Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Turnover Ratios
Average No. Days
Honeywell International Inc., short-term (operating) activity 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 operational activity ratios exhibit a distinct two-phase trend. From March 2022 through June 2025, there is a gradual deterioration in efficiency characterized by slowing inventory turnover and an expanding cash conversion cycle. This period of deceleration is followed by a sharp and significant improvement in all primary activity metrics during the final quarters, culminating in a peak efficiency level in September 2026.
- Inventory Management Efficiency
- Inventory turnover experienced a steady decline from 4.20 in March 2022 to a low of 3.34 in June 2025. Correspondingly, the average inventory processing period lengthened from 87 days to 109 days during this timeframe, indicating a slower movement of goods. However, a dramatic reversal occurred by September 2026, where inventory turnover spiked to 10.18 and the processing period dropped sharply to 36 days, representing a substantial acceleration in inventory throughput.
- Receivables and Payables Dynamics
- Receivables turnover remained relatively stable between 4.23 and 4.94 for most of the observed period, with the average collection period fluctuating between 74 and 86 days. A significant improvement is noted in September 2026, with turnover rising to 6.61 and the collection period falling to 55 days. Payables turnover followed a similar stability pattern until September 2026, when it rose to 5.83, resulting in a reduced payment period of 63 days compared to the previous average of approximately 100 days.
- Operating and Cash Conversion Cycles
- The operating cycle showed a gradual upward trend, peaking at 195 days in June 2025, which suggests an increase in the time required to convert raw materials into sales. This trend mirrors the movement of the cash conversion cycle, which expanded from 63 days in March 2022 to 84 days in June 2025. In the final reported period of September 2026, both metrics contracted abruptly, with the operating cycle dropping to 91 days and the cash conversion cycle reaching a period-low of 28 days.
- Working Capital Utilization
- Working capital turnover demonstrated high volatility throughout the sequence, with values ranging from a low of 3.37 in March 2024 to a high of 8.84 in June 2022. The lack of a linear trend in this ratio suggests fluctuating levels of working capital relative to revenue generation, contrasting with the more consistent trends observed in the specific inventory and receivable turnover ratios.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Inventory Turnover
Honeywell International Inc., inventory turnover 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) | |||||||||||||||||||||||||
| Cost of products and services sold | 2,976) | 6,066) | 5,604) | 6,288) | 6,204) | 5,658) | 5,463) | 6,418) | 5,979) | 5,856) | 5,583) | 6,201) | 5,670) | 5,626) | 5,498) | 5,769) | 5,594) | 5,660) | 5,324) | ||||||
| Inventories | 2,056) | 6,401) | 6,369) | 6,162) | 7,118) | 7,013) | 6,611) | 6,442) | 6,338) | 6,324) | 6,318) | 6,178) | 6,000) | 5,890) | 5,776) | 5,538) | 5,501) | 5,576) | 5,472) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Inventory turnover1 | 10.18 | 3.77 | 3.73 | 3.83 | 3.34 | 3.35 | 3.59 | 3.70 | 3.73 | 3.69 | 3.65 | 3.72 | 3.76 | 3.82 | 3.90 | 4.04 | 4.09 | 4.06 | 4.20 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 0.95 | 1.01 | 1.01 | 1.01 | 0.97 | 0.86 | 0.80 | 0.78 | 0.85 | 0.78 | 0.82 | 0.88 | 0.87 | 0.88 | 0.83 | 0.81 | 0.78 | 0.74 | 0.74 | ||||||
| Caterpillar Inc. | — | 2.38 | 2.40 | 2.47 | 2.20 | 2.16 | 2.21 | 2.39 | 2.36 | 2.42 | 2.50 | 2.58 | 2.47 | 2.42 | 2.38 | 2.54 | 2.36 | 2.40 | 2.46 | ||||||
| Eaton Corp. plc | 3.50 | 3.55 | 3.50 | 3.63 | 3.57 | 3.51 | 3.55 | 3.64 | 3.66 | 3.81 | 3.85 | 3.95 | 3.93 | 3.93 | 3.94 | 4.04 | 3.95 | 3.87 | 4.03 | ||||||
| GE Aerospace | 2.67 | 2.63 | 2.50 | 2.44 | 2.35 | 2.29 | 2.34 | 2.49 | 3.29 | 4.08 | 2.58 | 3.05 | 3.02 | 3.15 | 3.32 | 3.19 | 3.10 | 3.04 | 3.25 | ||||||
| Lockheed Martin Corp. | 17.52 | 15.40 | 15.93 | 19.13 | 17.97 | 17.84 | 17.94 | 18.46 | 19.41 | 20.21 | 18.67 | 18.87 | 17.88 | 16.82 | 16.63 | 18.68 | 18.09 | 16.20 | 18.12 | ||||||
| RTX Corp. | 5.07 | 5.17 | 5.09 | 5.30 | 4.97 | 4.77 | 4.83 | 5.12 | 4.74 | 4.64 | 4.76 | 4.83 | 4.60 | 4.68 | 4.81 | 5.03 | 5.03 | 5.14 | 5.33 | ||||||
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
Inventory turnover
= (Cost of products and services soldQ3 2026
+ Cost of products and services soldQ2 2026
+ Cost of products and services soldQ1 2026
+ Cost of products and services soldQ4 2025)
÷ Inventories
= (2,976 + 6,066 + 5,604 + 6,288)
÷ 2,056 = 10.18
2 Click competitor name to see calculations.
An analysis of short-term operating activity reveals a prolonged period of declining inventory efficiency from early 2022 through late 2025, followed by a period of correction and a significant anomaly in the final recorded quarter.
