Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Common Stock Valuation Ratios
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Solvency Ratios (Summary)
Honeywell International Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analyzed financial ratios reveal evolving trends in the company's leverage and ability to cover interest expenses over the observed periods.
- Debt to Equity
- This ratio started at 0.91 in the first quarter of 2020 and showed an overall increasing trend with fluctuations, reaching 1.88 by the first quarter of 2025. Notably, there was a significant rise beginning in early 2024, indicating that the company increasingly relied on debt relative to shareholders' equity during this later interval.
- Debt to Capital
- The debt to capital ratio was initially 0.48 in March 2020, rising gradually and exhibiting minor fluctuations throughout the quarters. It moved upwards to 0.65 by the first quarter of 2025. This steady increase suggests a growing proportion of debt in the company's total capital structure, with the most pronounced rises again occurring from 2024 onwards.
- Debt to Assets
- The debt to assets ratio experienced a moderate increase from 0.28 at the beginning of the data series to 0.44 by March 2025. The trend was relatively stable in the earlier periods but showed a more evident growth starting in 2023, which implies a higher leverage of the company's asset base by debt over time.
- Financial Leverage
- This metric indicated a general upward trend from 3.25 in early 2020 to a higher value of 4.31 in the first quarter of 2025. The data reflect growing dependence on debt financing relative to equity. The increase in financial leverage was especially marked in the last two years, consistent with the trends in the other leverage ratios.
- Interest Coverage
- The interest coverage ratio, initially reported from the third quarter of 2020, showed a high level in the range of approximately 17.75 to 22.09 up to the end of 2021, indicating strong earnings relative to interest expenses. However, from 2022 onwards, the ratio steadily declined to 7.43 by the first quarter of 2025. This downward trend suggests a waning ability to cover interest charges comfortably, coinciding with increasing leverage.
In summary, the data indicate an overall increase in leverage ratios over the period analyzed, with a significant rise in debt levels relative to equity, capital, and assets, particularly from 2023 onward. Concurrently, the company's capacity to cover interest expenses has diminished substantially since 2022, pointing to growing financial risk associated with the higher debt burden. Close monitoring of debt management and operational earnings is advisable in light of these trends.
Debt Ratios
Coverage Ratios
Debt to Equity
Honeywell International Inc., debt to equity calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Commercial paper and other short-term borrowings | ||||||||||||||||||||||||||||
| Current maturities of long-term debt | ||||||||||||||||||||||||||||
| Long-term debt, excluding current maturities | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total Honeywell shareowners’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to equity = Total debt ÷ Total Honeywell shareowners’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends concerning the company's debt levels, equity position, and leverage ratio over the observed periods.
- Total Debt
- Total debt exhibited a general increasing trend from March 2020 to March 2025. The debt rose significantly from $16,112 million in March 2020 to peak levels exceeding $30,000 million by late 2024 and early 2025. There were fluctuations within this overall increase, including a notable debt reduction from December 2021 to September 2022, followed by a sharp increase starting in late 2023.
- Total Honeywell Shareowners' Equity
- Shareowners’ equity showed a relatively stable pattern with slight fluctuations around the $17,000 million mark for most of the period. After peaking around $18,569 million in December 2021, equity gradually declined to approximately $15,856 million by December 2023, followed by a partial recovery to $18,619 million by March 2025. This indicates some volatility in equity but no consistent upward or downward trend over the five years.
- Debt to Equity Ratio
- The debt to equity ratio reflected the interplay between rising debt and fluctuating equity levels. Starting at 0.91 in March 2020, the ratio increased steadily, peaking at 1.88 by March 2025. This indicates a growing leverage position over time. Periods of ratio decrease, such as in late 2022, aligned with debt reductions and/or equity stabilization, but the overriding trajectory was upward, suggesting increased reliance on debt financing relative to equity.
Overall, the data points to a progressive intensification of leverage, with debt levels increasing considerably faster than equity. The management appears to have utilized debt more aggressively towards the end of the observed period, which could imply strategic financing choices or increased capital requirements. The stability in equity suggests no major shifts in shareholder investments or capital restructuring. However, the rising debt to equity ratio may warrant monitoring for potential impacts on financial risk and credit metrics.
