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)
Honeywell International Inc., short-term (operating) activity ratios (quarterly data)
Based on: 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).
An examination of short-term operating activity ratios reveals several trends over the observed period. Generally, a slight decline in efficiency metrics is apparent, particularly from 2022 through 2025, though some ratios show stabilization or modest improvement in the latter part of the period. The analysis indicates potential shifts in inventory management, credit policies, and supplier relationships.
- Inventory Management
- Inventory turnover demonstrates a consistent, albeit gradual, downward trend, decreasing from 4.20 in March 2022 to 3.83 in December 2025. This suggests a lengthening of the time it takes to sell inventory. Correspondingly, the average inventory processing period increased from 87 days to 95 days over the same timeframe, reinforcing the observation of slower inventory movement. A slight recovery in inventory turnover is noted in the final quarter of 2025.
- Receivables Management
- Receivables turnover exhibits more fluctuation than inventory turnover, but generally remains relatively stable between 4.45 and 4.94 throughout the period. A slight increase is observed in the final quarter of 2025, reaching 4.91. The average receivable collection period shows a similar pattern, fluctuating between 75 and 82 days, with a return to 74 days in both March and December of 2025. These figures suggest consistent, though not dramatically changing, credit and collection practices.
- Payables Management
- Payables turnover shows a modest decline from 3.66 in March 2022 to 3.74 in December 2025, indicating a slight lengthening in the time taken to pay suppliers. The average payables payment period increased from 100 days to 98 days over the period, suggesting a potential shift in negotiating payment terms with suppliers. A dip in payables turnover in December 2022 and December 2023 is notable.
- Overall Efficiency – Working Capital & Cycles
- Working capital turnover experienced a significant decrease from 8.07 in March 2022 to 5.37 in December 2025, indicating a less efficient utilization of working capital. The operating cycle generally increased from 163 days to 169 days, reflecting the combined effect of changes in inventory and receivables. The cash conversion cycle also increased, from 63 days to 71 days, suggesting a longer time between investing in inventory and collecting cash from sales. A substantial drop in working capital turnover occurred between June and September 2023, followed by some recovery, but not to previous levels.
In summary, the observed trends suggest a gradual decrease in operational efficiency, particularly concerning inventory and working capital management. While receivables management appears relatively stable, the lengthening of the cash conversion cycle warrants further investigation. The slight improvements observed in the final quarter of 2025 for some ratios may indicate the beginning of a stabilization or potential reversal of these trends.
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Turnover Ratios
Average No. Days
Inventory Turnover
Honeywell International Inc., inventory turnover calculation (quarterly data)
| 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 | 4,386) | 6,861) | 6,329) | 6,037) | 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 | 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 | 3.83 | 3.60 | 3.53 | 3.67 | 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. | 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. | 2.47 | 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 | 3.63 | 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 | 2.44 | 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. | 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. | 5.30 | 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-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 Q4 2025 Calculation
Inventory turnover
= (Cost of products and services soldQ4 2025
+ Cost of products and services soldQ3 2025
+ Cost of products and services soldQ2 2025
+ Cost of products and services soldQ1 2025)
÷ Inventories
= (4,386 + 6,861 + 6,329 + 6,037)
÷ 6,162 = 3.83
2 Click competitor name to see calculations.
Inventory turnover exhibited a generally declining trend over the observed period, spanning from March 31, 2022, to December 31, 2025. While fluctuations occurred, the ratio consistently decreased, indicating a lengthening of the time it takes to sell inventory. A slight recovery is observed in the most recent quarter.
- Overall Trend
- The inventory turnover ratio decreased from 4.20 in March 2022 to a low of 3.53 in June 2025, before increasing to 3.83 in December 2025. This suggests a gradual slowdown in the rate at which inventory is converted into sales.
