HON Quick Ratio Analysis

The quick ratio measures a company’s ability to cover short-term liabilities with its most liquid assets, excluding inventory; at 0.74x, HON has $0.74 of liquid assets for every $1 of current debt.

This sits just above the sector median of 0.72x, placing HON at the 52nd percentile, meaning it is roughly in line with half of its peers. The trend data is limited: the year-over-year change is N/A, and the quarter-over-quarter change is -18.7%, dropping from 0.91x to 0.74x. A ratio near the sector median with a sharp recent decline suggests near-term liquidity has weakened, though it remains within a common peer range. The drop in liquidity raises the risk of tighter cash headroom, but the current level is not an outlier relative to the sector. This metric supports the overall CAUTIOUS verdict, as the declining trend adds a cautionary signal even if the absolute level is not alarming.

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