Microsoft Excel LibreOffice Calc

Honeywell International Inc. (HON)

Long-term (Investment) Activity Analysis

Difficulty: Beginner

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Ratios (Summary)

Honeywell International Inc., long-term (investment) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net fixed asset turnover 7.89 6.84 6.78 6.66 7.49
Total asset turnover 0.72 0.68 0.73 0.78 0.89
Equity turnover 2.30 2.35 2.03 2.11 2.28

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).

Ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Honeywell International Inc.’s net fixed asset turnover improved from 2016 to 2017 and from 2017 to 2018.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Honeywell International Inc.’s total asset turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Honeywell International Inc.’s equity turnover improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Net Fixed Asset Turnover

Honeywell International Inc., net fixed asset turnover 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 (USD $ in millions)
Net sales 41,802  40,534  39,302  38,581  40,306 
Property, plant and equipment, net 5,296  5,926  5,793  5,789  5,383 
Ratio
Net fixed asset turnover1 7.89 6.84 6.78 6.66 7.49
Benchmarks
Net Fixed Asset Turnover, Competitors
3M Co. 3.75 3.57 3.54 3.56 3.75
Danaher Corp. – 7.47 7.17 7.28 9.04
General Electric Co. – 2.10 2.19 1.96 1.61
Net Fixed Asset Turnover, Sector
General Industrials – 2.86 2.93 2.74 2.41
Net Fixed Asset Turnover, Industry
Industrials – 2.93 2.91 2.97 2.99

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).

2018 Calculations

1 Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 41,802 ÷ 5,296 = 7.89

Ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Honeywell International Inc.’s net fixed asset turnover improved from 2016 to 2017 and from 2017 to 2018.

Total Asset Turnover

Honeywell International Inc., total asset turnover 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 (USD $ in millions)
Net sales 41,802  40,534  39,302  38,581  40,306 
Total assets 57,773  59,387  54,146  49,316  45,451 
Ratio
Total asset turnover1 0.72 0.68 0.73 0.78 0.89
Benchmarks
Total Asset Turnover, Competitors
3M Co. 0.90 0.83 0.92 0.93 1.02
Danaher Corp. – 0.39 0.37 0.43 0.54
General Electric Co. – 0.30 0.30 0.21 0.16
Total Asset Turnover, Sector
General Industrials – 0.39 0.40 0.31 0.26
Total Asset Turnover, Industry
Industrials – 0.63 0.62 0.58 0.53

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).

2018 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 41,802 ÷ 57,773 = 0.72

Ratio Description The company
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Honeywell International Inc.’s total asset turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Equity Turnover

Honeywell International Inc., equity turnover 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 (USD $ in millions)
Net sales 41,802  40,534  39,302  38,581  40,306 
Total Honeywell shareowners’ equity 18,180  17,276  19,369  18,283  17,657 
Ratio
Equity turnover1 2.30 2.35 2.03 2.11 2.28
Benchmarks
Equity Turnover, Competitors
3M Co. 3.34 2.74 2.92 2.59 2.43
Danaher Corp. – 0.70 0.73 0.87 0.85
General Electric Co. – 1.76 1.46 1.08 0.83
Equity Turnover, Sector
General Industrials – 1.71 1.53 1.28 1.09
Equity Turnover, Industry
Industrials – 2.81 2.72 2.42 2.15

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).

2018 Calculations

1 Equity turnover = Net sales ÷ Total Honeywell shareowners’ equity
= 41,802 ÷ 18,180 = 2.30

Ratio Description The company
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Honeywell International Inc.’s equity turnover improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.