Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Honeywell International Inc. (NYSE:HON)

Analysis of Solvency Ratios

Beginner level

Solvency Ratios (Summary)

Honeywell International Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Debt Ratios
Debt to equity 0.87 0.89 1.04 0.81 0.66
Debt to equity (including operating lease liability) 0.90 0.89 1.04 0.81 0.66
Debt to capital 0.46 0.47 0.51 0.45 0.40
Debt to capital (including operating lease liability) 0.47 0.47 0.51 0.45 0.40
Debt to assets 0.27 0.28 0.30 0.29 0.24
Debt to assets (including operating lease liability) 0.28 0.28 0.30 0.29 0.24
Financial leverage 3.17 3.18 3.44 2.80 2.70
Coverage Ratios
Interest coverage 22.17 21.40 22.84 20.07 22.25
Fixed charge coverage 14.06 11.30 10.85 9.89 10.41

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Honeywell International Inc.’s debt to equity ratio improved from 2017 to 2018 and from 2018 to 2019.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Honeywell International Inc.’s debt to equity ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Honeywell International Inc.’s debt to capital ratio improved from 2017 to 2018 and from 2018 to 2019.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Honeywell International Inc.’s debt to capital ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Honeywell International Inc.’s debt to assets ratio improved from 2017 to 2018 and from 2018 to 2019.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Honeywell International Inc.’s debt to assets ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Honeywell International Inc.’s financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Honeywell International Inc.’s interest coverage ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Honeywell International Inc.’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.

Debt to Equity

Honeywell International Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Commercial paper and other short-term borrowings 3,516  3,586  3,958  3,366  5,937 
Current maturities of long-term debt 1,376  2,872  1,351  227  577 
Long-term debt, excluding current maturities 11,110  9,756  12,573  12,182  5,554 
Total debt 16,002  16,214  17,882  15,775  12,068 
 
Total Honeywell shareowners’ equity 18,494  18,180  17,276  19,369  18,283 
Solvency Ratio
Debt to equity1 0.87 0.89 1.04 0.81 0.66
Benchmarks
Debt to Equity, Competitors2
3M Co. 2.02 1.49 1.21 1.13 0.92
General Electric Co. 3.21 3.55 2.09 1.80 2.02
Debt to Equity, Sector
General Industrials 2.24 2.39 1.79 1.55 1.72
Debt to Equity, Industry
Industrials 1.75 1.71 1.50 1.41 1.39

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
Debt to equity = Total debt ÷ Total Honeywell shareowners’ equity
= 16,002 ÷ 18,494 = 0.87

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Honeywell International Inc.’s debt to equity ratio improved from 2017 to 2018 and from 2018 to 2019.

Debt to Equity (including Operating Lease Liability)

Honeywell International Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Commercial paper and other short-term borrowings 3,516  3,586  3,958  3,366  5,937 
Current maturities of long-term debt 1,376  2,872  1,351  227  577 
Long-term debt, excluding current maturities 11,110  9,756  12,573  12,182  5,554 
Total debt 16,002  16,214  17,882  15,775  12,068 
Current operating lease liabilities 171  —  —  —  — 
Non-current operating lease liabilities 534  —  —  —  — 
Total debt (including operating lease liability) 16,707  16,214  17,882  15,775  12,068 
 
Total Honeywell shareowners’ equity 18,494  18,180  17,276  19,369  18,283 
Solvency Ratio
Debt to equity (including operating lease liability)1 0.90 0.89 1.04 0.81 0.66
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
3M Co. 2.10 1.49 1.21 1.13 0.92
General Electric Co. 3.32 3.55 2.09 1.80 2.02
Debt to Equity (including Operating Lease Liability), Sector
General Industrials 2.32 2.39 1.79 1.55 1.72
Debt to Equity (including Operating Lease Liability), Industry
Industrials 1.84 1.71 1.50 1.41 1.39

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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Honeywell shareowners’ equity
= 16,707 ÷ 18,494 = 0.90

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Honeywell International Inc.’s debt to equity ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Debt to Capital