- Initial Decline (2022-2023)
- From March 2022 to December 2022, the ratio experienced a moderate decline, moving from 4.20 to 3.72. This initial decrease could be attributed to various factors, including increased inventory levels or a slowdown in sales growth. The decline continued through the first half of 2023, reaching 3.82 in June 2023.
- Continued Decrease (2023-Mid 2025)
- The ratio continued its downward trajectory throughout 2023 and into mid-2025, reaching its lowest point of 3.53 in June 2025. This period reflects a sustained weakening in inventory efficiency. The cost of products and services sold increased over this period, while inventory levels also rose, contributing to the lower turnover.
- Recent Recovery (Late 2025)
- A notable increase in the inventory turnover ratio is observed in the final quarter, rising to 3.83 in December 2025. This improvement coincides with a significant decrease in reported inventories, while the cost of products and services sold remained relatively high. This suggests a potential effort to reduce inventory levels or a surge in sales during this period.
- Inventory and Cost of Goods Sold Relationship
- A review of the cost of products and services sold and inventory levels reveals a general increase in both throughout most of the period. The increase in inventory appears to have outpaced the growth in cost of goods sold, contributing to the declining turnover ratio. The recent decrease in inventory in the final quarter is a key driver of the ratio’s improvement.
In summary, the observed trend indicates a weakening in inventory management efficiency for most of the analyzed period, followed by a potential stabilization and slight improvement in the most recent quarter. Further investigation into the factors driving these changes, such as shifts in demand, supply chain dynamics, and inventory management strategies, would be beneficial.
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Receivables Turnover
Honeywell International Inc., receivables turnover calculation (quarterly data)
| 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 | 6,860) | 10,408) | 10,352) | 9,822) | 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 | 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 | 4.91 | 4.56 | 4.53 | 4.75 | 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. | 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. | 5.86 | 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 | 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 | 3.59 | 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. | 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. | 6.03 | 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-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 Q4 2025 Calculation
Receivables turnover
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Accounts receivable, less allowances
= (6,860 + 10,408 + 10,352 + 9,822)
÷ 7,621 = 4.91
2 Click competitor name to see calculations.
The receivables turnover ratio for the analyzed period demonstrates a generally stable pattern with some fluctuations. Overall, the ratio remains within a relatively narrow range, indicating consistent efficiency in collecting receivables. However, closer examination reveals distinct trends and variations throughout the observed timeframe.
- Overall Trend
- The receivables turnover ratio generally fluctuates between approximately 4.45 and 4.94 over the period from March 31, 2022, to December 31, 2025. This suggests a consistent, though not dramatically changing, ability to convert accounts receivable into cash. The ratio shows a slight upward trend in the latter half of the period.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The ratio begins at 4.82 and experiences a decline to 4.45 before recovering to 4.77 by the end of 2022. This initial fluctuation could be attributed to seasonal sales patterns or changes in credit terms offered to customers. The recovery in the final quarter of 2022 suggests improved collection efforts or a shift in the customer base.
- 2023 Performance
- Throughout 2023, the ratio remains relatively stable, oscillating between 4.52 and 4.87. This indicates a consistent level of efficiency in managing receivables during this year. There is no significant upward or downward trend observed, suggesting a stable credit and collection environment.
- Recent Fluctuations (2024-2025)
- The ratio exhibits a slight increase from 4.81 in March 2024 to 4.92 in December 2024, continuing to 4.91 in December 2025. This suggests a potential improvement in the speed of receivables collection in the more recent quarters. However, the final value of 4.91 is comparable to the initial value in March 2022, indicating a cyclical pattern. The value for June 2025 (4.53) represents a notable dip, potentially warranting further investigation.
- Impact of Sales
- A comparison of net sales and receivables turnover reveals a general correlation. Periods of higher sales often correspond with higher receivables turnover, and vice versa. However, the relationship is not perfectly linear, suggesting that factors beyond sales volume, such as credit policies and collection effectiveness, also play a significant role.
