Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
Honeywell International Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
The solvency profile of the organization exhibits a prolonged period of increasing leverage and deteriorating coverage from March 2022 through March 2026, followed by a sharp and significant deleveraging event in the second and third quarters of 2026.
- Debt to Equity and Debt to Capital
- A consistent upward trajectory is observed in the Debt to Equity ratio, which rose from 1.05 in March 2022 to a peak of 2.70 by March 2026. Similarly, the Debt to Capital ratio climbed from 0.51 to 0.73 over the same period, indicating a growing reliance on borrowed funds relative to shareholder equity and total capital. However, this trend reversed abruptly in 2026, with the Debt to Equity ratio falling sharply to 0.74 by September 30, 2026, and the Debt to Capital ratio decreasing to 0.43.
- Debt to Assets and Financial Leverage
- The Debt to Assets ratio showed a steady increase from 0.31 in early 2022 to a high of 0.50 in March 2026, suggesting that a larger portion of the asset base was financed through debt. Financial leverage mirrored this trend, escalating from 3.45 to a peak of 5.44. This period of expanding leverage was countered by a rapid contraction starting in June 2026, with financial leverage dropping to 2.37 and the Debt to Assets ratio returning to 0.31 by September 2026.
- Interest Coverage Ratio
- There is a pronounced inverse correlation between the leverage ratios and the interest coverage ratio. The ability to service interest payments declined significantly from a high of 21.35 in March 2022 to a low of 4.32 in March 2026. This sustained decline indicates increased financial pressure and a reduction in the safety margin for debt obligations. Following the deleveraging observed in the subsequent quarters, the interest coverage ratio recovered to 8.38 by September 30, 2026.
In summary, the financial data reveals a four-year cycle of increasing solvency risk that culminated in March 2026, followed by a rapid correction that returned the company's solvency metrics to levels lower than those recorded at the start of the analysis period.
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Debt to Equity
Honeywell International Inc., debt to equity calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Commercial paper and other short-term borrowings | 2,424) | 2,478) | 4,630) | 5,893) | 6,873) | 6,271) | 5,756) | 4,273) | 3,135) | 4,548) | 1,819) | 2,085) | 1,933) | 2,828) | 3,555) | 2,717) | 3,434) | 3,487) | 3,526) | ||||||
| Current maturities of long-term debt | 3,783) | 5,282) | 3,099) | 1,546) | 72) | 74) | 1,332) | 1,347) | 1,760) | 2,519) | 1,254) | 1,796) | 1,670) | 945) | 937) | 1,730) | 1,315) | 3,099) | 3,207) | ||||||
| Long-term debt, excluding current maturities | 10,386) | 26,228) | 29,010) | 27,141) | 30,092) | 30,167) | 25,744) | 25,479) | 25,934) | 20,865) | 22,183) | 16,562) | 16,683) | 17,600) | 14,670) | 15,123) | 12,236) | 12,491) | 12,636) | ||||||
| Total debt | 16,593) | 33,988) | 36,739) | 34,580) | 37,037) | 36,512) | 32,832) | 31,099) | 30,829) | 27,932) | 25,256) | 20,443) | 20,286) | 21,373) | 19,162) | 19,570) | 16,985) | 19,077) | 19,369) | ||||||