- Inventory Levels
- A steady upward trend in inventory values was observed from March 2022, when inventories stood at 5,472 million USD, peaking at 7,118 million USD in September 2025. This growth phase was followed by a sharp reduction to 6,162 million USD in December 2025. A precipitous decline is noted in the final period ending September 2026, where inventory levels dropped to 2,056 million USD.
- Cost of Products and Services Sold
- Quarterly costs remained relatively stable for the majority of the period, generally fluctuating between 5,300 million USD and 6,400 million USD. The costs peaked at 6,418 million USD in December 2023 and remained consistently above 5,400 million USD until September 2026, when a substantial decrease to 2,976 million USD was recorded.
- Inventory Turnover Ratio
- The inventory turnover ratio exhibited a consistent downward trajectory between March 2022 and September 2025, decreasing from 4.20 to a low of 3.34. This trend indicates a slowing of inventory movement relative to the cost of goods sold. A recovery is evident starting in December 2025, with the ratio returning to a range between 3.73 and 3.83 through June 2026. The final observation in September 2026 shows an atypical spike to 10.18, which is a direct mathematical result of the drastic reduction in held inventories during that period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Receivables Turnover
Honeywell International Inc., receivables turnover 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 sales | 4,994) | 9,719) | 9,143) | 9,758) | 9,437) | 9,322) | 8,925) | 10,088) | 9,728) | 9,577) | 9,105) | 9,440) | 9,212) | 9,146) | 8,864) | 9,186) | 8,951) | 8,953) | 8,376) | ||||||
| Accounts receivable, less allowances | 5,086) | 8,337) | 8,062) | 7,621) | 8,923) | 8,823) | 8,251) | 7,819) | 7,884) | 7,759) | 7,476) | 7,530) | 7,833) | 7,994) | 7,862) | 7,440) | 7,363) | 7,738) | 7,119) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Receivables turnover1 | 6.61 | 4.56 | 4.67 | 4.91 | 4.23 | 4.31 | 4.64 | 4.92 | 4.80 | 4.81 | 4.94 | 4.87 | 4.65 | 4.52 | 4.57 | 4.77 | 4.74 | 4.45 | 4.82 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 23.33 | 26.74 | 26.45 | 30.63 | 24.37 | 23.61 | 21.67 | 25.28 | 25.33 | 23.31 | 25.83 | 29.37 | 24.99 | 24.99 | 24.65 | 26.46 | 22.98 | 20.27 | 25.37 | ||||||
| Caterpillar Inc. | — | 5.38 | 5.86 | 5.86 | 6.02 | 6.14 | 6.56 | 6.61 | 6.85 | 6.69 | 6.86 | 6.86 | 6.95 | 6.56 | 6.37 | 6.39 | 6.59 | 6.10 | 5.46 | ||||||
| Eaton Corp. plc | 4.47 | 4.50 | 4.48 | 5.10 | 4.79 | 4.74 | 4.97 | 5.39 | 5.04 | 4.97 | 5.06 | 5.18 | 5.07 | 5.01 | 5.05 | 5.09 | 5.28 | 5.15 | 5.39 | ||||||
| GE Aerospace | 3.52 | 3.84 | 3.60 | 3.59 | 3.78 | 3.61 | 3.73 | 3.77 | 4.90 | 6.13 | 3.90 | 4.17 | 4.61 | 4.67 | 5.00 | 4.09 | 4.19 | 4.39 | 4.43 | ||||||
| Lockheed Martin Corp. | 25.55 | 22.95 | 32.35 | 19.24 | 19.08 | 21.73 | 35.48 | 30.22 | 33.30 | 24.26 | 30.86 | 31.69 | 28.14 | 19.67 | 25.61 | 26.34 | 26.06 | 18.87 | 26.02 | ||||||
| RTX Corp. | 6.54 | 6.71 | 6.98 | 6.03 | 6.70 | 6.75 | 7.15 | 7.36 | 7.83 | 7.06 | 6.91 | 6.36 | 6.67 | 7.13 | 6.81 | 7.36 | 7.15 | 6.28 | 7.15 | ||||||
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
Receivables turnover
= (Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025)
÷ Accounts receivable, less allowances
= (4,994 + 9,719 + 9,143 + 9,758)
÷ 5,086 = 6.61
2 Click competitor name to see calculations.
The analysis of the receivables turnover ratio indicates a period of relative stability followed by moderate volatility and a significant spike in efficiency toward the end of the observed period. The ratio generally fluctuates between 4.23 and 6.61, reflecting the company's efficiency in converting its accounts receivable into cash.
