Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Honeywell International Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
U.S. Federal	606)	176)	653)	415)	475)
U.S. State	88)	60)	124)	146)	79)
Non-U.S.	1,012)	1,098)	815)	886)	768)
Current tax expense	1,706)	1,334)	1,592)	1,447)	1,322)
U.S. Federal	(210)	27)	(176)	173)	234)
U.S. State	(25)	11)	(36)	37)	39)
Non-U.S.	2)	115)	32)	(32)	(448)
Deferred tax expense (benefit)	(233)	153)	(180)	178)	(175)
Tax expense	1,473)	1,487)	1,412)	1,625)	1,147)

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).

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Item	Description	The company
Current tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Honeywell International Inc. current tax expense decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Deferred tax expense (benefit)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Honeywell International Inc. deferred tax expense (benefit) increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Honeywell International Inc. tax expense increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Honeywell International Inc., effective income tax rate (EITR) reconciliation

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Taxes on non-U.S. earnings	-0.50%	-2.00%	-0.40%	-1.40%	-0.80%
U.S. state income taxes	0.90%	0.50%	1.40%	1.50%	1.30%
Reserves for tax contingencies	1.40%	3.40%	1.10%	2.20%	-2.60%
Employee stock compensation	-0.70%	-0.30%	-0.90%	-0.70%	-1.20%
Reduction of certain receivables	0.00%	0.00%	0.00%	0.00%	2.00%
Restructuring	-0.30%	0.00%	0.70%	-1.40%	0.00%
U.S. federal tax credits	-2.00%	-1.60%	-0.90%	-0.60%	0.00%
U.S. valuation allowance	0.90%	-0.10%	-0.20%	2.00%	0.10%
All other items, net	-0.30%	-0.10%	0.30%	-0.10%	-0.70%
Effective income tax rate	20.40%	20.80%	22.10%	22.50%	19.10%

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).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Honeywell International Inc. effective income tax rate decreased from 2022 to 2023 and from 2023 to 2024.

Honeywell International Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Postretirement benefits other than pensions	50)	55)	59)	77)	85)
Asbestos and environmental	373)	405)	545)	468)	508)
Capitalized research and development	947)	582)	—)	—)	—)
Employee compensation and benefits	143)	148)	142)	174)	180)
Lease liabilities	263)	258)	233)	242)	197)
Other accruals and reserves	396)	196)	363)	260)	110)
Net operating losses	618)	687)	695)	734)	779)
Capital loss carryover and outside basis differences	467)	385)	126)	151)	—)
Tax credit carryforwards and other attributes	269)	420)	163)	164)	219)
Gross deferred tax assets	3,526)	3,136)	2,326)	2,270)	2,078)
Valuation allowance	(1,253)	(1,292)	(812)	(857)	(766)
Deferred tax assets	2,273)	1,844)	1,514)	1,413)	1,312)
Deferred revenue	(244)	—)	—)	—)	—)
Pension	(1,485)	(1,132)	(1,088)	(948)	(548)
Property, plant and equipment	(371)	(441)	(233)	(464)	(437)
Right-of-use asset	(242)	(240)	(212)	(230)	(184)
Intangibles	(679)	(817)	(818)	(883)	(898)
Unremitted earnings of foreign subsidiaries	(516)	(542)	(517)	(426)	(398)
Other asset basis differences	(285)	(369)	(317)	(334)	(169)
Other	—)	(5)	(1)	(2)	(31)
Deferred tax liabilities	(3,822)	(3,546)	(3,186)	(3,287)	(2,665)
Net deferred tax asset (liability)	(1,549)	(1,702)	(1,672)	(1,874)	(1,353)

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).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Honeywell International Inc. gross deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Honeywell International Inc. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Honeywell International Inc. net deferred tax asset (liability) decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Honeywell International Inc., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
	Deferred tax assets	238)	392)	421)	489)	760)
	Deferred tax liabilities	1,787)	2,094)	2,093)	2,364)	2,113)

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).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Honeywell International Inc. deferred tax assets decreased from 2022 to 2023 and from 2023 to 2024.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Honeywell International Inc. deferred tax liabilities increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Honeywell International Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	75,196)	61,525)	62,275)	64,470)	64,586)
Less: Noncurrent deferred tax assets, net	238)	392)	421)	489)	760)
Total assets (adjusted)	74,958)	61,133)	61,854)	63,981)	63,826)
Adjustment to Total Liabilities
Total liabilities (as reported)	56,035)	45,084)	44,949)	45,221)	46,789)
Less: Noncurrent deferred tax liabilities, net	1,787)	2,094)	2,093)	2,364)	2,113)
Total liabilities (adjusted)	54,248)	42,990)	42,856)	42,857)	44,676)
Adjustment to Total Honeywell Shareowners’ Equity
Total Honeywell shareowners’ equity (as reported)	18,619)	15,856)	16,697)	18,569)	17,549)
Less: Net deferred tax assets (liabilities)	(1,549)	(1,702)	(1,672)	(1,874)	(1,353)
Total Honeywell shareowners’ equity (adjusted)	20,168)	17,558)	18,369)	20,443)	18,902)
Adjustment to Net Income Attributable To Honeywell
Net income attributable to Honeywell (as reported)	5,705)	5,658)	4,966)	5,542)	4,779)
Add: Deferred income tax expense (benefit)	(233)	153)	(180)	178)	(175)
Net income attributable to Honeywell (adjusted)	5,472)	5,811)	4,786)	5,720)	4,604)

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).