| Total Honeywell Technologies shareowners’ equity | 22,417) | 18,537) | 13,590) | 13,904) | 16,782) | 16,095) | 17,463) | 18,619) | 17,406) | 16,947) | 16,454) | 15,856) | 17,231) | 17,299) | 16,919) | 16,697) | 17,707) | 17,541) | 18,365) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | 0.74 | 1.83 | 2.70 | 2.49 | 2.21 | 2.27 | 1.88 | 1.67 | 1.77 | 1.65 | 1.53 | 1.29 | 1.18 | 1.24 | 1.13 | 1.17 | 0.96 | 1.09 | 1.05 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 7.01 | 7.52 | 7.89 | 9.92 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | — | 2.33 | 2.31 | 2.03 | 2.01 | 2.18 | 2.14 | 1.97 | 1.95 | 2.18 | 2.15 | 1.94 | 1.81 | 2.07 | 2.04 | 2.33 | 2.34 | 2.35 | 2.20 | ||||||
| Eaton Corp. plc | — | 1.02 | 1.07 | 0.51 | 0.57 | 0.59 | 0.54 | 0.50 | 0.49 | 0.51 | 0.48 | 0.49 | 0.50 | 0.52 | 0.50 | 0.51 | 0.56 | 0.59 | 0.58 | ||||||
| GE Aerospace | 1.10 | 1.09 | 1.12 | 1.10 | 1.11 | 0.99 | 1.02 | 1.00 | 1.06 | 1.06 | 0.69 | 0.77 | 0.73 | 0.70 | 0.71 | 0.89 | 0.97 | 0.94 | 0.86 | ||||||
| Lockheed Martin Corp. | 2.04 | 2.34 | 2.76 | 3.23 | 3.59 | 4.06 | 3.04 | 3.20 | 2.68 | 3.12 | 2.92 | 2.55 | 1.88 | 1.90 | 1.62 | 1.68 | 0.96 | 1.02 | 1.16 | ||||||
| RTX Corp. | 0.54 | 0.56 | 0.56 | 0.58 | 0.61 | 0.67 | 0.67 | 0.69 | 0.69 | 0.71 | 0.71 | 0.73 | 0.51 | 0.49 | 0.47 | 0.44 | 0.48 | 0.45 | 0.43 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2026 Calculation
Debt to equity = Total debt ÷ Total Honeywell Technologies shareowners’ equity
= 16,593 ÷ 22,417 = 0.74
2 Click competitor name to see calculations.
The solvency profile exhibits a trajectory characterized by an initial period of relative stability, followed by a significant escalation in leverage, and concluding with a sharp reduction in the debt-to-equity ratio. The overall capital structure shifted from a balanced position to a high-leverage state before undergoing a rapid deleveraging event in late 2026.
- Initial Stability and Moderate Leverage (March 2022 – December 2023)
- During this period, the debt-to-equity ratio remained relatively contained, fluctuating between a low of 0.96 in September 2022 and a high of 1.29 in December 2023. Total debt remained largely stable, oscillating between approximately 17 billion and 21 billion US dollars, while shareowners' equity stayed within a narrow range of 15.8 billion to 18.4 billion US dollars.
- Leverage Expansion Phase (March 2024 – March 2026)
- A sustained upward trend in leverage is observed starting in early 2024. Total debt increased aggressively from 25.3 billion US dollars in March 2024 to a peak of 37.0 billion US dollars in June 2025. Concurrently, shareowners' equity experienced a general decline, reaching a low of 13.6 billion US dollars in March 2026. This divergence resulted in a steep increase in the debt-to-equity ratio, which climbed from 1.53 to a peak of 2.70, indicating a significant increase in financial risk and a higher reliance on borrowed capital.
- Rapid Deleveraging and Capital Restructuring (June 2026 – September 2026)
- A dramatic reversal in the solvency trend occurred in the final two quarters of the analyzed period. Total debt fell sharply from 34.0 billion US dollars in June 2026 to 16.6 billion US dollars by September 2026. Simultaneously, shareowners' equity rose significantly to 22.4 billion US dollars. This combined effect led to a precipitous drop in the debt-to-equity ratio, which fell from 1.83 to 0.74, marking the lowest leverage level across the entire analyzed timeframe.