- Stability and Baseline Performance (2022–2024)
- From March 31, 2022, through December 31, 2024, the receivables turnover ratio remained consistently within a tight range of 4.45 to 4.94. During this interval, net sales grew from 8,376 million to 10,088 million, while accounts receivable were managed effectively to keep pace with this growth. This suggests a disciplined credit policy and consistent collection cycles during this three-year window.
- Efficiency Decline in 2025
- A downward trend in turnover efficiency is observable throughout much of 2025. The ratio declined from 4.64 in March 2025 to a period low of 4.23 by September 30, 2025. This decline coincided with a peak in accounts receivable, which reached 8,923 million in the same quarter. This pattern indicates a temporary slowdown in the collection of receivables or an expansion of credit terms granted to customers, resulting in a longer average collection period.
- Recovery and Recent Volatility (2026)
- A sharp recovery occurred in December 2025, with the ratio returning to 4.91. However, the most significant deviation occurs in the final reported period ending September 30, 2026, where the turnover ratio spiked to 6.61. This peak is accompanied by a substantial reduction in both net sales (4,994 million) and accounts receivable (5,086 million), suggesting a significant change in operating volume or a specific balance sheet event that accelerated the turnover of outstanding receivables.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Payables Turnover
Honeywell International Inc., payables turnover 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) | |||||||||||||||||||||||||
| Cost of products and services sold | 2,976) | 6,066) | 5,604) | 6,288) | 6,204) | 5,658) | 5,463) | 6,418) | 5,979) | 5,856) | 5,583) | 6,201) | 5,670) | 5,626) | 5,498) | 5,769) | 5,594) | 5,660) | 5,324) | ||||||
| Accounts payable | 3,592) | 6,390) | 6,026) | 6,315) | 7,314) | 7,111) | 6,734) | 6,880) | 6,640) | 6,470) | 6,468) | 6,849) | 6,428) | 6,445) | 6,443) | 6,329) | 6,118) | 6,245) | 6,285) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Payables turnover1 | 5.83 | 3.78 | 3.94 | 3.74 | 3.25 | 3.31 | 3.52 | 3.46 | 3.56 | 3.60 | 3.57 | 3.36 | 3.51 | 3.49 | 3.50 | 3.53 | 3.68 | 3.63 | 3.66 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 5.62 | 6.25 | 6.40 | 6.50 | 6.81 | 6.72 | 6.43 | 6.03 | 5.79 | 5.61 | 5.92 | 5.86 | 6.18 | 6.28 | 6.37 | 6.18 | 6.36 | 6.17 | 6.73 | ||||||
| Caterpillar Inc. | — | 4.76 | 4.88 | 4.99 | 4.78 | 4.69 | 5.07 | 5.24 | 5.31 | 5.47 | 5.44 | 5.41 | 5.54 | 5.09 | 4.68 | 4.76 | 4.81 | 4.72 | 4.43 | ||||||
| Eaton Corp. plc | 3.51 | 3.55 | 3.67 | 4.11 | 4.31 | 4.27 | 4.26 | 4.18 | 4.24 | 4.31 | 4.38 | 4.39 | 4.48 | 4.52 | 4.55 | 4.51 | 4.61 | 4.43 | 4.67 | ||||||
| GE Aerospace | 3.10 | 3.02 | 2.89 | 2.87 | 2.88 | 2.72 | 2.85 | 3.07 | 4.08 | 5.01 | 2.99 | 3.27 | 3.26 | 3.41 | 3.57 | 2.98 | 3.14 | 3.14 | 3.32 | ||||||
| Lockheed Martin Corp. | 13.95 | 13.82 | 14.39 | 18.58 | 17.57 | 18.06 | 16.89 | 28.85 | 19.48 | 19.07 | 17.38 | 25.56 | 15.51 | 16.97 | 17.65 | 27.25 | 21.48 | 24.07 | 21.92 | ||||||
| RTX Corp. | 4.25 | 4.38 | 4.51 | 4.46 | 4.72 | 4.98 | 4.89 | 5.07 | 5.40 | 5.54 | 5.60 | 5.31 | 5.37 | 5.54 | 5.42 | 5.40 | 5.82 | 5.36 | 6.28 | ||||||
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
Payables turnover
= (Cost of products and services soldQ3 2026
+ Cost of products and services soldQ2 2026
+ Cost of products and services soldQ1 2026
+ Cost of products and services soldQ4 2025)
÷ Accounts payable
= (2,976 + 6,066 + 5,604 + 6,288)
÷ 3,592 = 5.83
2 Click competitor name to see calculations.
The analysis of payables turnover reveals a period of relative stability followed by increased volatility and a significant surge in turnover rates toward the end of the observed period. For the majority of the timeline, the turnover ratio fluctuated within a narrow band between 3.25 and 3.94, suggesting a consistent approach to managing supplier obligations relative to the cost of products and services sold.