In conclusion, the receivables turnover ratio demonstrates a generally healthy and consistent performance. While fluctuations exist, they appear to be within an acceptable range and do not indicate any major concerns regarding the company’s ability to manage its receivables. The recent slight upward trend is a positive sign, but the dip in June 2025 should be monitored.
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Payables Turnover
Honeywell International Inc., payables turnover calculation (quarterly data)
| 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 | 4,386) | 6,861) | 6,329) | 6,037) | 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 | 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 | 3.74 | 3.51 | 3.48 | 3.61 | 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. | 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. | 4.99 | 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 | 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 | 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. | 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. | 4.46 | 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-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 Q4 2025 Calculation
Payables turnover
= (Cost of products and services soldQ4 2025
+ Cost of products and services soldQ3 2025
+ Cost of products and services soldQ2 2025
+ Cost of products and services soldQ1 2025)
÷ Accounts payable
= (4,386 + 6,861 + 6,329 + 6,037)
÷ 6,315 = 3.74
2 Click competitor name to see calculations.
The accounts payable turnover ratio for the analyzed period demonstrates a generally stable pattern with some fluctuation. Overall, the ratio remains within a relatively narrow range, suggesting consistent management of supplier credit and payment practices. However, a closer examination reveals subtle shifts throughout the observed timeframe.
- Overall Trend
- The payables turnover ratio generally fluctuates between 3.36 and 3.68. This indicates that, on average, the entity pays its suppliers approximately 3.4 to 3.7 times per year. There isn't a strong, sustained upward or downward trend across the entire period.
- Initial Period (Mar 31, 2022 - Dec 31, 2022)
- The ratio begins at 3.66 and experiences minor variations, decreasing to 3.53 by the end of 2022. This slight decline could be attributed to a combination of factors, including changes in purchasing patterns or adjustments to payment terms with suppliers. The cost of products and services sold remained relatively stable during this period.
- 2023 Performance
- Throughout 2023, the ratio remains relatively flat, hovering around 3.5. A slight decrease is observed from the beginning to the end of the year, moving from 3.50 to 3.48. The cost of products and services sold increased gradually throughout the year, culminating in a notable rise in December 2023.
- Recent Fluctuations (2024-2025)
- The ratio shows a slight increase to 3.57 in the first quarter of 2024, followed by continued stability around 3.60 for the next two quarters. A decrease to 3.46 is observed in December 2024, before recovering to 3.61 in March 2025. The most significant change occurs in the final quarter of 2025, with a notable increase to 3.74. This coincides with a substantial decrease in the cost of products and services sold, suggesting a potential shift in inventory management or a reduction in purchasing activity at year-end.
- Relationship to Cost of Products and Services Sold
- Generally, the payables turnover ratio appears to have an inverse relationship with the cost of products and services sold. When the cost of goods increases, the turnover ratio tends to decrease, and vice versa. However, this relationship is not consistently strong, indicating other factors also influence the ratio.
In conclusion, the accounts payable turnover ratio demonstrates a generally consistent pattern, with minor fluctuations throughout the analyzed period. The recent increase in the final quarter of 2025 warrants further investigation to determine the underlying causes and potential implications for the entity’s financial health.
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Working Capital Turnover
Honeywell International Inc., working capital turnover calculation (quarterly data)
| 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 | 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 | 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 | 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 | 6,860) | 10,408) | 10,352) | 9,822) | 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 | 5.37 | 5.02 | 6.30 | 7.04 | 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. | 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. | 4.02 | 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 | 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 | 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. | 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. | 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-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 Q4 2025 Calculation
Working capital turnover
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Working capital
= (6,860 + 10,408 + 10,352 + 9,822)
÷ 6,973 = 5.37
2 Click competitor name to see calculations.
The working capital turnover ratio exhibits considerable fluctuation throughout the observed period, spanning from March 31, 2022, to December 31, 2025. Initial values indicate a relatively strong turnover, followed by periods of decline and subsequent recovery, culminating in a more moderate level by the end of the analyzed timeframe.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The ratio begins at 8.07 and initially increases to 8.84 before declining to 7.03. This suggests a period of initially improving efficiency in utilizing working capital to generate sales, followed by a slight decrease in efficiency. The decline could be attributed to increases in working capital outpacing sales growth, or a slight decrease in sales.
- 2023 Performance
- The year 2023 demonstrates a significant shift. The ratio decreases substantially to 5.16 in the first quarter, indicating a considerable slowdown in working capital utilization. It partially recovers to 7.39 by the end of the year, but remains below the levels observed in 2022. This period coincides with a notable increase in working capital, particularly in the second quarter, suggesting potential inefficiencies or strategic investments requiring higher working capital levels.
- 2024 Volatility
- 2024 is characterized by extreme volatility. The ratio plummets to 3.37 in the first quarter, representing the lowest point in the observed period. A substantial rebound occurs in the second quarter, reaching 8.63, followed by declines to 4.39 and 5.79 in subsequent quarters. This suggests significant fluctuations in the relationship between working capital and sales, potentially driven by seasonal factors, inventory management changes, or shifts in payment terms.
- Recent Trend (2025)
- The ratio in 2025 shows a stabilization, albeit at a lower level than earlier periods. It begins at 7.04, decreases to 6.30, then further to 5.02, and concludes at 5.37. This indicates a sustained, though moderate, level of working capital turnover. The final value suggests a potential settling point after the volatility experienced in 2024, but also indicates a continued lower efficiency compared to the initial period of observation.
- Overall Trend
- Overall, the working capital turnover ratio demonstrates a decreasing trend when comparing the beginning and end of the period. While fluctuations are present, the ratio generally declines from a high of 8.84 to a final value of 5.37. This suggests a potential need to evaluate working capital management strategies to improve efficiency and optimize the utilization of assets to generate sales.
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Average Inventory Processing Period
Honeywell International Inc., average inventory processing period calculation (quarterly data)
| 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 | 3.83 | 3.60 | 3.53 | 3.67 | 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 | 95 | 101 | 103 | 99 | 99 | 98 | 99 | 100 | 98 | 97 | 96 | 94 | 90 | 89 | 90 | 87 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 363 | 377 | 424 | 459 | 466 | 428 | 470 | 443 | 415 | 419 | 416 | 438 | 452 | 468 | 494 | 493 | |||||
| Caterpillar Inc. | 148 | 166 | 169 | 165 | 153 | 155 | 151 | 146 | 141 | 148 | 151 | 154 | 144 | 155 | 152 | 148 | |||||
| Eaton Corp. plc | 101 | 102 | 104 | 103 | 100 | 100 | 96 | 95 | 92 | 93 | 93 | 93 | 90 | 92 | 94 | 90 | |||||
| GE Aerospace | 150 | 156 | 160 | 156 | 147 | 111 | 89 | 141 | 120 | 121 | 116 | 110 | 114 | 118 | 120 | 112 | |||||
| Lockheed Martin Corp. | 19 | 20 | 20 | 20 | 20 | 19 | 18 | 20 | 19 | 20 | 22 | 22 | 20 | 20 | 23 | 20 | |||||
| RTX Corp. | 69 | 73 | 77 | 76 | 71 | 77 | 79 | 77 | 76 | 79 | 78 | 76 | 73 | 73 | 71 | 69 | |||||
Based on: 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 Q4 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.83 = 95
2 Click competitor name to see calculations.
The average inventory processing period exhibited a generally increasing trend over the observed timeframe, spanning from March 31, 2022, to December 31, 2025. While fluctuations occurred, the overall movement suggests a lengthening in the time required to convert inventory into sales.
- Overall Trend
- From 87 days in March 2022, the average inventory processing period generally increased, reaching a peak of 103 days in June 2025, before decreasing to 95 days in December 2025. This indicates a potential slowdown in inventory turnover efficiency over much of the period.
