Honeywell International Return On Asset vs. Debt To Equity
| HONB34 Stock | BRL 1,397 2.09 0.15% |
For Honeywell International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Honeywell International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Honeywell International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Honeywell International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Honeywell International over time as well as its relative position and ranking within its peers.
Honeywell |
Honeywell International Debt To Equity vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Honeywell International's current stock value. Our valuation model uses many indicators to compare Honeywell International value to that of its competitors to determine the firm's financial worth. Honeywell International is one of the top stocks in return on asset category among its peers. It also is one of the top stocks in debt to equity category among its peers fabricating about 17.60 of Debt To Equity per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Honeywell International by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Honeywell International's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Honeywell Debt To Equity vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Honeywell International |
| = | 0.0697 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Honeywell International |
| = | 1.23 % |
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
Honeywell Debt To Equity Comparison
Honeywell International is currently under evaluation in debt to equity category among its peers.
Honeywell International Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Honeywell International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Honeywell International will eventually generate negative long term returns. The profitability progress is the general direction of Honeywell International's change in net profit over the period of time. It can combine multiple indicators of Honeywell International, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. The company was incorporated in 1985 and is headquartered in Charlotte, North Carolina. HONEYWELL DRN operates under Specialty Industrial Machinery classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 103000 people.
Honeywell Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Honeywell International. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Honeywell International position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Honeywell International's important profitability drivers and their relationship over time.
Use Honeywell International in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Honeywell International position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Honeywell International will appreciate offsetting losses from the drop in the long position's value.Honeywell International Pair Trading
Honeywell International Pair Trading Analysis
The ability to find closely correlated positions to Honeywell International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Honeywell International when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Honeywell International - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Honeywell International to buy it.
The correlation of Honeywell International is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Honeywell International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Honeywell International moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Honeywell International can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Honeywell International position
In addition to having Honeywell International in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in Honeywell Stock
When determining whether Honeywell International offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Honeywell International's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Honeywell International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Honeywell International Stock:Check out Risk vs Return Analysis. For information on how to trade Honeywell Stock refer to our How to Trade Honeywell Stock guide.You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
To fully project Honeywell International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Honeywell International at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Honeywell International's income statement, its balance sheet, and the statement of cash flows.