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Honeywell International (MIL:1HON) Operating Margin % : 20.38% (As of Sep. 2024)


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What is Honeywell International Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Honeywell International's Operating Income for the three months ended in Sep. 2024 was €1,787 Mil. Honeywell International's Revenue for the three months ended in Sep. 2024 was €8,765 Mil. Therefore, Honeywell International's Operating Margin % for the quarter that ended in Sep. 2024 was 20.38%.

Good Sign:

Honeywell International Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Honeywell International's Operating Margin % or its related term are showing as below:

MIL:1HON' s Operating Margin % Range Over the Past 10 Years
Min: 14.47   Med: 17.58   Max: 19.56
Current: 19.56


MIL:1HON's Operating Margin % is ranked better than
88.45% of 528 companies
in the Conglomerates industry
Industry Median: 5.38 vs MIL:1HON: 19.56

Honeywell International's 5-Year Average Operating Margin % Growth Rate was 2.50% per year.

Honeywell International's Operating Income for the three months ended in Sep. 2024 was €1,787 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was €6,787 Mil.


Honeywell International Operating Margin % Historical Data

The historical data trend for Honeywell International's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Honeywell International Operating Margin % Chart

Honeywell International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.66 17.45 18.03 18.12 19.32

Honeywell International Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.91 16.77 20.43 20.65 20.38

Competitive Comparison of Honeywell International's Operating Margin %

For the Conglomerates subindustry, Honeywell International's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Honeywell International's Operating Margin % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Honeywell International's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Honeywell International's Operating Margin % falls into.



Honeywell International Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Honeywell International's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=6496.028 / 33619.054
=19.32 %

Honeywell International's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=1786.683 / 8764.928
=20.38 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Honeywell International  (MIL:1HON) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Honeywell International Operating Margin % Related Terms

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Honeywell International Business Description

Address
855 South Mint Street, Charlotte, NC, USA, 28202
Honeywell traces its roots to 1885 with Albert Butz's firm, Butz Thermo-Electric Regulator, which produced a predecessor to the modern thermostat. Other inventions by Honeywell include biodegradable detergent and autopilot. Today, Honeywell is a global multi-industry behemoth with one of the largest installed bases of equipment. It operates through four business segments: aerospace technologies (37% of 2023 company revenue), industrial automation (29%), energy and sustainability solutions (17%), and building automation (17%). Recently, Honeywell has made several portfolio changes to focus on fewer end markets and align with a set of secular growth trends. The firm is working diligently to expand its installed base, deriving around 30% of its revenue from recurring aftermarket services.

Honeywell International Headlines

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