Debt to Capital
Honeywell International Inc., debt to capital calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Commercial paper and other short-term borrowings | ||||||||||||||||||||||||||||
| Current maturities of long-term debt | ||||||||||||||||||||||||||||
| Long-term debt, excluding current maturities | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total Honeywell shareowners’ equity | ||||||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited an overall upward trend from March 31, 2020, to March 31, 2025. Initially, the debt rose sharply from 16,112 million USD to over 22,000 million USD by mid-2020, followed by a relatively stable period fluctuating around 19,000 to 21,000 million USD from 2021 through late 2023. From early 2024 onward, there was a notable increase, with debt levels reaching over 32,800 million USD by the first quarter of 2025. This reflects a significant rise in borrowing or liabilities toward the end of the observed timeline.
- Total Capital
- Total capital showed a somewhat fluctuating but generally increasing pattern over the period reviewed. Starting at approximately 33,756 million USD in March 2020, total capital increased steadily to a peak near 40,000 million USD by mid-2020, then experienced slight declines and fluctuations until late 2022. From early 2023, capital figures demonstrated a gradual upward movement, culminating in a value exceeding 50,000 million USD by the first quarter of 2025. Despite intermittent declines, the overall trajectory suggests growth in the company's capital base over the five years.
- Debt to Capital Ratio
- This ratio reflected fluctuations accompanied by a general rising trend. Beginning at 0.48 in March 2020, the ratio increased sharply to about 0.55 in mid-2020 and remained relatively stable around 0.54 to 0.56 through 2021 and early 2022. Notable dips occurred during 2022, particularly reaching near 0.49, suggesting a period where total capital growth outpaced debt accumulation. However, from late 2022 forward, the ratio steadily climbed, crossing the 0.60 threshold in 2024 and peaking at 0.65 in early 2025, indicating an increasing reliance on debt financing within the overall capital structure.
- Summary
- The data reveals a pattern of increasing leverage over time, with debt levels rising significantly, especially in the later periods. Although total capital has grown overall, the proportion of debt to capital has increased correspondingly, suggesting a strategic shift or need to utilize more debt financing. Periods of stability and minor declines are evident, but the dominant trend is toward higher indebtedness relative to the company’s capital. Monitoring this trend will be essential to assess the implications for financial risk and cost of capital in the future.
Debt to Assets
Honeywell International Inc., debt to assets calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Commercial paper and other short-term borrowings | ||||||||||||||||||||||||||||
| Current maturities of long-term debt | ||||||||||||||||||||||||||||
| Long-term debt, excluding current maturities | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited a generally upward trajectory over the observed period. Beginning at approximately $16.1 billion in early 2020, the debt level rose sharply to above $22 billion by mid-2020, then fluctuated moderately around $21 billion through 2021. In 2022, the total debt showed some volatility but remained near the $19 billion to $20 billion range. From late 2022 into 2024, the trend was distinctly upward again, with debt increasing steadily to reach over $32.8 billion by the first quarter of 2025, indicating a significant rise in leverage during this period.
- Total Assets
- Total assets demonstrated relative stability with moderate fluctuations throughout most quarters. Starting near $57.4 billion in the first quarter of 2020, assets increased gradually to a peak just above $64 billion by the end of 2020. The levels then remained relatively consistent, hovering between $60 billion and $64 billion until early 2023. Subsequently, total assets began a more pronounced upward trend throughout 2023 and into 2024, reaching approximately $75.2 billion by the first quarter of 2025. This suggests steady asset growth or acquisition activity over the recent periods.
- Debt to Assets Ratio
- The debt to assets ratio reflects changes in both debt and asset levels and moved within a moderate range. Initially, the ratio rose from 0.28 in early 2020 to around 0.35 mid-2020, indicating an increase in leverage relative to asset base. It remained fairly steady around 0.33 to 0.35 throughout 2021, then decreased slightly to approximately 0.28 by late 2022. From that point onward, the ratio started increasing again, reaching a high of 0.44 by the first quarter of 2025. This upward shift indicates that debt grew at a faster pace than assets, resulting in higher leverage and potentially increased financial risk in the most recent periods.
- Summary
- Over the entire span, total debt increased substantially, particularly notable from mid-2022 onward. Total assets grew as well, but at a somewhat slower and steadier pace. Consequently, the debt to assets ratio declined initially after peaking in 2020 but then rose significantly in the later period, signaling a rising leverage position. This development warrants attention to the company’s financial structure and ability to manage debt relative to assets in upcoming periods.
Financial Leverage
Honeywell International Inc., financial leverage calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Total Honeywell shareowners’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Financial leverage = Total assets ÷ Total Honeywell shareowners’ equity
= ÷ =
2 Click competitor name to see calculations.
The data reveals several notable trends and changes over the analyzed periods regarding the company's balance sheet components and financial leverage.