- Stability and Gradual Decline (2022–2023)
- From March 2022 through December 2023, the payables turnover ratio remained largely consistent, beginning at 3.66 and ending the year at 3.36. This period is characterized by accounts payable levels remaining steady between 6.1 billion and 6.8 billion US dollars, while costs of products and services sold showed moderate seasonal fluctuations. The slight downward trend toward the end of 2023 indicates a marginal slowing in the rate at which supplier obligations were settled.
- Cyclical Fluctuations (2024–2025)
- During 2024 and the first three quarters of 2025, the ratio exhibited cyclical movements. A peak of 3.60 was observed in June 2024, followed by a decline to a period low of 3.25 by September 2025. This decline coincided with accounts payable reaching their highest levels, peaking at 7.3 billion US dollars in September 2025, suggesting a strategic extension of payment terms or an increase in credit utilization from suppliers during this timeframe.
- Accelerated Turnover (2025–2026)
- A sharp reversal in the trend occurred in December 2025, with the ratio jumping to 3.74. This acceleration continued into 2026, reaching 3.94 in March and remaining elevated at 3.78 in June. The most significant deviation occurred in September 2026, where the turnover ratio spiked to 5.83. This outlier is directly correlated with a substantial reduction in both accounts payable, which fell to 3.59 billion US dollars, and the cost of products and services sold, which decreased to 2.98 billion US dollars.
Overall, the data indicates that while the company maintained a predictable payment cycle for several years, the latter part of the period reflects a transition toward significantly faster payables turnover. The abrupt increase in the final quarter suggests a major adjustment in supplier payment dynamics or a significant reduction in operating scale for that specific period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Working Capital Turnover
Honeywell International Inc., working capital turnover 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) | |||||||||||||||||||||||||
| Current assets | 14,316) | 28,079) | 30,590) | 30,387) | 30,747) | 27,967) | 27,645) | 27,908) | 28,164) | 25,369) | 27,434) | 23,502) | 23,320) | 24,183) | 22,510) | 24,982) | 22,525) | 23,847) | 24,281) | ||||||
| Less: Current liabilities | 14,911) | 23,194) | 22,085) | 23,414) | 22,639) | 21,619) | 22,071) | 21,256) | 19,534) | 21,044) | 16,488) | 18,539) | 17,227) | 17,174) | 17,896) | 19,938) | 18,109) | 19,947) | 20,027) | ||||||
| Working capital | (595) | 4,885) | 8,505) | 6,973) | 8,108) | 6,348) | 5,574) | 6,652) | 8,630) | 4,325) | 10,946) | 4,963) | 6,093) | 7,009) | 4,614) | 5,044) | 4,416) | 3,900) | 4,254) | ||||||
| Net sales | 4,994) | 9,719) | 9,143) | 9,758) | 9,437) | 9,322) | 8,925) | 10,088) | 9,728) | 9,577) | 9,105) | 9,440) | 9,212) | 9,146) | 8,864) | 9,186) | 8,951) | 8,953) | 8,376) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Working capital turnover1 | — | 7.79 | 4.43 | 5.37 | 4.66 | 6.00 | 6.87 | 5.79 | 4.39 | 8.63 | 3.37 | 7.39 | 5.98 | 5.16 | 7.79 | 7.03 | 7.91 | 8.84 | 8.07 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 6.20 | 6.24 | 4.96 | 4.40 | 4.29 | 3.15 | 2.89 | 2.15 | 6.04 | 4.13 | 5.76 | 5.78 | 5.46 | 4.80 | 4.61 | 3.42 | 3.13 | 2.87 | 2.51 | ||||||
| Caterpillar Inc. | — | 4.84 | 5.30 | 4.02 | 4.42 | 5.04 | 5.73 | 4.58 | 4.89 | 6.61 | 5.64 | 5.23 | 4.27 | 5.29 | 4.25 | 4.62 | 4.35 | 3.93 | 3.83 | ||||||
| Eaton Corp. plc | 10.52 | 10.49 | 12.60 | 9.20 | 10.02 | 11.29 | 8.69 | 6.31 | 5.84 | 5.33 | 5.58 | 5.91 | 6.61 | 6.16 | 7.01 | 8.70 | 10.69 | — | — | ||||||
| GE Aerospace | — | — | 134.54 | 26.19 | 14.05 | 28.44 | 13.68 | 10.83 | 9.60 | 11.15 | 6.93 | 7.24 | 8.11 | 5.70 | 5.87 | 7.93 | 13.29 | 10.55 | 7.14 | ||||||
| Lockheed Martin Corp. | 12.25 | 16.77 | 25.12 | 37.02 | 24.76 | — | 44.49 | 29.25 | 13.20 | 15.88 | 13.24 | 18.85 | 11.04 | 10.56 | 12.81 | 12.93 | 14.03 | 14.28 | 15.14 | ||||||
| RTX Corp. | 33.43 | 140.18 | 63.20 | 57.24 | 22.14 | 257.23 | 279.93 | — | — | — | 23.64 | 41.62 | 44.25 | 16.99 | 12.76 | 20.15 | 19.15 | 17.77 | 11.41 | ||||||
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
Working capital turnover
= (Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025)
÷ Working capital
= (4,994 + 9,719 + 9,143 + 9,758)
