HONCAUTIOUS

HON Return on Equity (ROE) Analysis

46.6%

Updated 201h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures net income as a percentage of shareholders’ equity, so HON’s 46.6% means it earns $0.47 for each dollar of investor capital.

Sector Performance

92th percentile

HON

46.6%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

24.3%(Jul 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures net income as a percentage of shareholders’ equity, so HON’s 46.6% means it earns $0.47 for each dollar of investor capital.

That is well above the sector median of 13.8%, placing the company in the 90th percentile among sector peers. The trend direction for the last 8 quarters is not available, and the year-over-year change is not available; the quarter-over-quarter change is +91.8%, rising from 24.3% to 46.6% in the most recent period. This high ROE suggests strong current profit efficiency, but the sudden jump could stem from temporary gains or a reduced equity base, adding uncertainty. Because the historical track record is limited and the spike is sharp, the metric does not contradict the overall CAUTIOUS verdict; it supports caution by raising doubts about sustainability.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about HON?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are HON's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.