Stock Analysis on Net

Honeywell International Inc. (NASDAQ:HON)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Honeywell International Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Turnover Ratios
Inventory turnover 3.72 4.04 4.29 4.94 5.51
Receivables turnover 4.87 4.77 5.04 4.78 4.90
Payables turnover 3.36 3.53 3.40 3.86 4.25
Working capital turnover 7.39 7.03 5.86 3.64 5.92
Average No. Days
Average inventory processing period 98 90 85 74 66
Add: Average receivable collection period 75 77 72 76 75
Operating cycle 173 167 157 150 141
Less: Average payables payment period 109 103 107 95 86
Cash conversion cycle 64 64 50 55 55

Based on: 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), 10-K (reporting date: 2019-12-31).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Honeywell International Inc. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Receivables turnover An activity ratio equal to revenue divided by receivables. Honeywell International Inc. receivables turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Honeywell International Inc. payables turnover ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Honeywell International Inc. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Honeywell International Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Honeywell International Inc. number of days of receivables outstanding deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Honeywell International Inc. operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Honeywell International Inc. number of days of payables outstanding decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.

Inventory Turnover

Honeywell International Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cost of products and services sold 22,995 22,347 22,061 22,169 24,339
Inventories 6,178 5,538 5,138 4,489 4,421
Short-term Activity Ratio
Inventory turnover1 3.72 4.04 4.29 4.94 5.51
Benchmarks
Inventory Turnover, Competitors2
Boeing Co. 0.88 0.81 0.75 0.78 0.94
Caterpillar Inc. 2.58 2.54 2.53 2.55 3.25
Eaton Corp. plc 3.95 4.04 4.48 5.88 5.11
GE Aerospace 3.05 3.19 3.40 3.80 4.74
Lockheed Martin Corp. 18.87 18.68 19.45 16.01 14.22
RTX Corp. 4.83 5.03 5.65 5.11 5.21
Inventory Turnover, Sector
Capital Goods 2.30 2.28 2.28 2.28 2.61
Inventory Turnover, Industry
Industrials 3.89 3.99 3.87 3.61 3.94

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Inventory turnover = Cost of products and services sold ÷ Inventories
= 22,995 ÷ 6,178 = 3.72

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Honeywell International Inc. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Receivables Turnover

Honeywell International Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net sales 36,662 35,466 34,392 32,637 36,709
Accounts receivable, less allowances 7,530 7,440 6,830 6,827 7,493
Short-term Activity Ratio
Receivables turnover1 4.87 4.77 5.04 4.78 4.90
Benchmarks
Receivables Turnover, Competitors2
Boeing Co. 29.37 26.46 23.58 29.75 23.44
Caterpillar Inc. 6.86 6.39 5.68 5.33 5.92
Eaton Corp. plc 5.18 5.09 5.95 6.15 6.22
GE Aerospace 4.17 4.09 4.55 4.37 5.22
Lockheed Martin Corp. 31.69 26.34 34.15 33.06 25.59
RTX Corp. 6.36 7.36 6.66 6.11 5.70
Receivables Turnover, Sector
Capital Goods 7.68 7.36 7.57 7.30 7.40
Receivables Turnover, Industry
Industrials 8.14 7.80 7.60 7.49 7.67

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, less allowances
= 36,662 ÷ 7,530 = 4.87

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Honeywell International Inc. receivables turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Payables Turnover

Honeywell International Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cost of products and services sold 22,995 22,347 22,061 22,169 24,339
Accounts payable 6,849 6,329 6,484 5,750 5,730
Short-term Activity Ratio
Payables turnover1 3.36 3.53 3.40 3.86 4.25
Benchmarks
Payables Turnover, Competitors2
Boeing Co. 5.86 6.18 6.40 4.94 4.63
Caterpillar Inc. 5.41 4.76 4.36 4.75 6.15
Eaton Corp. plc 4.39 4.51 4.75 6.24 6.78
GE Aerospace 3.27 2.98 3.32 3.67 4.20
Lockheed Martin Corp. 25.56 27.25 74.34 64.48 40.16
RTX Corp. 5.31 5.40 5.93 5.56 5.28
Payables Turnover, Sector
Capital Goods 5.42 5.21 5.60 5.54 5.63
Payables Turnover, Industry
Industrials 7.74 7.58 7.74 7.44 7.40

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Payables turnover = Cost of products and services sold ÷ Accounts payable
= 22,995 ÷ 6,849 = 3.36

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Honeywell International Inc. payables turnover ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Working Capital Turnover

Honeywell International Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Current assets 23,502 24,982 25,372 28,175 24,303
Less: Current liabilities 18,539 19,938 19,508 19,197 18,098
Working capital 4,963 5,044 5,864 8,978 6,205
 