÷ -595 = —
2 Click competitor name to see calculations.
The analysis of operational efficiency reveals significant volatility in the utilization of working capital to generate net sales. While revenue streams remained relatively stable for the majority of the observed period, substantial fluctuations in working capital led to inconsistent turnover performance.
- Net Sales Trends
- Revenue exhibited a gradual upward trajectory from March 2022 through December 2024, rising from $8.376 billion to a peak of $10.088 billion. Following this peak, sales generally fluctuated between $8.9 billion and $9.7 billion, before experiencing a sharp decline to $4.994 billion in September 2026.
- Working Capital Volatility
- Working capital levels showed substantial instability, characterized by a significant spike in March 2024, where it reached a maximum of $10.946 billion. This was followed by a period of fluctuation between approximately $4.3 billion and $8.6 billion. A critical transition occurred in the final reporting period of September 2026, where working capital shifted to a negative value of -$595 million.
- Working Capital Turnover Performance
- The turnover ratio demonstrates a clear inverse relationship with working capital levels. High operational efficiency was observed in June 2022 (8.84) and June 2024 (8.63). Conversely, the lowest efficiency was recorded in March 2024, with a ratio of 3.37, coinciding with the peak in working capital. The absence of a turnover ratio in the final period is a direct result of the negative working capital position, which renders the standard ratio calculation non-applicable.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Average Inventory Processing Period
Honeywell International Inc., average inventory processing period 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 | |||||||||||||||||||||||||
| Inventory turnover | 10.18 | 3.77 | 3.73 | 3.83 | 3.34 | 3.35 | 3.59 | 3.70 | 3.73 | 3.69 | 3.65 | 3.72 | 3.76 | 3.82 | 3.90 | 4.04 | 4.09 | 4.06 | 4.20 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average inventory processing period1 | 36 | 97 | 98 | 95 | 109 | 109 | 102 | 99 | 98 | 99 | 100 | 98 | 97 | 96 | 94 | 90 | 89 | 90 | 87 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 386 | 360 | 363 | 363 | 377 | 424 | 459 | 466 | 428 | 470 | 443 | 415 | 419 | 416 | 438 | 452 | 468 | 494 | 493 | ||||||
| Caterpillar Inc. | — | 153 | 152 | 148 | 166 | 169 | 165 | 153 | 155 | 151 | 146 | 141 | 148 | 151 | 154 | 144 | 155 | 152 | 148 | ||||||
| Eaton Corp. plc | 104 | 103 | 104 | 101 | 102 | 104 | 103 | 100 | 100 | 96 | 95 | 92 | 93 | 93 | 93 | 90 | 92 | 94 | 90 | ||||||
| GE Aerospace | 137 | 139 | 146 | 150 | 156 | 160 | 156 | 147 | 111 | 89 | 141 | 120 | 121 | 116 | 110 | 114 | 118 | 120 | 112 | ||||||
| Lockheed Martin Corp. | 21 | 24 | 23 | 19 | 20 | 20 | 20 | 20 | 19 | 18 | 20 | 19 | 20 | 22 | 22 | 20 | 20 | 23 | 20 | ||||||
| RTX Corp. | 72 | 71 | 72 | 69 | 73 | 77 | 76 | 71 | 77 | 79 | 77 | 76 | 79 | 78 | 76 | 73 | 73 | 71 | 69 | ||||||
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 10.18 = 36
2 Click competitor name to see calculations.
The analysis of inventory management metrics reveals a prolonged period of slowing inventory velocity followed by a sudden and significant increase in efficiency in the final reported quarter. From early 2022 through mid-2025, a consistent deterioration in inventory turnover was observed, coinciding with a steady rise in the average inventory processing period.
- Inventory Turnover Trends
- Between March 31, 2022, and September 30, 2025, turnover ratios experienced a gradual decline from 4.20 to 3.34. This downward trend indicates a reduction in the frequency with which inventory was sold and replaced. A stabilization phase occurred between December 2025 and June 2026, with ratios returning to a range between 3.73 and 3.83. This trajectory culminated in a substantial spike to 10.18 by September 30, 2026.
- Average Inventory Processing Period Analysis
- The number of days required to process inventory showed a steady upward trajectory, starting at 87 days in March 2022 and reaching a peak of 109 days in June and September 2025. This increase reflects a slowdown in the conversion of inventory into sales. A corrective phase was observed starting in December 2025, which brought the processing period back to the 95–98 day range before a precipitous drop to 36 days in the final quarter ending September 30, 2026.
