Honeywell International Inc. — Earnings Quality Grade F
HON · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 74 days, change -2 days YoY
AR growth 5.2% vs revenue growth 7.8%
Revenue 7.8%, CFFO 5.1%. Cash follows revenue
Expense Quality
Inventory 4.7% vs COGS 10.5%. Normal
CapEx growth 13.2% vs revenue 7.8%. Normal
SG&A/Gross Profit = 39.4%. Normal
Gross margin 36.9%, change -1.5pp. Stable
Cash Flow Quality
CFFO/NI = 1.36. Profits backed by cash
FCF $5.4B, FCF/NI = 1.15
Accruals ratio = -2.3%. Low accruals
Cash $12.9B covers only 36% of debt $35.6B
Balance Sheet Health
Goodwill+Intangibles $27.8B = 200% of equity. Over 50%
Debt/EBITDA = 4.3x (>4x). Financial stress
Other assets -32.6% vs revenue 7.8%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 1% YoY. Normal
Manipulation Score
M-Score = -2.59 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08