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Honeywell AerospaceFRA:AW8 -0.15%26 Return-on-Tangible-Asset is 13.94% as of Dec. 2025, which is 28% below its 10-year median of 19.42. GuruFocus rates FRA:AW8 with a GF Score™ of 26/100. The stock has 1 warning sign investors should review. Among 360 Aerospace & Defense companies, Honeywell Aerospace ranks better than 91.67% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Honeywell Aerospace's annualizedNet Income for the quarter that ended in Dec. 2025 was €1,520 Mil. Honeywell Aerospace's average total tangible assets for the quarter that ended in Dec. 2025 was €10,908 Mil. Therefore, Honeywell Aerospace's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 13.94%.
The historical rank and industry rank for Honeywell Aerospace's Return-on-Tangible-Asset or its related term are showing as below:
FRA:AW8'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 14.73 Med: 19.42 Max: 24.11
Current: 14.73
During the past 3 years, Honeywell Aerospace's highest Return-on-Tangible-Asset was 24.11%. The lowest was 14.73%. And the median was 19.42%.
FRA:AW8's Return-on-Tangible-Asset is ranked better than 91.67% of 360
companies
in the Aerospace & Defense industry
Industry Median: 3.055
vs FRA:AW8: 14.73
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Honeywell Aerospace Return-on-Tangible-Asset Related Terms
Honeywell Aerospace Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Honeywell Aerospace's Return-on-Tangible-Asset 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.
FRA:AW8 vs TDG, LHX, NOC: Return-on-Tangible-Asset Comparison
For the Aerospace & Defense subindustry, Honeywell Aerospace's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Aerospace Return-on-Tangible-Asset vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Honeywell Aerospace's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Honeywell Aerospace's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is one times the annual (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 13.94% mean?
Honeywell Aerospace (FRA:AW8) has a Return-on-Tangible-Asset of 13.94% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Honeywell Aerospace and its competitors. This is 28% below median its historical median of 19.42. Over the past decade, Honeywell Aerospace's Return-on-Tangible-Asset has ranged from 14.73 to 24.11. According to the industry distribution chart, Honeywell Aerospace ranks #30 out of 360 companies in the Aerospace & Defense industry, placing it in the top 8.3%.
Is Honeywell Aerospace's Return-on-Tangible-Asset too high?
Honeywell Aerospace's current Return-on-Tangible-Asset of 13.94% is 28% below median its 10-year median of 19.42. Over the past 10 years, this metric has ranged from a low of 14.73 to a high of 24.11. The Aerospace & Defense industry median Return-on-Tangible-Asset is 3.06. Honeywell Aerospace's value of 13.94% is 356.3% above this industry median. Based on the distribution chart, Honeywell Aerospace ranks #30 out of 360 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Honeywell Aerospace has a GF Score™ of 26/100, reflecting its overall financial health beyond just this single metric.
How does Honeywell Aerospace's Return-on-Tangible-Asset compare to TDG and LHX?
According to the Aerospace & Defense industry distribution chart, Honeywell Aerospace ranks #30 out of 360 companies for Return-on-Tangible-Asset. This places Honeywell Aerospace in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.06. Honeywell Aerospace's value of 13.94% is 356.3% above this benchmark. Historically, Honeywell Aerospace's own Return-on-Tangible-Asset has ranged from 14.73 to 24.11 over the past decade. While the company's 10-year median is 19.42 vs. the industry median of 3.06, Honeywell Aerospace has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Aerospace & Defense company?
The median Return-on-Tangible-Asset among Aerospace & Defense companies is 3.06, based on 360 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Honeywell Aerospace's current Return-on-Tangible-Asset of 13.94% is 356.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Honeywell Aerospace and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Asset is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honeywell Aerospace's current Return-on-Tangible-Asset is 13.94%, which is 28% below median its own 10-year median of 19.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honeywell Aerospace stock overvalued right now?
Honeywell Aerospace (FRA:AW8) has a current Return-on-Tangible-Asset of 13.94%. The current Return-on-Tangible-Asset is 13.94%, which is 28% below median its 10-year median of 19.42 and 356.3% above the Aerospace & Defense industry median of 3.06. Honeywell Aerospace's overall GF Score™ is 26/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Honeywell Aerospace (FRA:AW8), the current Return-on-Tangible-Asset is 13.94% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Honeywell Aerospace Inc operates as an aerospace and defense supplier of systems and technologies that enable the production, maintenance, and safe operation of aerospace and defense platforms. Its products support original equipment manufacturer (OEM), government, defense prime contractor, and aircraft operator customers across the Commercial Air Transport, Business Aviation, and Defense and Space end markets. The company has three operating segments: Electronic Solutions (ES), Engines & Power Systems (E&PS), and Control Systems (CS ). The majority of revenue is derived from the Electronic Solutions segment, which offers Avionics, Navigation and Sensors, Electromagnetic Defensive Solutions, and Space systems. Geographically, the maximum revenue is generated from the United States.
26GF Score
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