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Debt to Capital
Honeywell International Inc., debt to capital calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Commercial paper and other short-term borrowings | 2,424) | 2,478) | 4,630) | 5,893) | 6,873) | 6,271) | 5,756) | 4,273) | 3,135) | 4,548) | 1,819) | 2,085) | 1,933) | 2,828) | 3,555) | 2,717) | 3,434) | 3,487) | 3,526) | ||||||
| Current maturities of long-term debt | 3,783) | 5,282) | 3,099) | 1,546) | 72) | 74) | 1,332) | 1,347) | 1,760) | 2,519) | 1,254) | 1,796) | 1,670) | 945) | 937) | 1,730) | 1,315) | 3,099) | 3,207) | ||||||
| Long-term debt, excluding current maturities | 10,386) | 26,228) | 29,010) | 27,141) | 30,092) | 30,167) | 25,744) | 25,479) | 25,934) | 20,865) | 22,183) | 16,562) | 16,683) | 17,600) | 14,670) | 15,123) | 12,236) | 12,491) | 12,636) | ||||||
| Total debt | 16,593) | 33,988) | 36,739) | 34,580) | 37,037) | 36,512) | 32,832) | 31,099) | 30,829) | 27,932) | 25,256) | 20,443) | 20,286) | 21,373) | 19,162) | 19,570) | 16,985) | 19,077) | 19,369) | ||||||
| Total Honeywell Technologies shareowners’ equity | 22,417) | 18,537) | 13,590) | 13,904) | 16,782) | 16,095) | 17,463) | 18,619) | 17,406) | 16,947) | 16,454) | 15,856) | 17,231) | 17,299) | 16,919) | 16,697) | 17,707) | 17,541) | 18,365) | ||||||
| Total capital | 39,010) | 52,525) | 50,329) | 48,484) | 53,819) | 52,607) | 50,295) | 49,718) | 48,235) | 44,879) | 41,710) | 36,299) | 37,517) | 38,672) | 36,081) | 36,267) | 34,692) | 36,618) | 37,734) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | 0.43 | 0.65 | 0.73 | 0.71 | 0.69 | 0.69 | 0.65 | 0.63 | 0.64 | 0.62 | 0.61 | 0.56 | 0.54 | 0.55 | 0.53 | 0.54 | 0.49 | 0.52 | 0.51 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 0.88 | 0.88 | 0.89 | 0.91 | 1.18 | 1.07 | 1.07 | 1.08 | 1.69 | 1.45 | 1.55 | 1.49 | 1.47 | 1.42 | 1.39 | 1.39 | 1.45 | 1.35 | 1.36 | ||||||
| Caterpillar Inc. | — | 0.70 | 0.70 | 0.67 | 0.67 | 0.69 | 0.68 | 0.66 | 0.66 | 0.69 | 0.68 | 0.66 | 0.64 | 0.67 | 0.67 | 0.70 | 0.70 | 0.70 | 0.69 | ||||||
| Eaton Corp. plc | — | 0.50 | 0.52 | 0.34 | 0.36 | 0.37 | 0.35 | 0.33 | 0.33 | 0.34 | 0.32 | 0.33 | 0.33 | 0.34 | 0.34 | 0.34 | 0.36 | 0.37 | 0.37 | ||||||
| GE Aerospace | 0.52 | 0.52 | 0.53 | 0.52 | 0.53 | 0.50 | 0.50 | 0.50 | 0.51 | 0.51 | 0.41 | 0.43 | 0.42 | 0.41 | 0.41 | 0.47 | 0.49 | 0.48 | 0.46 | ||||||
| Lockheed Martin Corp. | 0.67 | 0.70 | 0.73 | 0.76 | 0.78 | 0.80 | 0.75 | 0.76 | 0.73 | 0.76 | 0.74 | 0.72 | 0.65 | 0.66 | 0.62 | 0.63 | 0.49 | 0.50 | 0.54 | ||||||
| RTX Corp. | 0.35 | 0.36 | 0.36 | 0.37 | 0.38 | 0.40 | 0.40 | 0.41 | 0.41 | 0.42 | 0.41 | 0.42 | 0.34 | 0.33 | 0.32 | 0.31 | 0.32 | 0.31 | 0.30 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 16,593 ÷ 39,010 = 0.43
2 Click competitor name to see calculations.
An analysis of the solvency metrics reveals a period of progressive leverage increase followed by a sharp deleveraging phase. From March 2022 through March 2026, there was a consistent upward trajectory in the reliance on debt to fund capital requirements, reaching a peak before a significant reduction in the latter half of 2026.
