Figure No	Name of the Figure	Page No
Figure 1	Income Statement of Honeywell as on December 31, 2013	5
Figure 2	Balance Sheet of Honeywell as on December 31, 2013	7
Figure 3	Cash Flow Statement of Honeywell as on December 31, 2013	9
Figure 4	Owner’s Equity Statement of Honeywell as on December 31, 2013	10
Figure 5	Comparative Analysis with Industry, in 2013	17
Figure 6	Comparative Analysis with major competitor, in 2013	18
Figure 7	Key Statistics in 2013	20

List of Charts

Chart No	Title of the Chart	Page No
Chart 1	Liquidity Position of Honeywell for the last five years	12
Chart 2	Long term debt paying ability of Honeywell for the last five years	13
Chart 3	Profitability of Honeywell for the last five years	14
Chart 4	Asset Utilization ratio of Honeywell for the last five years	15
Chart 5	Market measures of Honeywell for the last five years	16
Chart 6	Forecasted future price of Honeywell	21

Synopsis of the two companies

Honeywell International, Inc.

Honeywell International, Inc. is a multinational conglomerate company based on USA. It produces variety of products which include aerospace systems, engineering products and services. Its consumers are from individual customers to various large corporations and also governments. Honeywell was listed in Dow Jones Industrial Average Index from December 7, 1925, until February 9, 2008. It’s headquarter is located in Morristown, New Jersey. The workforce of Honeywell includes 130,000 employees and 58,000 of whom are employed in the United States. It is a Fortune 100 company. In 2012 it became listed in the fortune 500 America’s ranking. The current CEO of Honeywell is chief executive officer is David M. Cote. Honeywell was founded by Mark C. Honeywell in 1906 in Wabash, Indiana as Honeywell Heating Specialty Co., Inc. In 1927 it merged with Minneapolis Heat Regulator Company. The major products of Honeywell is Aerospace which includes environmental control systems, Electric Power systems, Engine systems accessories, Avionics, displays, flight guidance and flight management systems, Radios, radar, navigation communication, data link safety systems, Aircraft lighting, Inertial sensor, Control products, Space products and subsystems, Management and technical services etc. It also provides Performance Materials and Technologies and Transportation Systems. It covers the U.S., Mexico, Canada, Brazil, China, India, Australia, Malaysia, Europe, Middle East and Africa (Honeywell, 2014).

The Boeing Company

The Boeing Company is a multinational company based on USA. It produces variety of products which include aerospace systems, engineering products and services. Its consumers are from individual customers to various large corporations and also governments. It is listed in Dow Jones Industrial Average Index. Its head quarter is located in Chicago. It [produces fixed-wing aircraft, rotorcraft, rockets and satellites. It also offers leasing and product support services. James McNerney is the chairman and CEO of Boeing (Boeing, 2014).

Summary of Latest Financial Statement

Honeywell’s Income statement shows the net income of Honeywell. It is the net balance of all the revenue and expense items. Honeywell’s gross profit for the year of 2014 is $10,691 million that is 27.37% of the Total Revenue. It incurs $5198 million as total operating expense for the same year. Total operating expense includes Research and development costs, selling, general and administrative expenses and non-recurring expenses. After deducting total operating expenses from Gross Profit, we get Total Operating Income that is $5,493 million. It is 14.06% of the Total Revenue. After adding the other income, we get Earnings before Interest and taxes, which is $5,739 million. EBIT is 53.68% of Total Revenue. Honeywell incurs interest expense of $327 million and paid income tax of $1,450 million. After deducting the expenses from the EBIT, we get the Net Income to Common shares, which is $3,962million.Net Income is 10.14% of Total Revenue. The following table shows the income statement for the period from 01 January 2013 to 31 December 2013of Honeywell International Incorporation:

Figure 1: Income Statement of Honeywell as on December 31, 2013

Income Statement (USD $ in millions)	Honeywell
Period Ending	Dec 31, 2013
Total Revenue	39,055
Cost of Revenue	28,364
Gross Profit	10,691
Research Development	-
Selling General and Administrative	5,190
Non Recurring	8
Total Operating Expenses	5,198
Operating Income or Loss	5,493
Total Other Income/Expenses Net	246
Earnings Before Interest And Taxes	5,739
Interest Expense	327
Income Before Tax	5,412
Income Tax Expense	1,450
Net Income	3,962
Net Income To Common Shares	3,962

Source: (Honeywell, Annual Report, 2013)

A Balance sheet resembles the status of the company’s financial and capital composition. Honeywell has current assets of $21,164 million as of 31st December, 2013. The items under current assets are cash & cash equivalents assets, short-term investments, net receivables, inventory and other current assets. Total assets of this company are $45,435 million as of 31st December 2013. