Financial Analysis: Honeywell International Inc.

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Part II: Financial Analysis Section 1: Business Analysis Honeywell International Inc. (see also, attached Excel spreadsheet) Honeywell International Inc. operates as a technology and manufacturing company all over the world. It is an American multinational company that produces a large variety of commercial and consumer products, as well as engineering and aerospace systems for major companies and international governments. It is a Fortune 100 company, and in 2012 was listed as number 77 in the Fortune 500 America ranking. Honeywell history can go back more than 125 years. The company was started in 1885 when an inventor named Albert Butz patented the furnace regulator and alarm, which later developed into what we now know as the modern thermostat. is “diversified industrials,” or “conglomerate.” Today Honeywell employs approximately 132,000 employees, with 58,000 of those being within the U.S. Honeywell raised Revenues $40.3 billion (2014), Operating income $ 6.755 billion, Net Income $ 4.239 billion (2014), Total assets $ 45.451 billion (2014), and Total equity $ 17.657 billion (2014). The company’s Growth Forecast EPS Growth Rate of next 3-5years is 9.5%. Honeywell’s website lists 13 officers on their “leadership” website: David M. Cote, Tim Mahoney, Roger Fradin, Terrence Hahn, Andreas Kramvis, Alex, Ismail, Katherin L. Adams, David J. Anderson, Rhonda Germany, Mark R. James, Shane Tedjarati, Krishna Mikkilineni, and Mike Honeywell’s PE ratio (19.07) is lower than the industry average and slightly worse than the S&P average (thus showing that their stock is trading a bit below market average. Honeywell’s relatively low P/E ratio indicates that investors can anticipate lower growth in the future (as is reflected in the analyst predictions mentioned earlier in this report. Price-To-Cash-Flow Ratio measures the expectations for the future financial health of the company. Honeywell’s Price-To-Cash-Flow ratio (16.9) is better than both the industry and the S&P, indicating that Honeywell has a better outlook than most companies evaluated by the S&P database. This is probably a very important metric for investors to consider and makes Honeywell an attractive

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