Microsoft Excel LibreOffice Calc

Profitability Analysis

Difficulty: Beginner


Ratios (Summary)

Honeywell International Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Return on Sales
Gross profit margin 30.52% 31.97% 30.92% 30.67% 28.16%
Operating profit margin 16.04% 17.64% 17.00% 17.70% 14.47%
Net profit margin 16.18% 4.08% 12.24% 12.36% 10.52%
Return on Investment
Return on equity (ROE) 37.21% 9.58% 24.83% 26.08% 24.01%
Return on assets (ROA) 11.71% 2.79% 8.88% 9.67% 9.33%

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
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Honeywell International Inc.’s gross profit margin improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Honeywell International Inc.’s operating profit margin improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Honeywell International Inc.’s net profit margin deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Honeywell International Inc.’s ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
ROA A profitability ratio calculated as net income divided by total assets. Honeywell International Inc.’s ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Gross Profit Margin

Honeywell International Inc., gross profit margin 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)
Gross profit 12,756  12,959  12,152  11,834  11,349 
Net sales 41,802  40,534  39,302  38,581  40,306 
Ratio
Gross profit margin1 30.52% 31.97% 30.92% 30.67% 28.16%
Benchmarks
Gross Profit Margin, Competitors
3M Co. 49.09% 49.46% 50.05% 49.19% 48.31%
Danaher Corp. 55.61% 55.29% 52.34% 52.44%
General Electric Co. 18.78% 20.75% 21.85% 23.84%

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 Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 12,756 ÷ 41,802 = 30.52%

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Honeywell International Inc.’s gross profit margin improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Operating Profit Margin

Honeywell International Inc., operating profit margin 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)
Operating income 6,705  7,151  6,683  6,828  5,831 
Net sales 41,802  40,534  39,302  38,581  40,306 
Ratio
Operating profit margin1 16.04% 17.64% 17.00% 17.70% 14.47%
Benchmarks
Operating Profit Margin, Competitors
3M Co. 22.00% 24.70% 23.99% 22.94% 22.42%
Danaher Corp. 16.48% 16.29% 16.87% 17.23%
General Electric Co. 9.06% 12.53% 13.83% 30.42%
Operating Profit Margin, Sector
General Industrials 13.87% 15.50% 16.33% 24.58%
Operating Profit Margin, Industry
Industrials 13.70% 12.78% 13.66% 16.06%

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 Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 6,705 ÷ 41,802 = 16.04%

Ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Honeywell International Inc.’s operating profit margin improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Net Profit Margin

Honeywell International Inc., net profit margin 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 income attributable to Honeywell 6,765  1,655  4,809  4,768  4,239 
Net sales 41,802  40,534  39,302  38,581  40,306 
Ratio
Net profit margin1 16.18% 4.08% 12.24% 12.36% 10.52%
Benchmarks
Net Profit Margin, Competitors
3M Co. 16.33% 15.35% 16.77% 15.96% 15.57%
Danaher Corp. 13.60% 15.13% 16.33% 13.05%
General Electric Co. -5.11% 8.00% -5.79% 14.27%
Net Profit Margin, Sector
General Industrials 1.58% 10.80% 3.50% 13.59%
Net Profit Margin, Industry
Industrials 7.55% 8.82% 7.36% 9.90%

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 profit margin = 100 × Net income attributable to Honeywell ÷ Net sales
= 100 × 6,765 ÷ 41,802 = 16.18%

Ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Honeywell International Inc.’s net profit margin deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Return on Equity (ROE)

Honeywell International Inc., ROE 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 income attributable to Honeywell 6,765  1,655  4,809  4,768  4,239 
Total Honeywell shareowners’ equity 18,180  17,276  19,369  18,283  17,657 
Ratio
ROE1 37.21% 9.58% 24.83% 26.08% 24.01%
Benchmarks
ROE, Competitors
3M Co. 54.60% 42.01% 49.04% 41.28% 37.81%
Danaher Corp. 9.45% 11.10% 14.17% 11.11%
General Electric Co. -9.00% 11.65% -6.23% 11.89%
ROE, Sector
General Industrials 2.69% 16.53% 4.50% 14.82%
ROE, Industry
Industrials 21.24% 24.02% 17.80% 21.32%

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 ROE = 100 × Net income attributable to Honeywell ÷ Total Honeywell shareowners’ equity
= 100 × 6,765 ÷ 18,180 = 37.21%

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Honeywell International Inc.’s ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Return on Assets (ROA)

Honeywell International Inc., ROA 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 income attributable to Honeywell 6,765  1,655  4,809  4,768  4,239 
Total assets 57,773  59,387  54,146  49,316  45,451 
Ratio
ROA1 11.71% 2.79% 8.88% 9.67% 9.33%
Benchmarks
ROA, Competitors
3M Co. 14.65% 12.79% 15.35% 14.77% 15.85%
Danaher Corp. 5.34% 5.64% 6.96% 7.02%
General Electric Co. -1.53% 2.42% -1.24% 2.35%
ROA, Sector
General Industrials 0.62% 4.27% 1.10% 3.55%
ROA, Industry
Industrials 4.77% 5.51% 4.25% 5.29%

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 ROA = 100 × Net income attributable to Honeywell ÷ Total assets
= 100 × 6,765 ÷ 57,773 = 11.71%

Ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Honeywell International Inc.’s ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.