- Short-Term Fluctuations (2022-2023)
- The period between March 2022 and December 2022 remained relatively stable, fluctuating between 87 and 90 days. A consistent increase began in March 2023, progressing from 94 days to 98 days by December 2023. This suggests a gradual build-up in the time taken to process inventory during this phase.
- Extended Increase (2024-Mid 2025)
- The upward trend continued into 2024, reaching 100 days in March and remaining near that level through September 2024. The period then peaked at 103 days in June 2025, representing the highest value observed throughout the entire timeframe.
- Recent Development (Late 2025)
- A decrease in the average inventory processing period was observed in the final quarter of the analyzed period, falling to 95 days in December 2025. This represents a potential stabilization or improvement in inventory management towards the end of the observation window, although further monitoring is needed to confirm a sustained reversal of the prior trend.
The observed increases in the average inventory processing period correlate inversely with the inventory turnover ratio, which demonstrated a declining trend over the same period. This suggests a potential need to investigate the underlying causes of the lengthening inventory cycle, such as changes in demand, supply chain disruptions, or inventory management practices.
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Average Receivable Collection Period
Honeywell International Inc., average receivable collection period calculation (quarterly data)
| 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 | 4.91 | 4.56 | 4.53 | 4.75 | 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 | 74 | 80 | 81 | 77 | 74 | 76 | 76 | 74 | 75 | 79 | 81 | 80 | 77 | 77 | 82 | 76 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 12 | 15 | 15 | 17 | 14 | 14 | 16 | 14 | 12 | 15 | 15 | 15 | 14 | 16 | 18 | 14 | |||||
| Caterpillar Inc. | 62 | 61 | 59 | 56 | 55 | 53 | 55 | 53 | 53 | 53 | 56 | 57 | 57 | 55 | 60 | 67 | |||||
| Eaton Corp. plc | 72 | 76 | 77 | 73 | 68 | 72 | 73 | 72 | 70 | 72 | 73 | 72 | 72 | 69 | 71 | 68 | |||||
| GE Aerospace | 102 | 97 | 101 | 98 | 97 | 75 | 60 | 93 | 87 | 79 | 78 | 73 | 89 | 87 | 83 | 82 | |||||
| Lockheed Martin Corp. | 19 | 19 | 17 | 10 | 12 | 11 | 15 | 12 | 12 | 13 | 19 | 14 | 14 | 14 | 19 | 14 | |||||
| RTX Corp. | 61 | 54 | 54 | 51 | 50 | 47 | 52 | 53 | 57 | 55 | 51 | 54 | 50 | 51 | 58 | 51 | |||||
Based on: 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 Q4 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.91 = 74
2 Click competitor name to see calculations.
The average receivable collection period exhibited relative stability over the observed period, with fluctuations primarily occurring within a narrow range. An initial increase is noted from the first to the second quarter of 2022, followed by a return to previous levels and subsequent minor variations throughout the remainder of the period.
- Overall Trend
- The average collection period generally remained between 74 and 82 days. While there isn't a strong directional trend, a slight decrease is observable in the later periods, particularly from 2023 through 2025.
- Short-Term Fluctuations (2022-2023)
- The period began at 76 days in March 2022, increasing to 82 days by June 2022. This was followed by a decrease to 77 days in September 2022, holding steady at 77 days in December 2022. The first half of 2023 saw a slight increase, reaching 81 days in June 2023, before decreasing to 79 days in September 2023 and 75 days in December 2023.
- Recent Performance (2024-2025)
- From March 2024 through June 2025, the average collection period fluctuated between 74 and 81 days. A low of 74 days was recorded in both December 2024 and December 2025. The most recent period, June 2025, shows a collection period of 81 days, representing a slight increase from the prior quarter but remaining within the historical range.
