. The relative stability of this ratio suggests a consistent approach to maintaining cash and cash equivalents relative to current liabilities.

A synchronized increase across all three liquidity metrics is observed in the first quarter of 2024, suggesting a temporary surge in highly liquid assets or a strategic reduction in short-term debt. Beyond this event, the liquidity profile remains consistent, exhibiting minimal volatility and a stable trend through the end of the analyzed period.

The organization exhibits a consistent and stable liquidity position over the analyzed period, characterized by a current ratio that remains comfortably above the 1.0 threshold. This indicates a sustained capacity to meet short-term obligations using current assets, with an overall trajectory of growth in the company's liquid resource base.

Current Asset Trends

A long-term upward trend in current assets is observed, increasing from 24,281 million USD in March 2022 to 30,590 million USD by March 2026. While the first two years showed relative stagnation with values fluctuating between 22,500 million USD and 24,900 million USD, a significant expansion occurred starting in March 2024, where assets consistently exceeded 25,000 million USD, peaking at 30,747 million USD in September 2025.

Current Liability Management

Current liabilities remained relatively stable, fluctuating within a range of approximately 16,400 million USD to 23,400 million USD. A notable reduction in liabilities occurred in early 2024, reaching a period low of 16,488 million USD in March 2024. Subsequently, liabilities trended upward through 2025, peaking at 23,414 million USD in December 2025 before declining to 22,085 million USD by March 2026.

Current Ratio Interpretation

The current ratio maintained a baseline of 1.20 or higher throughout the entire period. A significant spike to 1.66 was recorded in March 2024, driven by the simultaneous increase in current assets and the decline in current liabilities. Following this peak, the ratio normalized and stabilized, fluctuating between 1.21 and 1.44. The most recent data from March 2026 shows a ratio of 1.39, suggesting a strengthened liquidity position compared to the 2022 baseline.

The liquidity position of the organization is characterized by a general increase in both liquid assets and short-term obligations, with the quick ratio remaining largely below the 1.0 threshold. While the ratio exhibited stability for the majority of the period, a significant temporary surge in liquidity occurred in early 2024, followed by a return to historical norms.

Total Quick Assets Trend

A long-term upward trajectory is observed in total quick assets, which grew from 16,893 million USD in March 2022 to a peak of 22,282 million USD in September 2025. Despite periodic fluctuations throughout 2023, the asset base expanded significantly starting in March 2024, maintaining a level above 18,000 million USD for the remainder of the analyzed timeframe.

Current Liabilities Evolution

Current liabilities showed relative stability between 17,000 and 20,000 million USD from March 2022 through December 2023. A notable decline to a period low of 16,488 million USD was recorded in March 2024. Subsequently, liabilities entered a growth phase, peaking at 23,414 million USD in December 2025 before moderating to 22,085 million USD by March 2026.

Quick Ratio Analysis

The quick ratio predominantly fluctuated within a range of 0.82 to 0.98, suggesting a consistent reliance on non-quick current assets or external financing to meet total short-term obligations. A singular outlier occurred on March 31, 2024, where the ratio reached 1.18, the only instance in the period where quick assets fully covered current liabilities. This peak was driven by the simultaneous occurrence of an increase in quick assets and a sharp reduction in current liabilities. In the subsequent quarters, the ratio stabilized, ending the period at 0.93 in March 2026.

The cash ratio exhibits a fluctuating but generally stable trend over the analyzed period, predominantly oscillating between 0.40 and 0.60. This suggests a consistent approach to managing immediate liquidity relative to short-term obligations, although certain quarters show significant deviations from the established mean.

Liquidity Volatility and Peaks

A notable peak in liquidity occurred on March 31, 2024, where the cash ratio reached 0.73. This spike was the result of a concurrent increase in total cash assets to 12,005 million US$ and a reduction in current liabilities to 16,488 million US$, the lowest level recorded in the analyzed period.

Cash Asset Trends

Total cash assets experienced a period of decline through the first quarter of 2023, hitting a minimum of 7,240 million US$. Following this trough, a general upward trajectory is observed, peaking at 13,359 million US$ by September 30, 2025, reflecting an overall strengthening of the cash position.

Liability Growth and Ratio Impact

Current liabilities showed an increasing trend starting in early 2024, rising from 16,488 million US$ to a peak of 23,414 million US$ by December 31, 2025. Despite this expansion of obligations, the cash ratio remained higher on average during the 2024-2026 period compared to the 2022-2023 period, as the growth in cash assets largely offset the rise in liabilities.

Stabilization Period

Between March 31, 2025, and March 31, 2026, the cash ratio stabilized within the 0.46 to 0.56 range, indicating a return to a normalized liquidity posture following the volatility observed in 2024.