Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Honeywell International Inc. pages available for free this week:
- Balance Sheet: Assets
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Honeywell International Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Long-term Activity Ratios (Summary)
Honeywell International Inc., long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of long-term investment activity ratios reveals varying trends across the observed period. Generally, the ratios demonstrate an increasing efficiency in asset utilization towards the end of the period, though some fluctuations are present.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio generally increased from 6.18 in 2021 to 8.09 in 2025. A slight dip occurred in 2024, falling to 6.22, before rebounding significantly. This suggests improving efficiency in generating revenue from fixed assets over the long term, with a temporary slowdown in 2024.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio also exhibited an upward trend, moving from 5.28 in 2021 to 6.80 in 2025. The pattern of a slight decrease in 2024 (to 5.33) followed by a recovery is also observed. Including operating leases and right-of-use assets results in a lower turnover ratio compared to the standard calculation, indicating a greater proportion of assets tied up in these arrangements.
- Total Asset Turnover
- The total asset turnover ratio showed an initial increase from 0.53 in 2021 to 0.60 in 2023, then decreased to 0.51 in both 2024 and 2025. This indicates that while the company initially became more efficient at generating sales from its total asset base, this efficiency plateaued and slightly declined in the latter years of the period.
- Equity Turnover
- The equity turnover ratio demonstrated a consistent upward trend, increasing from 1.85 in 2021 to 2.69 in 2025. This suggests that the company is becoming increasingly effective at generating revenue from shareholder equity. The increase is relatively steady, indicating a sustained improvement in the relationship between revenue and equity investment.
In summary, the observed ratios suggest a general trend of improving asset utilization, particularly concerning fixed assets and equity, although the total asset turnover experienced a recent stabilization. The inclusion of operating lease obligations impacts the fixed asset turnover calculation, resulting in a lower ratio. The equity turnover ratio consistently improved throughout the period.
Net Fixed Asset Turnover
Honeywell International Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits a generally positive trend over the observed period, though with some fluctuation. Initial values indicate an increase from 6.18 in 2021 to 6.48 in 2022, which remained consistent through 2023. A slight decrease to 6.22 was noted in 2024, followed by a substantial increase to 8.09 in 2025.
- Net Sales
- Net sales demonstrate a generally increasing pattern from $34,392 million in 2021 to $38,498 million in 2024. A decrease to $37,442 million is observed in 2025. This suggests a period of growth followed by a slight contraction in the most recent year.
- Property, Plant and Equipment, Net
- The value of net property, plant, and equipment initially decreased from $5,562 million in 2021 to $5,471 million in 2022. A subsequent increase to $6,194 million occurred by 2024, before a significant decrease to $4,629 million in 2025. This indicates periods of investment in fixed assets followed by potential disposals or depreciation exceeding new investments.
- Net Fixed Asset Turnover
- The ratio’s increase in 2025 is particularly noteworthy. This substantial rise, from 6.22 to 8.09, suggests a significantly improved efficiency in utilizing fixed assets to generate sales. This improvement coincides with a decrease in the net value of property, plant, and equipment, indicating that the company is generating more sales with a smaller fixed asset base. The earlier stability from 2022 to 2023, coupled with the slight dip in 2024, suggests a period of consistent, but not rapidly changing, asset utilization before the more pronounced shift in 2025.
The interplay between net sales and net property, plant, and equipment appears to be the primary driver of the net fixed asset turnover ratio’s fluctuations. The substantial change in 2025 warrants further investigation to determine the underlying causes, such as significant asset disposals, improved operational efficiency, or changes in sales mix.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Honeywell International Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease right-of-use (ROU) assets (included in Other assets) | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, alongside its component figures of net sales and net fixed assets, exhibits fluctuating performance over the five-year period. Net sales generally increased from 2021 to 2024, before experiencing a slight decrease in 2025. Concurrently, net fixed assets demonstrated initial decline, followed by growth, and then a substantial reduction.
- Net Sales Trend
- Net sales increased from US$34,392 million in 2021 to US$38,498 million in 2024, representing a cumulative growth of approximately 12.2%. However, sales decreased to US$37,442 million in 2025, a reduction of 2.9% from the prior year. This suggests a potential stabilization or slight contraction in revenue generation towards the end of the analyzed period.