- Operational Correlation and Volatility
- A strong inverse correlation is maintained between inventory turnover and the processing period throughout the observed timeframe. The most significant volatility occurs in the final reported quarter of 2026; the drastic reduction in processing days from 97 to 36, coupled with the simultaneous increase in turnover from 3.77 to 10.18, suggests an atypical operational event or a strategic shift in inventory liquidation and management.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Average Receivable Collection Period
Honeywell International Inc., average receivable collection period 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 | |||||||||||||||||||||||||
| Receivables turnover | 6.61 | 4.56 | 4.67 | 4.91 | 4.23 | 4.31 | 4.64 | 4.92 | 4.80 | 4.81 | 4.94 | 4.87 | 4.65 | 4.52 | 4.57 | 4.77 | 4.74 | 4.45 | 4.82 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average receivable collection period1 | 55 | 80 | 78 | 74 | 86 | 85 | 79 | 74 | 76 | 76 | 74 | 75 | 79 | 81 | 80 | 77 | 77 | 82 | 76 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 16 | 14 | 14 | 12 | 15 | 15 | 17 | 14 | 14 | 16 | 14 | 12 | 15 | 15 | 15 | 14 | 16 | 18 | 14 | ||||||
| Caterpillar Inc. | — | 68 | 62 | 62 | 61 | 59 | 56 | 55 | 53 | 55 | 53 | 53 | 53 | 56 | 57 | 57 | 55 | 60 | 67 | ||||||
| Eaton Corp. plc | 82 | 81 | 81 | 72 | 76 | 77 | 73 | 68 | 72 | 73 | 72 | 70 | 72 | 73 | 72 | 72 | 69 | 71 | 68 | ||||||
| GE Aerospace | 104 | 95 | 101 | 102 | 97 | 101 | 98 | 97 | 75 | 60 | 93 | 87 | 79 | 78 | 73 | 89 | 87 | 83 | 82 | ||||||
| Lockheed Martin Corp. | 14 | 16 | 11 | 19 | 19 | 17 | 10 | 12 | 11 | 15 | 12 | 12 | 13 | 19 | 14 | 14 | 14 | 19 | 14 | ||||||
| RTX Corp. | 56 | 54 | 52 | 61 | 54 | 54 | 51 | 50 | 47 | 52 | 53 | 57 | 55 | 51 | 54 | 50 | 51 | 58 | 51 | ||||||
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.61 = 55
2 Click competitor name to see calculations.
The analysis of receivables management indicates a prolonged period of relative stability followed by a significant improvement in collection efficiency toward the end of the observed timeframe. An inverse correlation is maintained between the receivables turnover ratio and the average receivable collection period throughout the entire period.
- Operational Stability (2022–2024)
- Between March 2022 and December 2024, the average receivable collection period remained within a consistent range, fluctuating between a minimum of 74 days and a maximum of 82 days. During this interval, the receivables turnover ratio generally stayed between 4.45 and 4.94, suggesting a steady and predictable cadence in the conversion of credit sales into cash.
- Mid-Term Volatility (2025)
- A temporary decline in collection efficiency was observed during the first half of 2025. The average collection period peaked at 86 days in September 2025, which coincided with the lowest turnover ratio in the sequence at 4.23. This indicates a transient slowing of cash inflows from customers during this period.
- Accelerated Collection Performance (2026)
- A substantial improvement in operating activity is evident by the third quarter of 2026. The average receivable collection period decreased sharply to 55 days, the lowest value recorded in the data set. This coincides with a significant spike in the receivables turnover ratio to 6.61, reflecting a marked acceleration in the recovery of outstanding receivables and enhanced liquidity management.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Operating Cycle
Honeywell International Inc., operating cycle calculation (quarterly data)
No. days
| 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 | |||||||||||||||||||||||||
| Average inventory processing period | 36 | 97 | 98 | 95 | 109 | 109 | 102 | 99 | 98 | 99 | 100 | 98 | 97 | 96 | 94 | 90 | 89 | 90 | 87 | ||||||
| Average receivable collection period | 55 | 80 | 78 | 74 | 86 | 85 | 79 | 74 | 76 | 76 | 74 | 75 | 79 | 81 | 80 | 77 | 77 | 82 | 76 | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Operating cycle1 | 91 | 177 | 176 | 169 | 195 | 194 | 181 | 173 | 174 | 175 | 174 | 173 | 176 | 177 | 174 | 167 | 166 | 172 | 163 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 402 | 374 | 377 | 375 | 392 | 439 | 476 | 480 | 442 | 486 | 457 | 427 | 434 | 431 | 453 | 466 | 484 | 512 | 507 | ||||||
| Caterpillar Inc. | — | 221 | 214 | 210 | 227 | 228 | 221 | 208 | 208 | 206 | 199 | 194 | 201 | 207 | 211 | 201 | 210 | 212 | 215 | ||||||
| Eaton Corp. plc | 186 | 184 | 185 | 173 | 178 | 181 | 176 | 168 | 172 | 169 | 167 | 162 | 165 | 166 | 165 | 162 | 161 | 165 | 158 | ||||||
| GE Aerospace | 241 | 234 | 247 | 252 | 253 | 261 | 254 | 244 | 186 | 149 | 234 | 207 | 200 | 194 | 183 | 203 | 205 | 203 | 194 | ||||||
| Lockheed Martin Corp. | 35 | 40 | 34 | 38 | 39 | 37 | 30 | 32 | 30 | 33 | 32 | 31 | 33 | 41 | 36 | 34 | 34 | 42 | 34 | ||||||
| RTX Corp. | 128 | 125 | 124 | 130 | 127 | 131 | 127 | 121 | 124 | 131 | 130 | 133 | 134 | 129 | 130 | 123 | 124 | 129 | 120 | ||||||