Honeywell International Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Commercial paper and other short-term borrowings 3,516  3,586  3,958  3,366  5,937 
Current maturities of long-term debt 1,376  2,872  1,351  227  577 
Long-term debt, excluding current maturities 11,110  9,756  12,573  12,182  5,554 
Total debt 16,002  16,214  17,882  15,775  12,068 
Total Honeywell shareowners’ equity 18,494  18,180  17,276  19,369  18,283 
Total capital 34,496  34,394  35,158  35,144  30,351 
Solvency Ratio
Debt to capital1 0.46 0.47 0.51 0.45 0.40
Benchmarks
Debt to Capital, Competitors2
3M Co. 0.67 0.60 0.55 0.53 0.48
General Electric Co. 0.76 0.78 0.68 0.64 0.67
Debt to Capital, Sector
General Industrials 0.69 0.70 0.64 0.61 0.63
Debt to Capital, Industry
Industrials 0.64 0.63 0.60 0.58 0.58

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
Debt to capital = Total debt ÷ Total capital
= 16,002 ÷ 34,496 = 0.46

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Honeywell International Inc.’s debt to capital ratio improved from 2017 to 2018 and from 2018 to 2019.

Debt to Capital (including Operating Lease Liability)

Honeywell International Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Commercial paper and other short-term borrowings 3,516  3,586  3,958  3,366  5,937 
Current maturities of long-term debt 1,376  2,872  1,351  227  577 
Long-term debt, excluding current maturities 11,110  9,756  12,573  12,182  5,554 
Total debt 16,002  16,214  17,882  15,775  12,068 
Current operating lease liabilities 171  —  —  —  — 
Non-current operating lease liabilities 534  —  —  —  — 
Total debt (including operating lease liability) 16,707  16,214  17,882  15,775  12,068 
Total Honeywell shareowners’ equity 18,494  18,180  17,276  19,369  18,283 
Total capital (including operating lease liability) 35,201  34,394  35,158  35,144  30,351 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.47 0.47 0.51 0.45 0.40
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
3M Co. 0.68 0.60 0.55 0.53 0.48
General Electric Co. 0.77 0.78 0.68 0.64 0.67
Debt to Capital (including Operating Lease Liability), Sector
General Industrials 0.70 0.70 0.64 0.61 0.63
Debt to Capital (including Operating Lease Liability), Industry
Industrials 0.65 0.63 0.60 0.58 0.58

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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 16,707 ÷ 35,201 = 0.47

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Honeywell International Inc.’s debt to capital ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Debt to Assets

Honeywell International Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Commercial paper and other short-term borrowings 3,516  3,586  3,958  3,366  5,937 
Current maturities of long-term debt 1,376  2,872  1,351  227  577 
Long-term debt, excluding current maturities 11,110  9,756  12,573  12,182  5,554 
Total debt 16,002  16,214  17,882  15,775  12,068 
 
Total assets 58,679  57,773  59,387  54,146  49,316 
Solvency Ratio
Debt to assets1 0.27 0.28 0.30 0.29 0.24
Benchmarks
Debt to Assets, Competitors2
3M Co. 0.45 0.40 0.37 0.35 0.33
General Electric Co. 0.34 0.36 0.36 0.37 0.40
Debt to Assets, Sector
General Industrials 0.34 0.35 0.35 0.36 0.38
Debt to Assets, Industry
Industrials 0.32 0.32 0.32 0.31 0.32

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
Debt to assets = Total debt ÷ Total assets
= 16,002 ÷ 58,679 = 0.27

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Honeywell International Inc.’s debt to assets ratio improved from 2017 to 2018 and from 2018 to 2019.

