Business Analysis of Honeywell International

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Honeywell International

HONEYWELL INTERNATIONAL

Business Overview

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. It operates through four segments: Aerospace; Home and Building Technologies; Performance Materials and Technologies; and Safety and Productivity Solutions. The Aerospace segment supplies products, software, and services for aircraft and vehicles that it sells to original equipment manufacturers and other customers in various markets, including air transport, regional, business and general aviation aircraft, airlines, aircraft operators, defense and space contractors, and automotive and truck manufacturers. The Home and Building Technologies segment provides products, software, solutions, and technologies that help homes owners, commercial building owners, and occupants, as well as electricity, gas, and water providers. The Performance Materials and Technologies segment develops and manufactures advanced materials, process technologies, and automation solutions. The Safety and Productivity Solutions segment provides products, software, and connected solutions to customers that enhance productivity, workplace safety, and asset performance. The company was founded in 1920 and is based in Morris Plains, New Jersey.

Honeywell International

Honeywell International


R&P Rank: 68
Sector: Industrial Goods & Services
Industry:Industrial Conglomerates
H.Q Location:New Jersey
Website: www.honeywell.com
Company Address:
115 TABOR ROAD, MORRIS PLAINS NJ 07950
Ph:973-455-2000

Business Analysis of Honeywell International

The Industrial Goods & Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Honeywell International compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Honeywell International to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Honeywell International with an interactive chart.

  1. Revenue Growth: Honeywell International reported a revenue growth of 1.9% year-on-year during 2016. Industrial Conglomerates Industry grew at 3.8% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Honeywell International spent 69.1% of its total revenues on COGS. Industrial Conglomerates industry average (COGS share of revenue) in the same period was 67.0%
  3. R&D share of Revenues: Honeywell International R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Honeywell International spent 13.9% of its total revenues on Sales, Marketing, and General Administration (SG&A). Industrial Conglomerates industry average SG&A spending in the same period was 16.9%
  5. Inventory share of Revenues: As a percentage of revenue, Honeywell International spent 11.1% of its total revenues on Inventories. Industrial Conglomerates industry average Inventory spending in the same period was 14.7%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Honeywell International invested 14.5% of its total revenues on Accounts Payable (A/P) Industrial Conglomerates industry average Accounts Payable investment in the same period was 12.8%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Honeywell International invested 22.4% of its total revenues on Accounts Receivable (A/R). Industrial Conglomerates industry average Accounts Receivable investment in the same period was 25.5%
  8. PP&E share of Revenues: As a percentage of revenue, Honeywell International invested 14.7% of its total revenues on Property, Plants, and Equipments (PP&E). Industrial Conglomerates industry average PPE investment in the same period was 34.0%
  9. Intangibles share of Revenues: As a percentage of revenue, Honeywell International invested 56.8% of its total revenues on Intangibles. Industrial Conglomerates industry average Intangibles investment in the same period was 71.2%
  10. Net Margins: Honeywell International Net Margins in the year 2016 were 12.2%. Industrial Conglomerates industry average Net Margins in the same period were 9.3%

Sector and Industry Association of Honeywell International

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Honeywell International is associated with Industrials Sector Group, Industrial Goods & Services Sector, and Industrial Conglomerates Industry.

Industrial Goods & Services sector is comprised of the following industries: Industrial Conglomerates; Industrial Machinery; Electrical Components & Equipment; Electronic Equipment & Parts; Containers & Packaging. The definitions for each of the industries is as follows:

  • Industrial Conglomerates industry includes Industrial companies engaged in three or more classes of business within the Industrial industry that differ substantially from each other.
  • Industrial Machinery industry includes designers, manufacturers, distributors and installers of industrial machinery and factory equipment, such as machine tools, lathes, presses and assembly line equipment. It also includes makers of pollution control equipment, castings, pressings, welded shapes, structural steelwork, compressors, pumps, bearings, elevators and escalators.
  • Electrical Components & Equipment industry consists of manufacturers and distributors of electrical parts for finished products, such as printed circuit boards for radios, televisions and other consumer electronics. It also includes makers of cables, wires, ceramics, transistors, electric adapters, fuel cells and security cameras. Manufacturers of Electric motors and generators and mechanical motion control products are also part of this industry.
  • Electronic Equipment & Parts industry includes companies offering Manufacturing and Design services for Engineered Components and Products used in different industries. Companies providing Laser-based manufacturing products are part of this industry.
  • Containers & Packaging industry includes producers and distributors of cardboard, bags, boxes, cans, drums, bottles, jars and glass used for packaging. Specialty Packaging Products and Pressure-Sensitive Materials producers are also part of this industry.

Industry Ranking of Honeywell International

With $39.3 billion revenues, Honeywell International ranked number 2 of all the companies in the US Industrial Conglomerates industry. There were a total of 10 public companies in the US Industrial Conglomerates industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Industrial Conglomerates industry by revenues during 2016 were:

  1. General Electric ($123.7 billion)
  2. Honeywell International ($39.3 billion)
  3. 3M ($30.1 billion)
  4. Danaher ($16.9 billion)
  5. Icahn Enterprises ($16.3 billion)
  6. Illinois Tool Works ($13.6 billion)
  7. Trinity Industries ($4.6 billion)
  8. Roper Technologies ($3.8 billion)
  9. Carlisle Companies ($3.7 billion)
  10. CSW Industrials ($319.8 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Honeywell Internationaland its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of honeywell-international

General Electric (GE) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

General Electric Co with $124 billion revenues in the year 2016 was the number 1 Industrial Conglomerates company. Read this report to know the top competitors of General Electric and identify growth and cost optimization opportunities of General Electric

3M (MMM) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

3M Co with $30 billion revenues in the year 2016 was the number 3 Industrial Conglomerates company. Read this report to know the top competitors of 3M and identify growth and cost optimization opportunities of 3M

Danaher (DHR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Danaher Corp with $17 billion revenues in the year 2016 was the number 4 Industrial Conglomerates company. Read this report to know the top competitors of Danaher and identify growth and cost optimization opportunities of Danaher

Icahn Enterprises (IEP) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Icahn Enterprises L.P. with $16 billion revenues in the year 2016 was the number 5 Industrial Conglomerates company. Read this report to know the top competitors of Icahn Enterprises and identify growth and cost optimization opportunities of Icahn Enterprises

Illinois Tool Works (ITW) Business Analysis – Analyze Historical Performance, Strategic...

Illinois Tool Works Inc with $14 billion revenues in the year 2016 was the number 6 Industrial Conglomerates company. Read this report to know the top competitors of Illinois Tool Works and identify growth and cost optimization opportunities of Illinois Tool Works

Trinity Industries (TRN) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Trinity Industries Inc with $5 billion revenues in the year 2016 was the number 7 Industrial Conglomerates company. Read this report to know the top competitors of Trinity Industries and identify growth and cost optimization opportunities of Trinity Industries

Revenues Analysis

Honeywell International (HON) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Honeywell International Inc (HON) from 2012 to 2016. Honeywell International generated a total of $39.3 billion revenues during 2016. Honeywell International reported a revenue growth of 1.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Honeywell International (HON) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Honeywell International Inc (HON) from 2002 to 2016. Honeywell International generated a total of $39.3 billion revenues during 2016. Honeywell International reported a revenue growth of 1.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Honeywell International (HON) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Honeywell International Inc (HON) revenue growth with Industrial Conglomerates industry growth during the last five years from 2012 to 2016. Honeywell International reported a revenue growth of 1.9% year-over-year during 2016. The Industrial Conglomerates industry growth was 3.8% year-over-year during 2016. Honeywell International growth was slower than the industry during 2016.

Profit Analysis