Honeywell International Inc. (NASDAQ:HON)

The liquidity profile exhibits a consistent ability to meet short-term obligations, characterized by periodic fluctuations and a significant liquidity surge in the first quarter of 2024.

Current Ratio

The current ratio generally maintained a range between 1.20 and 1.44 throughout the analyzed period. A notable peak occurred on March 31, 2024, reaching 1.66, which represents the highest point of short-term solvency. Following this peak, the ratio showed volatility before concluding at 1.21 on June 30, 2026, indicating a sustained buffer of current assets over current liabilities.

Quick Ratio

The quick ratio typically fluctuated between 0.82 and 0.98, suggesting that liquid assets excluding inventory frequently sat below the 1.0 threshold. Similar to the current ratio, a peak of 1.18 was recorded on March 31, 2024. A downward trend is observed toward the end of the period, with the ratio reaching a minimum of 0.76 by June 30, 2026.

Cash Ratio

The cash ratio demonstrated a pattern of oscillation between 0.40 and 0.59, with a distinct peak of 0.73 on March 31, 2024. The ratio concluded the period at 0.40, reflecting a moderate level of immediate cash availability relative to current liabilities.

A high degree of correlation is observed between the three ratios, as all metrics peaked simultaneously in early 2024 and experienced a synchronized decline by mid-2026. The consistent gap between the current ratio and the quick ratio indicates that inventory represents a significant and stable portion of the current asset composition. Overall, while the liquidity position remains adequate, there is a visible tightening of liquid resources in the final quarter of the analysis.

The organization maintains a consistent liquidity position throughout the analyzed period, with the current ratio remaining above 1.00 at all reporting intervals. This indicates a sustained capacity to cover short-term obligations using short-term assets, although the ratio exhibits notable periodic volatility.

Current Ratio Trends and Volatility

The current ratio began the period at 1.21 in March 2022 and remained relatively stable through the end of 2022. A period of increased liquidity was observed in 2023, peaking at 1.41 in June 2023. The most significant spike occurred on March 31, 2024, when the ratio reached a maximum of 1.66. Following this peak, the ratio experienced a corrective decline to 1.21 by June 30, 2024, before fluctuating between 1.21 and 1.44 through June 30, 2026.

Current Asset Dynamics

Current assets showed a general upward trajectory over the long term, rising from 24,281 million USD in March 2022 to a peak of 30,747 million USD in September 2025. While there were periodic contractions—such as the dip to 22,510 million USD in March 2023—the overall trend suggests an expansion of the short-term asset base, particularly from 2024 onwards.

Current Liability Management

Current liabilities exhibited more volatility than assets, ranging from a low of 16,488 million USD in March 2024 to a high of 23,414 million USD in December 2025. The peak liquidity ratio in March 2024 was driven by the convergence of rising assets and a simultaneous reduction in short-term liabilities. In contrast, the most recent data from June 30, 2026, shows a current ratio of 1.21, resulting from a decrease in current assets to 28,079 million USD and an increase in current liabilities to 23,194 million USD.

The overall liquidity profile suggests a strategic management of working capital, where the organization avoids excessive liquidity that could indicate inefficiency while ensuring a sufficient buffer to mitigate short-term financial risk.

The liquidity position over the analyzed period is characterized by a general trend of maintaining quick assets below the level of current liabilities, with the quick ratio typically fluctuating between 0.80 and 1.00. While there was a temporary period of strengthened liquidity in early 2024, the overall trajectory indicates a tightening of the liquidity buffer toward the end of the period.

Analysis of Quick Assets

Total quick assets exhibited moderate stability from March 2022 through December 2023, oscillating between US$ 15.1 billion and US$ 17.6 billion. A period of expansion followed, with assets increasing to a peak of US$ 22.28 billion by September 30, 2025. This growth trend reversed in the final quarters, with a decline to US$ 17.53 billion by June 30, 2026.

Analysis of Current Liabilities

Current liabilities remained relatively range-bound between US$ 18.1 billion and US$ 20.0 billion throughout 2022 and 2023. A notable contraction occurred on March 31, 2024, when liabilities dropped to a period low of US$ 16.49 billion. Subsequently, a consistent upward trend is observed, with liabilities rising to US$ 23.19 billion by June 30, 2026, representing a significant increase in short-term obligations.

Quick Ratio Trends and Implications

The quick ratio peaked at 1.18 on March 31, 2024, marking the only instance in the sequence where quick assets exceeded current liabilities. This peak was the result of a convergence between increasing quick assets and a sharp decrease in current liabilities. Following this event, the ratio returned to a sub-1.0 level, fluctuating between 0.83 and 0.98. The period concludes with a decline to 0.76 in June 2026, the lowest recorded value in the series, driven by the simultaneous reduction in quick assets and the escalation of current liabilities.

The cash ratio exhibits significant volatility over the analyzed period, fluctuating primarily between 0.40 and 0.73. This indicates a variable capacity to cover immediate current liabilities using only the most liquid assets.

Short-Term Liquidity Trends (2022–2023)

Between March 2022 and December 2023, the cash ratio remained relatively stable, ranging from a low of 0.40 in March 2023 to a peak of 0.51 in June 2023 and December 2022. During this interval, total cash assets fluctuated between 7.2 billion and 10.1 billion, while current liabilities stayed within a narrow band of approximately 17.2 billion to 20.0 billion.

Liquidity Peak and Subsequent Variance (2024–2025)

A notable spike in the cash ratio occurred in March 2024, reaching 0.73. This peak was driven by a simultaneous increase in total cash assets to 12.0 billion and a reduction in current liabilities to 16.5 billion. Following this peak, the ratio experienced a correction to 0.47 in June 2024 before trending upward again to reach 0.59 by September 2025, coinciding with the period's highest cash asset balance of 13.4 billion.

Recent Liquidity Compression (2026)

A downward trend is observed in the first half of 2026. By June 2026, the cash ratio returned to 0.40, representing its lowest point in the analyzed sequence. This decline is attributed to a sharp reduction in total cash assets to 9.2 billion occurring alongside a sustained increase in current liabilities, which reached 23.2 billion.