- Total assets
- Total assets exhibited a general cyclical fluctuation with some periods of decline and recovery. After rising from approximately 57.4 billion USD at the end of Q1 2020 to a peak near 64.6 billion USD at year-end 2020, total assets started a gradual decline into 2022, reaching a low point around 60.3 billion USD by Q3 2022. Subsequently, assets increased again, notably from Q4 2023 onward, culminating in a significant rise to over 75 billion USD by Q1 2025. This pattern indicates some volatility but an overall upward trend in the most recent quarters.
- Total Honeywell shareowners’ equity
- The equity base showed a relatively stable but slightly volatile profile. It started near 17.6 billion USD in early 2020, fluctuated generally in the range of 17 to 18.5 billion USD through 2021, and experienced some decreases during 2022, falling to approximately 16.7 billion USD towards the end of that year. Equity began to recover modestly through 2023 but dropped again in late 2023 and early 2024, with a low of roughly 15.9 billion USD at Q4 2023 and Q1 2024. It rebounded subsequently toward 18.6 billion USD at Q1 2025. The variations suggest some impacts on retained earnings or other equity elements over the period but no strong sustained growth in equity compared to asset growth.
- Financial leverage (Total assets to equity ratio)
- Financial leverage showed a generally increasing trend over time, indicating rising use of debt relative to equity. Beginning at a leverage ratio slightly above 3.2x in early 2020, the ratio edged upward with some fluctuations, reaching about 3.7x in late 2022. From that point, leverage escalated more noticeably, reaching a peak over 4.3x by early 2025. This indicates the company has increasingly financed its assets through liabilities rather than equity, which could imply a higher debt burden or strategic financial structuring focused on leverage.
In summary, the company’s total assets demonstrated growth with periods of contraction and recovery, while shareowners’ equity remained fairly stable but showed less growth relative to asset increases. The consistent rise in financial leverage over the periods analyzed suggests increasing reliance on debt financing, which could affect financial risk and capital structure. This trend warrants monitoring to assess implications for financial flexibility and risk exposure going forward.
Interest Coverage
Honeywell International Inc., interest coverage calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net income attributable to Honeywell | ||||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | ||||||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||||||
| Add: Interest and other financial charges | ||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Interest coverage
= (EBITQ1 2025
+ EBITQ4 2024
+ EBITQ3 2024
+ EBITQ2 2024)
÷ (Interest expenseQ1 2025
+ Interest expenseQ4 2024
+ Interest expenseQ3 2024
+ Interest expenseQ2 2024)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The data reveals trends in key financial metrics over multiple quarterly periods, reflecting shifts in operational performance and financial costs. Specifically, the focus is on Earnings Before Interest and Taxes (EBIT), Interest and Other Financial Charges, and the Interest Coverage ratio.
- Earnings before interest and tax (EBIT)
-
EBIT displays considerable volatility throughout the periods. It begins at 2008 million in March 2020, declines to a low point near 1249 million in September 2020, and then recovers with fluctuations thereafter. Noticeable peaks occur in September 2022 (2079 million) and September 2023 (2173 million), indicating intermittent improvements in operational earnings. However, EBIT again shows declines towards the end of the dataset, dropping to 1835 million in December 2024 before recovering slightly to 2170 million in March 2025. This pattern suggests cyclical or external factors influencing earnings.
- Interest and other financial charges
-
The financial charges trend upward over time, starting at 73 million in March 2020 and rising to 286 million by March 2025. This steady increase indicates growing debt levels or higher costs of borrowing. The acceleration of interest expenses is particularly prominent from late 2021 onward, reflecting potential changes in financing strategies or interest rate environments.
- Interest coverage ratio
-
The interest coverage ratio, representing EBIT divided by interest expense, demonstrates a declining trend across the periods, suggesting decreasing ability to cover interest expenses with operating earnings. Early values around 17 to 22 suggest strong coverage initially, but by December 2024, the ratio falls to about 7.82 and further to 7.43 in March 2025. Although still above critical risk thresholds, this downward trend signals increasing financial pressure and reduced margin of safety.
In summary, operational earnings show fluctuation with some periods of recovery but lack consistent upward momentum, while financial charges steadily grow, negatively impacting the interest coverage ratio. The combined effect points to increasing financial leverage and a gradually deteriorating position in terms of interest expense coverage, warranting close monitoring of financing costs and operational profitability.