- Potential Observations
- The consistency in the average collection period suggests effective credit and collection policies. The minor fluctuations may be attributable to seasonal sales patterns or changes in customer payment behavior. The slight downward trend observed in the most recent periods could indicate improved efficiency in collecting receivables, but further investigation would be needed to confirm this.
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Operating Cycle
Honeywell International Inc., operating cycle calculation (quarterly data)
No. days
| 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 | 95 | 101 | 103 | 99 | 99 | 98 | 99 | 100 | 98 | 97 | 96 | 94 | 90 | 89 | 90 | 87 | |||||
| Average receivable collection period | 74 | 80 | 81 | 77 | 74 | 76 | 76 | 74 | 75 | 79 | 81 | 80 | 77 | 77 | 82 | 76 | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Operating cycle1 | 169 | 181 | 184 | 176 | 173 | 174 | 175 | 174 | 173 | 176 | 177 | 174 | 167 | 166 | 172 | 163 | |||||
| Benchmarks | |||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 375 | 392 | 439 | 476 | 480 | 442 | 486 | 457 | 427 | 434 | 431 | 453 | 466 | 484 | 512 | 507 | |||||
| Caterpillar Inc. | 210 | 227 | 228 | 221 | 208 | 208 | 206 | 199 | 194 | 201 | 207 | 211 | 201 | 210 | 212 | 215 | |||||
| Eaton Corp. plc | 173 | 178 | 181 | 176 | 168 | 172 | 169 | 167 | 162 | 165 | 166 | 165 | 162 | 161 | 165 | 158 | |||||
| GE Aerospace | 252 | 253 | 261 | 254 | 244 | 186 | 149 | 234 | 207 | 200 | 194 | 183 | 203 | 205 | 203 | 194 | |||||
| Lockheed Martin Corp. | 38 | 39 | 37 | 30 | 32 | 30 | 33 | 32 | 31 | 33 | 41 | 36 | 34 | 34 | 42 | 34 | |||||
| RTX Corp. | 130 | 127 | 131 | 127 | 121 | 124 | 131 | 130 | 133 | 134 | 129 | 130 | 123 | 124 | 129 | 120 | |||||
Based on: 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 Q4 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 95 + 74 = 169
2 Click competitor name to see calculations.
The operating cycle, along with its component parts, demonstrates a generally increasing trend over the observed period, with some fluctuations. Analysis reveals a lengthening in the time it takes to convert inventory into cash, and a relatively stable, though slightly increasing, collection period for receivables.
- Average Inventory Processing Period
- The average inventory processing period exhibited a gradual increase from 87 days in March 2022 to 100 days in March 2024. A slight dip to 99 days was noted in June 2024, followed by a return to 99 days in September 2024, and then 95 days in December 2025. This suggests a potential slowing in the efficiency of inventory management, although the most recent quarter shows some improvement. The period peaked at 103 days in June 2025.
- Average Receivable Collection Period
- The average receivable collection period showed more modest changes. It began at 76 days in March 2022 and generally trended upward, reaching 81 days in both June 2023 and June 2025. The period decreased to 74 days in December 2023 and again in December 2025, indicating some variability in collection efficiency. Overall, the collection period remained relatively stable, fluctuating within a range of approximately 6 to 8 days throughout the period.
- Operating Cycle
- The operating cycle, calculated as the sum of the inventory processing and receivable collection periods, increased from 163 days in March 2022 to 184 days in June 2025. A decrease to 169 days was observed in December 2025. The overall trend indicates a lengthening of the time required to complete the full operating cycle. The highest value was 177 days, observed in both June 2023 and September 2023. The increase in the operating cycle is primarily driven by the lengthening inventory processing period, with the receivable collection period contributing to a lesser extent.
The observed increases in the operating cycle components warrant further investigation to determine the underlying causes. Potential factors could include changes in inventory management strategies, shifts in customer payment terms, or broader economic conditions impacting sales and collections. The recent decrease in the operating cycle in December 2025 suggests potential corrective actions may be taking effect, but continued monitoring is recommended.
