Analysis of Debt
Total Debt (Carrying Amount)
Honeywell International Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Commercial Paper and Other Short-Term Borrowings
- The commercial paper and other short-term borrowings decreased steadily from 3,597 million USD at the end of 2020 to 2,085 million USD by the end of 2023. However, there was a significant increase in 2024, rising sharply to 4,273 million USD, surpassing previous years within the period.
- Current Maturities of Long-Term Debt
- This category shows a declining trend over the five-year span, moving from 2,445 million USD in 2020 to 1,347 million USD in 2024. Although there was a minor increase in 2023 compared to 2022, the overall trajectory is downward, indicating a reduction in short-term portions of long-term liabilities due within the year.
- Long-Term Debt, Excluding Current Maturities
- The long-term debt experienced fluctuation but an overall upward trajectory. It decreased from 16,342 million USD in 2020 to 14,254 million USD in 2021. Subsequently, it rose to 15,123 million USD in 2022 and continued increasing to 16,562 million USD in 2023. The most notable change occurred in 2024, when the long-term debt surged sharply to 25,479 million USD, indicating substantial new long-term borrowing or debt refinancing extending beyond one year.
- Total Debt (Carrying Amount)
- Total debt followed a decreasing trend from 22,384 million USD in 2020 to 19,570 million USD in 2022, with a slight uptick to 20,443 million USD in 2023. In 2024, total debt increased markedly to 31,099 million USD, primarily driven by the sharp rise in both commercial paper and long-term debt components. This represents a significant expansion of the overall debt burden at the end of the period.
- Overall Analysis
- The data reveals a strategy involving a reduction in short-term borrowings and current maturities during the initial years, followed by a notable increase in both short-term borrowings and long-term debt in 2024. The substantial escalation in long-term debt suggests possible capital raising or refinancing activities. The spike in short-term borrowings in 2024 may indicate increased liquidity needs or shifting financing strategies. Overall, the company’s total debt remained relatively stable with a declining tendency through 2022 but increased considerably in 2024, reflecting a significant change in its debt structure and leverage profile.
Total Debt (Fair Value)
| Dec 31, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Commercial paper and other short-term borrowings | 4,273) |
| Long-term debt and related current maturities | 25,503) |
| Total debt (fair value) | 29,776) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.96 |
Based on: 10-K (reporting date: 2024-12-31).
Weighted-average Interest Rate on Debt
Weighted average interest rate on long-term debt: 3.75%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 1.35% | 1,250) | 17) | |
| 2.50% | 1,500) | 38) | |
| 1.10% | 1,000) | 11) | |
| 3.50% | 675) | 24) | |
| 4.65% | 1,150) | 53) | |
| 4.95% | 500) | 25) | |
| 2.25% | 779) | 18) | |
| 4.25% | 750) | 32) | |
| 2.70% | 750) | 20) | |
| 4.88% | 500) | 24) | |
| 4.70% | 1,000) | 47) | |
| 3.38% | 779) | 26) | |
| 1.95% | 1,000) | 20) | |
| 4.95% | 500) | 25) | |
| 1.75% | 1,500) | 26) | |
| 4.75% | 650) | 31) | |
| 0.75% | 519) | 4) | |
| 3.75% | 519) | 19) | |
| 5.00% | 1,100) | 55) | |
| 4.50% | 1,000) | 45) | |
| 4.13% | 1,039) | 43) | |
| 5.00% | 1,450) | 73) | |
| 3.75% | 779) | 29) | |
| 5.70% | 441) | 25) | |
| 5.70% | 462) | 26) | |
| 5.38% | 417) | 22) | |
| 3.81% | 442) | 17) | |
| 2.80% | 750) | 21) | |
| 5.25% | 1,750) | 92) | |
| 5.35% | 650) | 35) | |
| 4.37% | 1,000) | 44) | |
| 6.63% | 201) | 13) | |
| 9.07% | 51) | 5) | |
| 4.30% | 390) | 17) | |
| Total | 27,243) | 1,021) | |
| 3.75% | |||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 1,021 ÷ 27,243 = 3.75%