- Net Fixed Asset Trend
- Net fixed assets decreased from US$6,509 million in 2021 to US$6,352 million in 2022. A subsequent increase was observed, reaching US$7,219 million in 2024. A significant decrease then occurred in 2025, with net fixed assets falling to US$5,505 million. This substantial reduction could be attributed to asset disposals, depreciation exceeding new investments, or reclassification of assets.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio initially increased from 5.28 in 2021 to 5.58 in 2022, indicating improved efficiency in generating sales from fixed assets. The ratio remained relatively stable at 5.50 in 2023 and decreased slightly to 5.33 in 2024. A notable increase to 6.80 was observed in 2025. This final increase is largely driven by the decrease in net fixed assets, suggesting a more efficient utilization of the remaining asset base to generate sales, despite the slight decline in overall sales.
The interplay between sales and fixed asset levels results in a fluctuating turnover ratio. The substantial decrease in net fixed assets in 2025 warrants further investigation to understand the underlying reasons and potential implications for future operational capacity and growth.
Total Asset Turnover
Honeywell International Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Total Asset Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibited a generally increasing trend from 2021 to 2023, followed by a decline in the subsequent two years. This indicates fluctuations in how efficiently assets are being utilized to generate sales revenue.
- Total Asset Turnover Trend
- In 2021, the total asset turnover ratio was 0.53. This increased to 0.57 in 2022, and further to 0.60 in 2023, representing improved efficiency in asset utilization. However, the ratio decreased to 0.51 in 2024 and remained at the same level in 2025. This suggests a potential weakening in the relationship between asset levels and sales generation in the latter period.
Net sales demonstrated a consistent increase from 2021 to 2023, growing from US$34,392 million to US$36,662 million. While sales experienced a further increase in 2024 to US$38,498 million, they decreased to US$37,442 million in 2025. This sales pattern partially explains the observed fluctuations in the total asset turnover ratio.
- Asset Level Impact
- Total assets decreased from US$64,470 million in 2021 to US$61,525 million in 2023. However, a significant increase was observed in 2024, reaching US$75,196 million, before decreasing slightly to US$73,681 million in 2025. The substantial asset increase in 2024, coupled with a subsequent sales decrease in 2025, likely contributed to the decline in the total asset turnover ratio during those years.
The combined effect of sales and asset level changes suggests that while the company initially improved its asset utilization, the substantial increase in asset base in 2024, without a corresponding proportional increase in sales sustained into 2025, resulted in a reduced efficiency in generating sales from its assets.
Equity Turnover
Honeywell International Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Total Honeywell shareowners’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Capital Goods | ||||||
| Equity Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Equity turnover = Net sales ÷ Total Honeywell shareowners’ equity
= ÷ =
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates a generally increasing trend, with some fluctuation. Net sales exhibited consistent growth from 2021 to 2023, followed by a slight decrease in 2024 and a subsequent increase in 2025. Total Honeywell shareowners’ equity experienced a decrease from 2021 to 2023, a notable increase in 2024, and a significant decrease in 2025. These movements in the underlying components contribute to the observed pattern in equity turnover.
- Equity Turnover Trend
- The equity turnover ratio increased from 1.85 in 2021 to 2.12 in 2022, and further to 2.31 in 2023. This indicates a growing efficiency in generating sales relative to the amount of equity invested. A slight decrease to 2.07 was observed in 2024, potentially linked to the concurrent decrease in net sales. However, the ratio experienced a substantial increase to 2.69 in 2025, despite a decrease in total equity, suggesting a significant improvement in sales generation efficiency relative to equity.
- Net Sales Performance
- Net sales increased steadily from US$34,392 million in 2021 to US$36,662 million in 2023, representing consistent revenue growth. The figure dipped to US$38,498 million in 2024 before rising to US$37,442 million in 2025. This suggests a period of strong growth followed by a minor contraction and subsequent recovery.
- Shareowners’ Equity Fluctuations
- Total Honeywell shareowners’ equity decreased from US$18,569 million in 2021 to US$15,856 million in 2023. A considerable increase to US$18,619 million occurred in 2024, likely due to factors such as retained earnings or share issuance. However, equity then decreased significantly to US$13,904 million in 2025, potentially resulting from share repurchases, dividend payouts, or other capital adjustments.
The interplay between net sales and shareowners’ equity is evident in the equity turnover ratio. The increase in the ratio from 2021 to 2023 aligns with growing sales and decreasing equity. The 2025 increase is particularly noteworthy, as it occurred despite a decrease in equity, indicating a substantial improvement in the efficiency with which equity is used to generate sales.