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HON (Honeywell International) Beneish M-Score : -2.59 (As of Oct. 31, 2024)


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What is Honeywell International Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Honeywell International's Beneish M-Score or its related term are showing as below:

HON' s Beneish M-Score Range Over the Past 10 Years
Min: -2.92   Med: -2.63   Max: -2.35
Current: -2.59

During the past 13 years, the highest Beneish M-Score of Honeywell International was -2.35. The lowest was -2.92. And the median was -2.63.


Honeywell International Beneish M-Score Historical Data

The historical data trend for Honeywell International's Beneish M-Score 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 Beneish M-Score Chart

Honeywell International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.64 -2.71 -2.62 -2.50 -2.47

Honeywell International Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score 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 -2.37 -2.47 -2.67 -2.59 -2.59

Competitive Comparison of Honeywell International's Beneish M-Score

For the Conglomerates subindustry, Honeywell International's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Honeywell International's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Honeywell International's Beneish M-Score falls into.



Honeywell International Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Honeywell International for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9682+0.528 * 1.0114+0.404 * 1.0142+0.892 * 1.0396+0.115 * 0.9921
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0143+4.679 * -0.019363-0.327 * 1.1183
=-2.59

* 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.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $7,884 Mil.
Revenue was 9728 + 9577 + 9105 + 9440 = $37,850 Mil.
Gross Profit was 3749 + 3721 + 3522 + 3239 = $14,231 Mil.
Total Current Assets was $28,164 Mil.
Total Assets was $73,492 Mil.
Property, Plant and Equipment(Net PPE) was $5,822 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,258 Mil.
Selling, General, & Admin. Expense(SGA) was $5,357 Mil.
Total Current Liabilities was $19,534 Mil.
Long-Term Debt & Capital Lease Obligation was $25,934 Mil.
Net Income was 1413 + 1544 + 1463 + 1263 = $5,683 Mil.
Non Operating Income was 28 + 136 + 126 + 45 = $335 Mil.
Cash Flow from Operations was 1997 + 1371 + 448 + 2955 = $6,771 Mil.
Total Receivables was $7,833 Mil.
Revenue was 9212 + 9146 + 8864 + 9186 = $36,408 Mil.
Gross Profit was 3542 + 3520 + 3366 + 3417 = $13,845 Mil.
Total Current Assets was $23,320 Mil.
Total Assets was $61,296 Mil.
Property, Plant and Equipment(Net PPE) was $5,486 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,174 Mil.
Selling, General, & Admin. Expense(SGA) was $5,080 Mil.
Total Current Liabilities was $17,227 Mil.
Long-Term Debt & Capital Lease Obligation was $16,683 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(7884 / 37850) / (7833 / 36408)
=0.208296 / 0.215145
=0.9682

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(13845 / 36408) / (14231 / 37850)
=0.380274 / 0.375984
=1.0114

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (28164 + 5822) / 73492) / (1 - (23320 + 5486) / 61296)
=0.537555 / 0.530051
=1.0142

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=37850 / 36408
=1.0396

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(1174 / (1174 + 5486)) / (1258 / (1258 + 5822))
=0.176276 / 0.177684
=0.9921

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(5357 / 37850) / (5080 / 36408)
=0.141532 / 0.13953
=1.0143

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((25934 + 19534) / 73492) / ((16683 + 17227) / 61296)
=0.61868 / 0.553217
=1.1183

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(5683 - 335 - 6771) / 73492
=-0.019363

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Honeywell International has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.


Honeywell International Beneish M-Score 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 30% of its revenue from recurring aftermarket services.
Executives
Darius Adamczyk officer: President and CEO, PMT 855 S. MINT STREET, CHARLOTTE NC 28202
James E Currier officer: President & CEO, Aerospace 855 S. MINT STREET, CHARLOTTE NC 28202
Vimal Kapur officer: President & CEO, HBT C/O HONEYWELL 300 S. TRYON STREET, CHARLOTTE NC 07950
Billal Hammoud officer: President & CEO, HBT 855 S. MINT STREET, CHARLOTTE NC 28202
George Koutsaftes officer: President and CEO, SPS 855 S. MINT STREET, CHARLOTTE NC 28202
Karen Mattimore officer: SrVP, HR and Communications 300 SOUTH TRYON STR, CHARLOTTE NC 28202
Lucian Boldea officer: President and CEO, PMT 855 S. MINT STREET, CHARLOTTE NC 28202
Robin Watson director 855 S. MINT STREET, CHARLOTTE NC 28202
Gregory P Lewis officer: SVP & Chief Financial Officer C/O HONEYWELL INTERNATIONAL INC., 300 SOUTH TRYON STREET, CHARLOTTE NC 28202
Kevin Dehoff officer: President and CEO, HCE 855 S. MINT STREET, CHARLOTTE NC 28202
Rose Lee director C/O CROWN HOLDINGS, INC., 770 TOWNSHIP LINE ROAD, YARDLEY PA 19067
Que Dallara officer: Pres/CEO -Connected Enterprise C/O HONEYWELL 300 S. TRYON STREET, CHARLOTTE NC 28202
Doug Wright officer: President & CEO, HBT 855 S. MINT STREET, CHARLOTTE NC 28202
D Scott Davis director 115 TABOR ROAD, MORRIS PLAINS NJ 07950
Rajeev Gautam officer: Pres. and CEO, PMT C/O HONEYWELL, 300 S. TRYON STREET, CHARLOTTE NC 28202