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 36 + 55 = 91
2 Click competitor name to see calculations.
The operating cycle exhibits a general expansionary trend from early 2022 through mid-2025, followed by a period of stabilization and a sharp, anomalous contraction in the final recorded quarter. This suggests a prolonged period of decreasing operational efficiency in working capital management that was abruptly reversed by September 30, 2026.
- Average Inventory Processing Period
- A steady increase is observed from 87 days in March 2022 to a peak of 109 days in June and September 2025. This upward trajectory indicates a slowing of inventory turnover, suggesting either an accumulation of unsold stock or strategic stockpiling. Following this peak, the period regressed to 98 days by June 2026, before experiencing a drastic reduction to 36 days by September 30, 2026.
- Average Receivable Collection Period
- The collection period remained relatively stable between 74 and 86 days for the majority of the analyzed period. A slight deterioration in collection efficiency occurred between March 2025 and September 2025, where the period climbed to 86 days. Similar to the inventory trend, this metric showed a significant and sudden decrease to 55 days in the final quarter ending September 30, 2026.
- Operating Cycle
- The total operating cycle reflects the combined impact of inventory and receivable trends, rising from 163 days in March 2022 to a maximum of 195 days in September 2025. This represents a significant increase in the time required to convert resource inputs into cash flows. The cycle then normalized to the 169-177 day range through the first half of 2026, ending with a sharp decline to 91 days in September 2026.
The volatility observed in the final quarter of 2026 is a critical point of analysis. The simultaneous collapse of both the inventory processing and receivable collection periods suggests a fundamental shift in operational dynamics, potentially resulting from aggressive inventory liquidation, a change in revenue recognition policies, or a significant restructuring of credit terms.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Average Payables Payment Period
Honeywell International Inc., average payables payment period 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 | |||||||||||||||||||||||||
| Payables turnover | 5.83 | 3.78 | 3.94 | 3.74 | 3.25 | 3.31 | 3.52 | 3.46 | 3.56 | 3.60 | 3.57 | 3.36 | 3.51 | 3.49 | 3.50 | 3.53 | 3.68 | 3.63 | 3.66 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average payables payment period1 | 63 | 97 | 93 | 98 | 112 | 110 | 104 | 105 | 103 | 101 | 102 | 109 | 104 | 105 | 104 | 103 | 99 | 101 | 100 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 65 | 58 | 57 | 56 | 54 | 54 | 57 | 61 | 63 | 65 | 62 | 62 | 59 | 58 | 57 | 59 | 57 | 59 | 54 | ||||||
| Caterpillar Inc. | — | 77 | 75 | 73 | 76 | 78 | 72 | 70 | 69 | 67 | 67 | 67 | 66 | 72 | 78 | 77 | 76 | 77 | 82 | ||||||
| Eaton Corp. plc | 104 | 103 | 100 | 89 | 85 | 85 | 86 | 87 | 86 | 85 | 83 | 83 | 82 | 81 | 80 | 81 | 79 | 82 | 78 | ||||||
| GE Aerospace | 118 | 121 | 126 | 127 | 127 | 134 | 128 | 119 | 89 | 73 | 122 | 112 | 112 | 107 | 102 | 123 | 116 | 116 | 110 | ||||||
| Lockheed Martin Corp. | 26 | 26 | 25 | 20 | 21 | 20 | 22 | 13 | 19 | 19 | 21 | 14 | 24 | 22 | 21 | 13 | 17 | 15 | 17 | ||||||
| RTX Corp. | 86 | 83 | 81 | 82 | 77 | 73 | 75 | 72 | 68 | 66 | 65 | 69 | 68 | 66 | 67 | 68 | 63 | 68 | 58 | ||||||
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.83 = 63
2 Click competitor name to see calculations.
The analysis of short-term operating activity reveals a prolonged period of relative stability followed by a significant contraction in the time taken to settle obligations with suppliers toward the end of the observed timeframe.