- Debt to Capital Ratio Trends
- The ratio remained relatively stable between 0.49 and 0.56 from March 2022 through December 2023. A more aggressive increase began in March 2024, with the ratio climbing from 0.61 to a peak of 0.73 by March 2026. This represents a substantial shift toward a more debt-heavy capital structure over a two-year period. However, this trend reversed abruptly in 2026, with the ratio falling to 0.65 in June and plunging to 0.43 by September 2026, the lowest level recorded in the analyzed timeframe.
- Total Debt Evolution
- Total debt exhibited a steady expansion, rising from US$ 19,369 million in March 2022 to a peak of US$ 37,037 million in June 2025. While there were minor fluctuations in 2022 and 2023, the growth accelerated through 2024 and 2025. A dramatic contraction occurred in the final period of the analysis, where total debt fell to US$ 16,593 million by September 2026, indicating a massive repayment or restructuring of obligations.
- Total Capital Scaling
- Total capital mirrored the growth of debt, increasing from US$ 37,734 million in March 2022 to US$ 53,819 million in June 2025. The expansion of total capital supported the increase in total debt, though the debt component grew at a faster rate, as evidenced by the rising debt to capital ratio. Similar to the debt trend, total capital experienced a significant reduction to US$ 39,010 million by September 2026.
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Debt to Assets
Honeywell International Inc., debt to assets calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Commercial paper and other short-term borrowings | 2,424) | 2,478) | 4,630) | 5,893) | 6,873) | 6,271) | 5,756) | 4,273) | 3,135) | 4,548) | 1,819) | 2,085) | 1,933) | 2,828) | 3,555) | 2,717) | 3,434) | 3,487) | 3,526) | ||||||
| Current maturities of long-term debt | 3,783) | 5,282) | 3,099) | 1,546) | 72) | 74) | 1,332) | 1,347) | 1,760) | 2,519) | 1,254) | 1,796) | 1,670) | 945) | 937) | 1,730) | 1,315) | 3,099) | 3,207) | ||||||
| Long-term debt, excluding current maturities | 10,386) | 26,228) | 29,010) | 27,141) | 30,092) | 30,167) | 25,744) | 25,479) | 25,934) | 20,865) | 22,183) | 16,562) | 16,683) | 17,600) | 14,670) | 15,123) | 12,236) | 12,491) | 12,636) | ||||||
| Total debt | 16,593) | 33,988) | 36,739) | 34,580) | 37,037) | 36,512) | 32,832) | 31,099) | 30,829) | 27,932) | 25,256) | 20,443) | 20,286) | 21,373) | 19,162) | 19,570) | 16,985) | 19,077) | 19,369) | ||||||
| Total assets | 53,098) | 77,344) | 73,988) | 73,681) | 80,917) | 78,419) | 75,218) | 75,196) | 73,492) | 69,329) | 65,645) | 61,525) | 61,296) | 62,337) | 59,883) | 62,275) | 60,287) | 62,258) | 63,352) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | 0.31 | 0.44 | 0.50 | 0.47 | 0.46 | 0.47 | 0.44 | 0.41 | 0.42 | 0.40 | 0.38 | 0.33 | 0.33 | 0.34 | 0.32 | 0.31 | 0.28 | 0.31 | 0.31 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 0.27 | 0.28 | 0.29 | 0.32 | 0.36 | 0.34 | 0.34 | 0.34 | 0.42 | 0.41 | 0.36 | 0.38 | 0.39 | 0.39 | 0.41 | 0.42 | 0.42 | 0.42 | 0.43 | ||||||
| Caterpillar Inc. | — | 0.44 | 0.45 | 0.44 | 0.44 | 0.45 | 0.45 | 0.44 | 0.44 | 0.45 | 0.45 | 0.43 | 0.43 | 0.44 | 0.44 | 0.45 | 0.45 | 0.46 | 0.46 | ||||||
| Eaton Corp. plc | — | 0.37 | 0.38 | 0.24 | 0.26 | 0.27 | 0.26 | 0.24 | 0.24 | 0.25 | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | 0.25 | 0.26 | 0.28 | 0.27 | ||||||
| GE Aerospace | 0.15 | 0.15 | 0.16 | 0.16 | 0.16 | 0.15 | 0.16 | 0.16 | 0.16 | 0.16 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.17 | 0.17 | 0.18 | 0.18 | ||||||
| Lockheed Martin Corp. | 0.32 | 0.33 | 0.35 | 0.36 | 0.37 | 0.37 | 0.36 | 0.36 | 0.35 | 0.35 | 0.35 | 0.33 | 0.31 | 0.31 | 0.29 | 0.29 | 0.22 | 0.22 | 0.23 | ||||||
| RTX Corp. | 0.21 | 0.21 | 0.22 | 0.22 | 0.23 | 0.25 | 0.25 | 0.25 | 0.26 | 0.26 | 0.27 | 0.27 | 0.22 | 0.22 | 0.21 | 0.20 | 0.21 | 0.20 | 0.20 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 16,593 ÷ 53,098 = 0.31
