Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Honeywell International Inc. (NYSE:HON)

Analysis of Profitability Ratios

Beginner level

Profitability Ratios (Summary)

Honeywell International Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Return on Sales
Gross profit margin 32.07% 33.70% 30.52% 31.97% 30.92%
Operating profit margin 17.45% 18.66% 16.04% 17.64% 17.00%
Net profit margin 14.64% 16.73% 16.18% 4.08% 12.24%
Return on Investment
Return on equity (ROE) 27.23% 33.22% 37.21% 9.58% 24.83%
Return on assets (ROA) 7.40% 10.47% 11.71% 2.79% 8.88%

Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10).

Profitability 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 ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Honeywell International Inc.’s operating profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Honeywell International Inc.’s net profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Honeywell International Inc.’s ROE deteriorated from 2018 to 2019 and from 2019 to 2020.
ROA A profitability ratio calculated as net income divided by total assets. Honeywell International Inc.’s ROA deteriorated from 2018 to 2019 and from 2019 to 2020.

Gross Profit Margin

Honeywell International Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Gross profit 10,468  12,370  12,756  12,959  12,152 
Net sales 32,637  36,709  41,802  40,534  39,302 
Profitability Ratio
Gross profit margin1 32.07% 33.70% 30.52% 31.97% 30.92%
Benchmarks
Gross Profit Margin, Competitors2
3M Co. 48.41% 46.68% 49.09% 49.46% 50.05%
General Electric Co. 17.26% 23.52% 18.38% 18.78% 20.75%

Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10).

1 2020 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 10,468 ÷ 32,637 = 32.07%

2 Click competitor name to see calculations.

Profitability 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 ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Operating Profit Margin

Honeywell International Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Operating income 5,696  6,851  6,705  7,151  6,683 
Net sales 32,637  36,709  41,802  40,534  39,302 
Profitability Ratio
Operating profit margin1 17.45% 18.66% 16.04% 17.64% 17.00%
Benchmarks
Operating Profit Margin, Competitors2
3M Co. 22.25% 19.21% 22.00% 24.70% 23.99%
General Electric Co. 5.49% 12.84% 9.54% 9.06% 12.53%
Operating Profit Margin, Sector
General Industrials 12.24% 15.52% 13.15% 13.61% 15.42%
Operating Profit Margin, Industry
Industrials 9.04% 13.31% 14.22% 13.95% 12.91%

Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10).

1 2020 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 5,696 ÷ 32,637 = 17.45%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Honeywell International Inc.’s operating profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Net Profit Margin

Honeywell International Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell 4,779  6,143  6,765  1,655  4,809 
Net sales 32,637  36,709  41,802  40,534  39,302 
Profitability Ratio
Net profit margin1 14.64% 16.73% 16.18% 4.08% 12.24%
Benchmarks
Net Profit Margin, Competitors2
3M Co. 16.73% 14.22% 16.33% 15.35% 16.77%
General Electric Co. 7.81% -5.69% -19.69% -5.11% 8.00%
Net Profit Margin, Sector
General Industrials 11.51% 3.67% -5.44% 0.39% 10.39%
Net Profit Margin, Industry
Industrials 5.70% 7.35% 6.75% 8.10% 8.70%

Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10).

1 2020 Calculation
Net profit margin = 100 × Net income attributable to Honeywell ÷ Net sales
= 100 × 4,779 ÷ 32,637 = 14.64%

2 Click competitor name to see calculations.

Profitability 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 ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Return on Equity (ROE)

Honeywell International Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell 4,779  6,143  6,765  1,655  4,809 
Total Honeywell shareowners’ equity 17,549  18,494  18,180  17,276  19,369 
Profitability Ratio
ROE1 27.23% 33.22% 37.21% 9.58% 24.83%
Benchmarks
ROE, Competitors2
3M Co. 41.84% 45.41% 54.60% 42.01% 49.04%
General Electric Co. 16.04% -17.58% -72.16% -9.00% 11.65%
ROE, Sector
General Industrials 24.05% 10.08% -17.37% 0.78% 17.72%
ROE, Industry
Industrials 15.63% 25.35% 23.94% 23.97% 25.01%

Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10).

1 2020 Calculation
ROE = 100 × Net income attributable to Honeywell ÷ Total Honeywell shareowners’ equity
= 100 × 4,779 ÷ 17,549 = 27.23%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Honeywell International Inc.’s ROE deteriorated from 2018 to 2019 and from 2019 to 2020.

Return on Assets (ROA)

Honeywell International Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell 4,779  6,143  6,765  1,655  4,809 
Total assets 64,586  58,679  57,773  59,387  54,146 
Profitability Ratio
ROA1 7.40% 10.47% 11.71% 2.79% 8.88%
Benchmarks
ROA, Competitors2
3M Co. 11.37% 10.23% 14.65% 12.79% 15.35%
General Electric Co. 2.25% -1.87% -7.23% -1.53% 2.42%
ROA, Sector
General Industrials 4.34% 1.55% -2.54% 0.15% 4.13%
ROA, Industry
Industrials 3.11% 4.60% 4.49% 5.01% 5.36%

Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10).

1 2020 Calculation
ROA = 100 × Net income attributable to Honeywell ÷ Total assets
= 100 × 4,779 ÷ 64,586 = 7.40%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Honeywell International Inc.’s ROA deteriorated from 2018 to 2019 and from 2019 to 2020.