Debt to Assets (including Operating Lease Liability)

Honeywell International Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Commercial paper and other short-term borrowings 3,516  3,586  3,958  3,366  5,937 
Current maturities of long-term debt 1,376  2,872  1,351  227  577 
Long-term debt, excluding current maturities 11,110  9,756  12,573  12,182  5,554 
Total debt 16,002  16,214  17,882  15,775  12,068 
Current operating lease liabilities 171  —  —  —  — 
Non-current operating lease liabilities 534  —  —  —  — 
Total debt (including operating lease liability) 16,707  16,214  17,882  15,775  12,068 
 
Total assets 58,679  57,773  59,387  54,146  49,316 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.28 0.28 0.30 0.29 0.24
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
3M Co. 0.47 0.40 0.37 0.35 0.33
General Electric Co. 0.35 0.36 0.36 0.37 0.40
Debt to Assets (including Operating Lease Liability), Sector
General Industrials 0.36 0.35 0.35 0.36 0.38
Debt to Assets (including Operating Lease Liability), Industry
Industrials 0.34 0.32 0.32 0.31 0.32

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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 16,707 ÷ 58,679 = 0.28

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Honeywell International Inc.’s debt to assets ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Financial Leverage

Honeywell International Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Total assets 58,679  57,773  59,387  54,146  49,316 
Total Honeywell shareowners’ equity 18,494  18,180  17,276  19,369  18,283 
Solvency Ratio
Financial leverage1 3.17 3.18 3.44 2.80 2.70
Benchmarks
Financial Leverage, Competitors2
3M Co. 4.44 3.73 3.29 3.20 2.79
General Electric Co. 9.40 9.98 5.88 4.82 5.01
Financial Leverage, Sector
General Industrials 6.49 6.84 5.11 4.29 4.48
Financial Leverage, Industry
Industrials 5.40 5.26 4.71 4.60 4.40

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
Financial leverage = Total assets ÷ Total Honeywell shareowners’ equity
= 58,679 ÷ 18,494 = 3.17

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Honeywell International Inc.’s financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.

Interest Coverage

Honeywell International Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell 6,143  6,765  1,655  4,809  4,768 
Add: Net income attributable to noncontrolling interest 87  63  43  37  79 
Add: Income tax expense 1,329  659  5,204  1,601  1,739 
Add: Interest and other financial charges 357  367  316  338  310 
Earnings before interest and tax (EBIT) 7,916  7,854  7,218  6,785  6,896 
Solvency Ratio
Interest coverage1 22.17 21.40 22.84 20.07 22.25
Benchmarks
Interest Coverage, Competitors2
3M Co. 13.75 21.00 24.44 36.44 46.79
General Electric Co. 1.27 -2.98 -0.81 2.80 3.36
Interest Coverage, Sector
General Industrials 3.87 0.02 2.03 5.05 6.51
Interest Coverage, Industry
Industrials 6.60 6.54 7.48 7.79 9.86

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
Interest coverage = EBIT ÷ Interest expense
= 7,916 ÷ 357 = 22.17

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Honeywell International Inc.’s interest coverage ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

Fixed Charge Coverage

Honeywell International Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell 6,143  6,765  1,655  4,809  4,768 
Add: Net income attributable to noncontrolling interest 87  63  43  37  79 
Add: Income tax expense 1,329  659  5,204  1,601  1,739 
Add: Interest and other financial charges 357  367  316  338  310 
Earnings before interest and tax (EBIT) 7,916  7,854  7,218  6,785  6,896 
Add: Operating lease cost 222  360  385  387  390 
Earnings before fixed charges and tax 8,138  8,214  7,603  7,172  7,286 
 
Interest and other financial charges 357  367  316  338  310 
Operating lease cost 222  360  385  387  390 
Fixed charges 579  727  701  725  700 
Solvency Ratio
Fixed charge coverage1 14.06 11.30 10.85 9.89 10.41
Benchmarks
Fixed Charge Coverage, Competitors2
3M Co. 8.56 10.42 12.35 14.64 15.67
General Electric Co. 1.09 -1.77 -0.30 2.07 2.74
Fixed Charge Coverage, Sector
General Industrials 2.89 0.31 1.60 3.53 4.69
Fixed Charge Coverage, Industry
Industrials 4.24 4.01 4.43 4.63 5.55

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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 8,138 ÷ 579 = 14.06

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Honeywell International Inc.’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.