2 Click competitor name to see calculations.
The solvency profile exhibits three distinct phases: a period of relative stability, a phase of increasing financial leverage, and a final period of significant contraction in both debt and assets.
- Stability Phase (March 2022 – December 2023)
- During this interval, the debt-to-assets ratio remained consistent, fluctuating within a narrow range between 0.28 and 0.34. Total debt stayed primarily around the $19 billion to $21 billion mark, while total assets remained stable between $59 billion and $63 billion, indicating a balanced approach to financing and asset management.
- Leverage Expansion Phase (March 2024 – March 2026)
- A sustained upward trajectory in leverage is observed beginning in the first quarter of 2024. The debt-to-assets ratio climbed steadily from 0.38 to a peak of 0.50 by March 31, 2026. This trend was driven by a substantial increase in total debt, which rose from $25.26 billion to a high of $37.04 billion in September 2025. Although total assets also grew, peaking at $80.92 billion in September 2025, the rate of debt accumulation outpaced asset growth, thereby increasing the company's financial risk profile.
- Contraction and Deleveraging Phase (June 2026 – September 2026)
- A sharp reversal is evident in the final two quarters of the analyzed period. A significant reduction in both total debt and total assets occurred simultaneously. By September 30, 2026, total debt decreased to $16.59 billion and total assets fell to $53.10 billion. This coordinated decline resulted in the debt-to-assets ratio returning to 0.31, effectively resetting the solvency position to levels observed in early 2022.
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Financial Leverage
Honeywell International Inc., financial leverage calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Total assets | 53,098) | 77,344) | 73,988) | 73,681) | 80,917) | 78,419) | 75,218) | 75,196) | 73,492) | 69,329) | 65,645) | 61,525) | 61,296) | 62,337) | 59,883) | 62,275) | 60,287) | 62,258) | 63,352) | ||||||
| Total Honeywell Technologies shareowners’ equity | 22,417) | 18,537) | 13,590) | 13,904) | 16,782) | 16,095) | 17,463) | 18,619) | 17,406) | 16,947) | 16,454) | 15,856) | 17,231) | 17,299) | 16,919) | 16,697) | 17,707) | 17,541) | 18,365) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | 2.37 | 4.17 | 5.44 | 5.30 | 4.82 | 4.87 | 4.31 | 4.04 | 4.22 | 4.09 | 3.99 | 3.88 | 3.56 | 3.60 | 3.54 | 3.73 | 3.40 | 3.55 | 3.45 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 26.08 | 27.19 | 27.52 | 30.85 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | — | 5.29 | 5.12 | 4.62 | 4.54 | 4.84 | 4.70 | 4.50 | 4.45 | 4.86 | 4.75 | 4.49 | 4.24 | 4.68 | 4.61 | 5.16 | 5.19 | 5.16 | 4.82 | ||||||
| Eaton Corp. plc | — | 2.77 | 2.79 | 2.12 | 2.16 | 2.18 | 2.12 | 2.08 | 2.05 | 2.05 | 2.00 | 2.02 | 2.03 | 2.05 | 2.04 | 2.06 | 2.14 | 2.15 | 2.12 | ||||||
| GE Aerospace | 7.26 | 7.24 | 7.11 | 6.97 | 6.82 | 6.55 | 6.45 | 6.37 | 6.71 | 6.62 | 5.49 | 5.96 | 5.47 | 5.23 | 5.20 | 5.16 | 5.75 | 5.35 | 4.92 | ||||||
| Lockheed Martin Corp. | 6.41 | 7.12 | 7.91 | 8.90 | 9.75 | 11.04 | 8.48 | 8.78 | 7.71 | 8.92 | 8.27 | 7.67 | 6.11 | 6.17 | 5.66 | 5.71 | 4.35 | 4.53 | 5.15 | ||||||