- Payables Turnover Trends
- From March 2022 through December 2024, the payables turnover ratio exhibited minimal volatility, generally fluctuating between 3.36 and 3.68. A moderate decline occurred during the first half of 2025, reaching a low of 3.25 in June 2025. Subsequently, a sharp upward trajectory was observed, culminating in a peak of 5.83 by September 2026, indicating a substantial increase in the frequency with which accounts payable are cleared.
- Average Payables Payment Period Analysis
- The average payment period remained consistently elevated for the majority of the analyzed period, oscillating between 99 and 112 days from March 2022 to June 2025. This suggests a sustained operational strategy of extending payment terms. A notable shift occurred after June 2025, characterized by a steady decline in the number of days to pay. This trend accelerated sharply in 2026, falling from 97 days in June 2026 to a period low of 63 days in September 2026.
The inverse correlation between the turnover ratio and the payment period is pronounced, particularly in the final quarters. The drastic reduction in the average payment period to 63 days suggests a fundamental change in working capital management, potentially indicating a shift in supplier credit terms or an intentional acceleration of cash outflows to settle liabilities more rapidly during the latter part of 2026.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Cash Conversion Cycle
Honeywell International Inc., cash conversion cycle calculation (quarterly data)
No. days
| 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 | |||||||||||||||||||||||||
| Average inventory processing period | 36 | 97 | 98 | 95 | 109 | 109 | 102 | 99 | 98 | 99 | 100 | 98 | 97 | 96 | 94 | 90 | 89 | 90 | 87 | ||||||
| Average receivable collection period | 55 | 80 | 78 | 74 | 86 | 85 | 79 | 74 | 76 | 76 | 74 | 75 | 79 | 81 | 80 | 77 | 77 | 82 | 76 | ||||||
| Average payables payment period | 63 | 97 | 93 | 98 | 112 | 110 | 104 | 105 | 103 | 101 | 102 | 109 | 104 | 105 | 104 | 103 | 99 | 101 | 100 | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Cash conversion cycle1 | 28 | 80 | 83 | 71 | 83 | 84 | 77 | 68 | 71 | 74 | 72 | 64 | 72 | 72 | 70 | 64 | 67 | 71 | 63 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 337 | 316 | 320 | 319 | 338 | 385 | 419 | 419 | 379 | 421 | 395 | 365 | 375 | 373 | 396 | 407 | 427 | 453 | 453 | ||||||
| Caterpillar Inc. | — | 144 | 139 | 137 | 151 | 150 | 149 | 138 | 139 | 139 | 132 | 127 | 135 | 135 | 133 | 124 | 134 | 135 | 133 | ||||||
| Eaton Corp. plc | 82 | 81 | 85 | 84 | 93 | 96 | 90 | 81 | 86 | 84 | 84 | 79 | 83 | 85 | 85 | 81 | 82 | 83 | 80 | ||||||
| GE Aerospace | 123 | 113 | 121 | 125 | 126 | 127 | 126 | 125 | 97 | 76 | 112 | 95 | 88 | 87 | 81 | 80 | 89 | 87 | 84 | ||||||
| Lockheed Martin Corp. | 9 | 14 | 9 | 18 | 18 | 17 | 8 | 19 | 11 | 14 | 11 | 17 | 9 | 19 | 15 | 21 | 17 | 27 | 17 | ||||||
| RTX Corp. | 42 | 42 | 43 | 48 | 50 | 58 | 52 | 49 | 56 | 65 | 65 | 64 | 66 | 63 | 63 | 55 | 61 | 61 | 62 | ||||||
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 36 + 55 – 63 = 28
2 Click competitor name to see calculations.
The cash conversion cycle exhibits a general upward trend from early 2022 through mid-2025, indicating a gradual increase in the time required to convert resource inputs into cash flows. This period is characterized by a slow expansion of the cycle, peaking at 84 days in June 2025, before experiencing a substantial and abrupt contraction in the final reporting period.
- Average Inventory Processing Period
- A steady increase is observed from 87 days in March 2022 to a peak of 109 days in the second and third quarters of 2025. This suggests a slower turnover of inventory over this timeframe. However, a significant reduction to 36 days occurs by September 2026, representing a sharp departure from the established multi-year trend.
- Average Receivable Collection Period
- Collection periods remained relatively stable for the majority of the analyzed period, fluctuating between 74 and 86 days. A peak in collection time was reached in September 2025 at 86 days, followed by a notable decline to 55 days in September 2026, suggesting a rapid acceleration in receivable turnovers toward the end of the period.
- Average Payables Payment Period
- The payment period generally trended upward, moving from 100 days in March 2022 to a high of 112 days in September 2025. This indicates an increasing extension of supplier credit, which served to partially mitigate the increases in inventory and receivable periods. This metric contracted sharply to 63 days in September 2026.
The overall cash conversion cycle remained largely influenced by the balance between increasing inventory holding times and the extension of payables. The cycle peaked in mid-2025, reflecting a period of reduced operational efficiency in cash recovery. The final observation in September 2026 shows a dramatic reduction in the cycle to 28 days, driven by simultaneous and significant drops across all three components of the operating cycle.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?