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Average Payables Payment Period
Honeywell International Inc., average payables payment period calculation (quarterly data)
| 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 | 3.74 | 3.51 | 3.48 | 3.61 | 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 | 98 | 104 | 105 | 101 | 105 | 103 | 101 | 102 | 109 | 104 | 105 | 104 | 103 | 99 | 101 | 100 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 56 | 54 | 54 | 57 | 61 | 63 | 65 | 62 | 62 | 59 | 58 | 57 | 59 | 57 | 59 | 54 | |||||
| Caterpillar Inc. | 73 | 76 | 78 | 72 | 70 | 69 | 67 | 67 | 67 | 66 | 72 | 78 | 77 | 76 | 77 | 82 | |||||
| Eaton Corp. plc | 89 | 85 | 85 | 86 | 87 | 86 | 85 | 83 | 83 | 82 | 81 | 80 | 81 | 79 | 82 | 78 | |||||
| GE Aerospace | 127 | 127 | 134 | 128 | 119 | 89 | 73 | 122 | 112 | 112 | 107 | 102 | 123 | 116 | 116 | 110 | |||||
| Lockheed Martin Corp. | 20 | 21 | 20 | 22 | 13 | 19 | 19 | 21 | 14 | 24 | 22 | 21 | 13 | 17 | 15 | 17 | |||||
| RTX Corp. | 82 | 77 | 73 | 75 | 72 | 68 | 66 | 65 | 69 | 68 | 66 | 67 | 68 | 63 | 68 | 58 | |||||
Based on: 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 Q4 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.74 = 98
2 Click competitor name to see calculations.
The average payables payment period exhibited a generally stable pattern over the observed period, with fluctuations primarily occurring within a relatively narrow range. An initial increase is noted from the first quarter of 2022 through the second quarter of 2023, followed by a period of relative stability and a subsequent decrease towards the end of the observation window.
- Overall Trend
- The average payables payment period generally ranged between 98 and 109 days. While some quarterly variations occurred, the metric did not demonstrate a strong, sustained upward or downward trajectory over the entire period. The period appears to have peaked in the fourth quarter of 2022 and the second quarter of 2023 before declining.
- Initial Increase (Q1 2022 - Q2 2023)
- From March 31, 2022, to June 30, 2023, the average payables payment period increased from 100 days to 105 days. This suggests a lengthening in the time taken to settle obligations to suppliers during this timeframe. The increase was incremental, with only slight changes observed each quarter.
- Period of Stability (Q3 2023 - Q1 2024)
- Following the peak in the second quarter of 2023, the average payables payment period remained relatively stable, fluctuating between 101 and 105 days for four consecutive quarters. This indicates a potential stabilization of payment practices.
- Recent Decrease (Q2 2024 - Q1 2025)
- A decrease in the average payables payment period is observed in the most recent quarters. The metric declined from 105 days in June 2024 to 98 days in March 2025. This suggests a potential improvement in the speed of settling supplier invoices.
The fluctuations observed in the average payables payment period may be attributable to various factors, including changes in supplier terms, the timing of invoice receipt, and the company’s cash management strategies. Further investigation would be required to determine the specific drivers behind these observed trends.