| RTX Corp. | 2.55 | 2.62 | 2.57 | 2.62 | 2.61 | 2.68 | 2.68 | 2.71 | 2.70 | 2.73 | 2.65 | 2.71 | 2.33 | 2.24 | 2.22 | 2.19 | 2.25 | 2.26 | 2.20 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2026 Calculation
Financial leverage = Total assets ÷ Total Honeywell Technologies shareowners’ equity
= 53,098 ÷ 22,417 = 2.37
2 Click competitor name to see calculations.
The analyzed period is characterized by a prolonged phase of balance sheet expansion and increasing financial leverage, followed by a sharp deleveraging event in the final quarters of the sequence. Financial leverage exhibited a steady upward trajectory from March 2022 through March 2026, indicating a strategic shift toward higher debt utilization relative to equity to support asset growth.
- Asset Growth and Peak
- Total assets grew from 63.35 billion USD in March 2022 to a peak of 80.92 billion USD in September 2025. This growth reflects a significant increase in the company's resource base over a three-and-a-half-year period.
- Financial Leverage Escalation
- The financial leverage ratio rose from 3.45 in March 2022 to a maximum of 5.44 by March 2026. The most aggressive increase occurred between December 2023 and March 2026, where the ratio climbed from 3.88 to 5.44, suggesting a heightened reliance on external financing or a reduction in the equity base relative to total assets.
- Equity Fluctuations
- Shareowners' equity remained relatively stable between 15.86 billion USD and 18.62 billion USD from March 2022 through December 2024. A decline followed, reaching a low of 13.59 billion USD in March 2026. However, a substantial recovery is observed in the final two quarters, with equity increasing to 22.42 billion USD by September 2026.
- Deleveraging and Balance Sheet Contraction
- A pivot in the financial structure is evident starting in June 2026. Total assets contracted sharply from 77.34 billion USD in June 2026 to 53.10 billion USD in September 2026. Concurrent with this asset reduction and the increase in equity, the financial leverage ratio dropped precipitously to 2.37, marking the lowest leverage level of the entire period.
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Interest Coverage
Honeywell International Inc., interest coverage calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income attributable to Honeywell Technologies | 664) | 5,682) | 821) | (115) | 1,825) | 1,570) | 1,449) | 1,285) | 1,413) | 1,544) | 1,463) | 1,263) | 1,514) | 1,487) | 1,394) | 1,019) | 1,552) | 1,261) | 1,134) | ||||||
| Add: Net income attributable to noncontrolling interest | 12) | 4) | (26) | (8) | 34) | (1) | 18) | 5) | 2) | 16) | 12) | (15) | 1) | 14) | 14) | 2) | (3) | 2) | —) | ||||||
| Less: Net income from discontinued operations | (103) | —) | —) | (17) | (36) | 186) | 171) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Add: Income tax expense | 60) | 1,578) | 91) | 255) | 140) | 244) | 369) | 254) | 409) | 414) | 396) | 258) | 452) | 403) | 374) | 168) | 432) | 441) | 371) | ||||||
| Add: Interest and other financial charges | 143) | 363) | 356) | 377) | 353) | 329) | 285) | 291) | 297) | 250) | 220) | 202) | 206) | 187) | 170) | 144) | 98) | 87) | 85) | ||||||