Honeywell International Inc., Financial Data: Reported vs. Adjusted

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Honeywell International Inc., adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	14.82%	15.43%	14.00%	16.11%	14.64%
Adjusted net profit margin	14.21%	15.85%	13.49%	16.63%	14.11%
Total Asset Turnover
Reported total asset turnover	0.51	0.60	0.57	0.53	0.51
Adjusted total asset turnover	0.51	0.60	0.57	0.54	0.51
Financial Leverage
Reported financial leverage	4.04	3.88	3.73	3.47	3.68
Adjusted financial leverage	3.72	3.48	3.37	3.13	3.38
Return on Equity (ROE)
Reported ROE	30.64%	35.68%	29.74%	29.85%	27.23%
Adjusted ROE	27.13%	33.10%	26.05%	27.98%	24.36%
Return on Assets (ROA)
Reported ROA	7.59%	9.20%	7.97%	8.60%	7.40%
Adjusted ROA	7.30%	9.51%	7.74%	8.94%	7.21%

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).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Honeywell International Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Honeywell International Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Honeywell International Inc. adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Honeywell International Inc. adjusted ROE improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Honeywell International Inc. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Honeywell International Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell	5,705)	5,658)	4,966)	5,542)	4,779)
Net sales	38,498)	36,662)	35,466)	34,392)	32,637)
Profitability Ratio
Net profit margin¹	14.82%	15.43%	14.00%	16.11%	14.64%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Honeywell	5,472)	5,811)	4,786)	5,720)	4,604)
Net sales	38,498)	36,662)	35,466)	34,392)	32,637)
Profitability Ratio
Adjusted net profit margin²	14.21%	15.85%	13.49%	16.63%	14.11%

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).

2024 Calculations

¹ Net profit margin = 100 × Net income attributable to Honeywell ÷ Net sales
= 100 × 5,705 ÷ 38,498 = 14.82%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Honeywell ÷ Net sales
= 100 × 5,472 ÷ 38,498 = 14.21%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Honeywell International Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net sales	38,498)	36,662)	35,466)	34,392)	32,637)
Total assets	75,196)	61,525)	62,275)	64,470)	64,586)
Activity Ratio
Total asset turnover¹	0.51	0.60	0.57	0.53	0.51
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	38,498)	36,662)	35,466)	34,392)	32,637)
Adjusted total assets	74,958)	61,133)	61,854)	63,981)	63,826)
Activity Ratio
Adjusted total asset turnover²	0.51	0.60	0.57	0.54	0.51

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).

2024 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 38,498 ÷ 75,196 = 0.51

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 38,498 ÷ 74,958 = 0.51

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Honeywell International Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	75,196)	61,525)	62,275)	64,470)	64,586)
Total Honeywell shareowners’ equity	18,619)	15,856)	16,697)	18,569)	17,549)
Solvency Ratio
Financial leverage¹	4.04	3.88	3.73	3.47	3.68
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	74,958)	61,133)	61,854)	63,981)	63,826)
Adjusted total Honeywell shareowners’ equity	20,168)	17,558)	18,369)	20,443)	18,902)
Solvency Ratio
Adjusted financial leverage²	3.72	3.48	3.37	3.13	3.38

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).

2024 Calculations

¹ Financial leverage = Total assets ÷ Total Honeywell shareowners’ equity
= 75,196 ÷ 18,619 = 4.04

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Honeywell shareowners’ equity
= 74,958 ÷ 20,168 = 3.72

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Honeywell International Inc. adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell	5,705)	5,658)	4,966)	5,542)	4,779)
Total Honeywell shareowners’ equity	18,619)	15,856)	16,697)	18,569)	17,549)
Profitability Ratio
ROE¹	30.64%	35.68%	29.74%	29.85%	27.23%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Honeywell	5,472)	5,811)	4,786)	5,720)	4,604)
Adjusted total Honeywell shareowners’ equity	20,168)	17,558)	18,369)	20,443)	18,902)
Profitability Ratio
Adjusted ROE²	27.13%	33.10%	26.05%	27.98%	24.36%

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).

2024 Calculations

¹ ROE = 100 × Net income attributable to Honeywell ÷ Total Honeywell shareowners’ equity
= 100 × 5,705 ÷ 18,619 = 30.64%

² Adjusted ROE = 100 × Adjusted net income attributable to Honeywell ÷ Adjusted total Honeywell shareowners’ equity
= 100 × 5,472 ÷ 20,168 = 27.13%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Honeywell International Inc. adjusted ROE improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Honeywell	5,705)	5,658)	4,966)	5,542)	4,779)
Total assets	75,196)	61,525)	62,275)	64,470)	64,586)
Profitability Ratio
ROA¹	7.59%	9.20%	7.97%	8.60%	7.40%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Honeywell	5,472)	5,811)	4,786)	5,720)	4,604)
Adjusted total assets	74,958)	61,133)	61,854)	63,981)	63,826)
Profitability Ratio
Adjusted ROA²	7.30%	9.51%	7.74%	8.94%	7.21%

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).

2024 Calculations

¹ ROA = 100 × Net income attributable to Honeywell ÷ Total assets
= 100 × 5,705 ÷ 75,196 = 7.59%

² Adjusted ROA = 100 × Adjusted net income attributable to Honeywell ÷ Adjusted total assets
= 100 × 5,472 ÷ 74,958 = 7.30%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Honeywell International Inc. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Honeywell International Inc. (NASDAQ:HON)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Honeywell International Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Honeywell International Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)