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Cash Conversion Cycle
Honeywell International Inc., cash conversion cycle calculation (quarterly data)
No. days
| 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 | 95 | 101 | 103 | 99 | 99 | 98 | 99 | 100 | 98 | 97 | 96 | 94 | 90 | 89 | 90 | 87 | |||||
| Average receivable collection period | 74 | 80 | 81 | 77 | 74 | 76 | 76 | 74 | 75 | 79 | 81 | 80 | 77 | 77 | 82 | 76 | |||||
| Average payables payment period | 98 | 104 | 105 | 101 | 105 | 103 | 101 | 102 | 109 | 104 | 105 | 104 | 103 | 99 | 101 | 100 | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Cash conversion cycle1 | 71 | 77 | 79 | 75 | 68 | 71 | 74 | 72 | 64 | 72 | 72 | 70 | 64 | 67 | 71 | 63 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 319 | 338 | 385 | 419 | 419 | 379 | 421 | 395 | 365 | 375 | 373 | 396 | 407 | 427 | 453 | 453 | |||||
| Caterpillar Inc. | 137 | 151 | 150 | 149 | 138 | 139 | 139 | 132 | 127 | 135 | 135 | 133 | 124 | 134 | 135 | 133 | |||||
| Eaton Corp. plc | 84 | 93 | 96 | 90 | 81 | 86 | 84 | 84 | 79 | 83 | 85 | 85 | 81 | 82 | 83 | 80 | |||||
| GE Aerospace | 125 | 126 | 127 | 126 | 125 | 97 | 76 | 112 | 95 | 88 | 87 | 81 | 80 | 89 | 87 | 84 | |||||
| Lockheed Martin Corp. | 18 | 18 | 17 | 8 | 19 | 11 | 14 | 11 | 17 | 9 | 19 | 15 | 21 | 17 | 27 | 17 | |||||
| RTX Corp. | 48 | 50 | 58 | 52 | 49 | 56 | 65 | 65 | 64 | 66 | 63 | 63 | 55 | 61 | 61 | 62 | |||||
Based on: 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 Q4 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 95 + 74 – 98 = 71
2 Click competitor name to see calculations.
The short-term operating activity, as measured by the cash conversion cycle and its components, exhibits fluctuating trends over the observed period. Generally, the cycle length increased through much of 2023 before showing some signs of contraction in late 2023 and into 2025. A closer examination of the individual components reveals the drivers of these changes.
- Average Inventory Processing Period
- The average inventory processing period demonstrates a consistent upward trend from 87 days in March 2022 to 103 days in June 2025. This indicates a lengthening time required to convert raw materials into finished goods and ultimately sell them. While there are minor quarterly fluctuations, the overall trajectory points to increasing inefficiencies in inventory management or a shift towards holding higher levels of inventory. A slight decrease is observed in the final period, falling to 95 days in December 2025, but this does not reverse the overall trend.
- Average Receivable Collection Period
- The average receivable collection period shows more variability. It initially increased from 76 days in March 2022 to 82 days in June 2022, then generally decreased to 74 days by March 2024. A subsequent increase is noted, peaking at 81 days in June 2025, before decreasing again to 74 days in December 2025. This suggests fluctuations in the company’s credit policies or the payment behavior of its customers. The period remains relatively stable between 74 and 82 days for most of the observed timeframe.
- Average Payables Payment Period
- The average payables payment period generally increased from 100 days in March 2022 to 109 days in December 2022. It then decreased to 102 days in March 2024, followed by a slight increase to 105 days in December 2024. The period concludes with a decrease to 98 days in December 2025. This indicates a shifting strategy in managing payments to suppliers, potentially leveraging extended payment terms. The fluctuations suggest a dynamic relationship with suppliers and a responsiveness to cash flow needs.
- Cash Conversion Cycle
- The cash conversion cycle initially increased from 63 days in March 2022 to 79 days in June 2025, reflecting the combined effect of the trends in the component ratios. The cycle then decreased to 71 days in December 2025. The increase suggests a longer time elapsing between paying for inventory and collecting cash from sales. The slight decrease in the final period is likely attributable to the concurrent decrease in the receivable collection period and payables payment period, partially offsetting the continued increase in the inventory processing period. Overall, the cycle length remains relatively stable, fluctuating within a range of 64 to 79 days.
In summary, the lengthening inventory processing period is a key driver of the observed trends in the cash conversion cycle. While fluctuations in receivables and payables provide some offsetting effects, the increasing time to process inventory warrants further investigation to identify potential operational improvements.
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