Microsoft Excel LibreOffice Calc

Honeywell International Inc. (HON)


Analysis of Solvency Ratios

Beginner level


Solvency Ratios (Summary)

Honeywell International Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Debt Ratios
Debt to equity 0.89 1.04 0.81 0.66 0.49
Debt to capital 0.47 0.51 0.45 0.40 0.33
Debt to assets 0.28 0.30 0.29 0.24 0.19
Financial leverage 3.18 3.44 2.80 2.70 2.57
Coverage Ratios
Interest coverage 21.40 22.84 20.07 22.25 19.30
Fixed charge coverage 11.30 10.85 9.89 10.41 8.88

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).

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 deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
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 deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Honeywell International Inc.’s debt to assets ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Honeywell International Inc.’s financial leverage ratio increased from 2016 to 2017 but then slightly decreased from 2017 to 2018.

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 improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 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 2016 to 2017 and from 2017 to 2018.

Debt to Equity

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Commercial paper and other short-term borrowings 3,586  3,958  3,366  5,937  1,698 
Current maturities of long-term debt 2,872  1,351  227  577  939 
Long-term debt, excluding current maturities 9,756  12,573  12,182  5,554  6,046 
Total debt 16,214  17,882  15,775  12,068  8,683 
 
Total Honeywell shareowners’ equity 18,180  17,276  19,369  18,283  17,657 
Solvency Ratio
Debt to equity1 0.89 1.04 0.81 0.66 0.49
Benchmarks
Debt to Equity, Competitors2
3M Co. 1.50 1.21 1.14 0.93 0.53
Danaher Corp. 0.35 0.40 0.53 0.54 0.15
General Electric Co. 3.55 2.09 1.80 2.02 2.85
Debt to Equity, Sector
General Industrials 1.73 1.48 1.37 1.54
Debt to Equity, Industry
Industrials 1.51 1.36 1.31 1.30

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).

1 2018 Calculation
Debt to equity = Total debt ÷ Total Honeywell shareowners’ equity
= 16,214 ÷ 18,180 = 0.89

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 deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Debt to Capital

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Commercial paper and other short-term borrowings 3,586  3,958  3,366  5,937  1,698 
Current maturities of long-term debt 2,872  1,351  227  577  939 
Long-term debt, excluding current maturities 9,756  12,573  12,182  5,554  6,046 
Total debt 16,214  17,882  15,775  12,068  8,683 
Total Honeywell shareowners’ equity 18,180  17,276  19,369  18,283  17,657 
Total capital 34,394  35,158  35,144  30,351  26,340 
Solvency Ratio
Debt to capital1 0.47 0.51 0.45 0.40 0.33
Benchmarks
Debt to Capital, Competitors2
3M Co. 0.60 0.55 0.53 0.48 0.34
Danaher Corp. 0.26 0.29 0.35 0.35 0.13
General Electric Co. 0.78 0.68 0.64 0.67 0.74
Debt to Capital, Sector
General Industrials 0.63 0.60 0.58 0.61
Debt to Capital, Industry
Industrials 0.60 0.58 0.57 0.56

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).

1 2018 Calculation
Debt to capital = Total debt ÷ Total capital
= 16,214 ÷ 34,394 = 0.47

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 deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Debt to Assets

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Commercial paper and other short-term borrowings 3,586  3,958  3,366  5,937  1,698 
Current maturities of long-term debt 2,872  1,351  227  577  939 
Long-term debt, excluding current maturities 9,756  12,573  12,182  5,554  6,046 
Total debt 16,214  17,882  15,775  12,068  8,683 
 
Total assets 57,773  59,387  54,146  49,316  45,451 
Solvency Ratio
Debt to assets1 0.28 0.30 0.29 0.24 0.19
Benchmarks
Debt to Assets, Competitors2
3M Co. 0.40 0.37 0.36 0.33 0.22
Danaher Corp. 0.20 0.23 0.27 0.27 0.09
General Electric Co. 0.36 0.36 0.37 0.40 0.56
Debt to Assets, Sector
General Industrials 0.33 0.34 0.35 0.38
Debt to Assets, Industry
Industrials 0.31 0.31 0.30 0.31

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).

1 2018 Calculation
Debt to assets = Total debt ÷ Total assets
= 16,214 ÷ 57,773 = 0.28

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 deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Financial Leverage

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Total assets 57,773  59,387  54,146  49,316  45,451 
Total Honeywell shareowners’ equity 18,180  17,276  19,369  18,283  17,657 
Solvency Ratio
Financial leverage1 3.18 3.44 2.80 2.70 2.57
Benchmarks
Financial Leverage, Competitors2
3M Co. 3.73 3.29 3.20 2.79 2.39
Danaher Corp. 1.70 1.77 1.97 2.04 1.58
General Electric Co. 9.98 5.88 4.82 5.01 5.06
Financial Leverage, Sector
General Industrials 5.18 4.37 3.87 4.10
Financial Leverage, Industry
Industrials 4.86 4.45 4.36 4.19

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).

1 2018 Calculation
Financial leverage = Total assets ÷ Total Honeywell shareowners’ equity
= 57,773 ÷ 18,180 = 3.18

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 increased from 2016 to 2017 but then slightly decreased from 2017 to 2018.

Interest Coverage

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell 6,765  1,655  4,809  4,768  4,239 
Add: Net income attributable to noncontrolling interest 63  43  37  79  90 
Add: Income tax expense 659  5,204  1,601  1,739  1,489 
Add: Interest and other financial charges 367  316  338  310  318 
Earnings before interest and tax (EBIT) 7,854  7,218  6,785  6,896  6,136 
Solvency Ratio
Interest coverage1 21.40 22.84 20.07 22.25 19.30
Benchmarks
Interest Coverage, Competitors2
3M Co. 21.00 24.44 36.44 46.79 50.48
Danaher Corp. 21.92 19.06 15.16 21.42 29.38
General Electric Co. -2.98 -0.81 2.80 3.36 2.82
Interest Coverage, Sector
General Industrials 0.60 2.52 5.38 7.10
Interest Coverage, Industry
Industrials 7.01 7.95 8.24 10.83

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).

1 2018 Calculation
Interest coverage = EBIT ÷ Interest expense
= 7,854 ÷ 367 = 21.40

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 improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

Fixed Charge Coverage

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell 6,765  1,655  4,809  4,768  4,239 
Add: Net income attributable to noncontrolling interest 63  43  37  79  90 
Add: Income tax expense 659  5,204  1,601  1,739  1,489 
Add: Interest and other financial charges 367  316  338  310  318 
Earnings before interest and tax (EBIT) 7,854  7,218  6,785  6,896  6,136 
Add: Rent expense 360  385  387  390  420 
Earnings before fixed charges and tax 8,214  7,603  7,172  7,286  6,556 
 
Interest and other financial charges 367  316  338  310  318 
Rent expense 360  385  387  390  420 
Fixed charges 727  701  725  700  738 
Solvency Ratio
Fixed charge coverage1 11.30 10.85 9.89 10.41 8.88
Benchmarks
Fixed Charge Coverage, Competitors2
3M Co. 10.42 12.35 14.64 15.67 15.82
Danaher Corp. 8.49 8.14 7.46 8.84 10.82
General Electric Co. -1.77 -0.30 2.07 2.74 2.58
Fixed Charge Coverage, Sector
General Industrials 0.69 1.90 3.70 4.97
Fixed Charge Coverage, Industry
Industrials 4.19 4.60 4.79 5.89

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).

1 2018 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 8,214 ÷ 727 = 11.30

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 2016 to 2017 and from 2017 to 2018.