Net sales 36,662 35,466 34,392 32,637 36,709
Short-term Activity Ratio
Working capital turnover1 7.39 7.03 5.86 3.64 5.92
Benchmarks
Working Capital Turnover, Competitors2
Boeing Co. 5.78 3.42 2.34 1.69 15.57
Caterpillar Inc. 5.23 4.62 3.54 2.84 4.04
Eaton Corp. plc 5.91 8.70 65.65 5.42 5.95
GE Aerospace 7.24 7.93 4.94 2.26 7.03
Lockheed Martin Corp. 18.85 12.93 11.52 12.01 19.15
RTX Corp. 41.62 20.15 9.75 7.52 26.47
Working Capital Turnover, Sector
Capital Goods 8.26 6.79 5.01 3.24 8.95
Working Capital Turnover, Industry
Industrials 11.44 9.67 6.90 4.47 10.00

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Working capital turnover = Net sales ÷ Working capital
= 36,662 ÷ 4,963 = 7.39

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Honeywell International Inc. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Average Inventory Processing Period

Honeywell International Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Inventory turnover 3.72 4.04 4.29 4.94 5.51
Short-term Activity Ratio (no. days)
Average inventory processing period1 98 90 85 74 66
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Boeing Co. 415 452 486 467 388
Caterpillar Inc. 141 144 144 143 112
Eaton Corp. plc 92 90 82 62 71
GE Aerospace 120 114 107 96 77
Lockheed Martin Corp. 19 20 19 23 26
RTX Corp. 76 73 65 71 70
Average Inventory Processing Period, Sector
Capital Goods 159 160 160 160 140
Average Inventory Processing Period, Industry
Industrials 94 91 94 101 93

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.72 = 98

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Honeywell International Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Receivable Collection Period

Honeywell International Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Receivables turnover 4.87 4.77 5.04 4.78 4.90
Short-term Activity Ratio (no. days)
Average receivable collection period1 75 77 72 76 75
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Boeing Co. 12 14 15 12 16
Caterpillar Inc. 53 57 64 68 62
Eaton Corp. plc 70 72 61 59 59
GE Aerospace 87 89 80 83 70
Lockheed Martin Corp. 12 14 11 11 14
RTX Corp. 57 50 55 60 64
Average Receivable Collection Period, Sector
Capital Goods 48 50 48 50 49
Average Receivable Collection Period, Industry
Industrials 45 47 48 49 48

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.87 = 75

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Honeywell International Inc. number of days of receivables outstanding deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Operating Cycle

Honeywell International Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 98 90 85 74 66
Average receivable collection period 75 77 72 76 75
Short-term Activity Ratio
Operating cycle1 173 167 157 150 141
Benchmarks
Operating Cycle, Competitors2
Boeing Co. 427 466 501 479 404
Caterpillar Inc. 194 201 208 211 174
Eaton Corp. plc 162 162 143 121 130
GE Aerospace 207 203 187 179 147
Lockheed Martin Corp. 31 34 30 34 40
RTX Corp. 133 123 120 131 134
Operating Cycle, Sector
Capital Goods 207 210 208 210 189
Operating Cycle, Industry
Industrials 139 138 142 150 141

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 98 + 75 = 173

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Honeywell International Inc. operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Payables Payment Period

Honeywell International Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Payables turnover 3.36 3.53 3.40 3.86 4.25
Short-term Activity Ratio (no. days)
Average payables payment period1 109 103 107 95 86
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Boeing Co. 62 59 57 74 79
Caterpillar Inc. 67 77 84 77 59
Eaton Corp. plc 83 81 77 58 54
GE Aerospace 112 123 110 100 87
Lockheed Martin Corp. 14 13 5 6 9
RTX Corp. 69 68 62 66 69
Average Payables Payment Period, Sector
Capital Goods 67 70 65 66 65
Average Payables Payment Period, Industry
Industrials 47 48 47 49 49

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.36 = 109

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Honeywell International Inc. number of days of payables outstanding decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Cash Conversion Cycle

Honeywell International Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 98 90 85 74 66
Average receivable collection period 75 77 72 76 75
Average payables payment period 109 103 107 95 86
Short-term Activity Ratio
Cash conversion cycle1 64 64 50 55 55
Benchmarks
Cash Conversion Cycle, Competitors2
Boeing Co. 365 407 444 405 325
Caterpillar Inc. 127 124 124 134 115
Eaton Corp. plc 79 81 66 63 76
GE Aerospace 95 80 77 79 60
Lockheed Martin Corp. 17 21 25 28 31
RTX Corp. 64 55 58 65 65
Cash Conversion Cycle, Sector
Capital Goods 140 140 143 144 124
Cash Conversion Cycle, Industry
Industrials 92 90 95 101 92

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 98 + 75109 = 64

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.