| Earnings before interest and tax (EBIT) | 982) | 7,627) | 1,242) | 526) | 2,388) | 1,956) | 1,950) | 1,835) | 2,121) | 2,224) | 2,091) | 1,708) | 2,173) | 2,091) | 1,952) | 1,333) | 2,079) | 1,791) | 1,590) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Interest coverage1 | 8.38 | 8.13 | 4.32 | 5.07 | 6.46 | 6.54 | 7.24 | 7.82 | 8.40 | 9.33 | 9.89 | 10.36 | 10.68 | 12.45 | 14.34 | 16.41 | 20.95 | 20.60 | 21.35 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 4.21 | 2.08 | 1.96 | 1.95 | -2.41 | -2.72 | -3.10 | -3.48 | -2.16 | -0.23 | 0.21 | 0.18 | -0.06 | -0.85 | -0.53 | -0.98 | -2.54 | -1.40 | -1.31 | ||||||
| Caterpillar Inc. | — | 27.68 | 24.64 | 24.21 | 25.46 | 25.81 | 26.67 | 27.21 | 26.28 | 26.88 | 27.68 | 26.66 | 24.81 | 23.80 | 21.33 | 20.80 | 22.05 | 20.08 | 19.10 | ||||||
| Eaton Corp. plc | — | 11.86 | 16.48 | 21.46 | 23.55 | 28.05 | 36.65 | 36.12 | 40.37 | 37.97 | 32.04 | 26.34 | 22.25 | 19.68 | 19.85 | 21.22 | 21.33 | 24.31 | 22.57 | ||||||
| GE Aerospace | 12.51 | 12.27 | 12.53 | 12.86 | 12.56 | 11.46 | 9.44 | 8.73 | 7.93 | 6.25 | 6.11 | 10.12 | 9.41 | 8.49 | 6.73 | 1.88 | -1.66 | -1.16 | -1.49 | ||||||
| Lockheed Martin Corp. | 8.03 | 7.68 | 6.06 | 6.30 | 5.50 | 5.60 | 7.12 | 7.00 | 8.65 | 8.83 | 9.19 | 9.84 | 10.42 | 11.74 | 10.58 | 11.72 | 13.31 | 10.88 | 14.12 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2026 Calculation
Interest coverage
= (EBITQ3 2026
+ EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025)
÷ (Interest expenseQ3 2026
+ Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025)
= (982 + 7,627 + 1,242 + 526)
÷ (143 + 363 + 356 + 377)
= 8.38
2 Click competitor name to see calculations.
The interest coverage ratio exhibits a sustained downward trajectory over the majority of the analyzed period, indicating a reduction in the margin of safety available to meet interest obligations. From a peak of 21.35 in March 2022, the ratio declined consistently to a low of 4.32 by March 2026, before experiencing a moderate recovery in the final two quarters of the sequence.
- Interest Expense Trends
- A consistent and significant increase in interest and other financial charges is observed. Expenses rose from 85 million USD in March 2022 to a peak of 377 million USD in December 2025. This steady climb represents a primary driver in the erosion of the interest coverage ratio, as the cost of debt servicing increased more rapidly than the growth of operating earnings for several consecutive years.
- Earnings Before Interest and Tax (EBIT) Performance
- EBIT remained relatively stable between 1.3 billion USD and 2.3 billion USD from March 2022 through June 2025. However, extreme volatility is noted in 2026, characterized by a sharp decline to 526 million USD in December 2025, followed by an anomalous spike to 7.6 billion USD in June 2026. The period concludes with a return to lower levels at 982 million USD in September 2026.
- Solvency Ratio Compression
- The compression of the interest coverage ratio occurred in three distinct phases. First, a gradual decline from 21.35 to 10.36 occurred between March 2022 and December 2023. Second, a further contraction took place from January 2024 to March 2026, where the ratio fell to 4.32, signaling increased financial risk. Third, a partial stabilization occurred in the final two quarters of 2026, ending at 8.38, coinciding with a sharp reduction in interest charges to 143 million USD in September 2026.
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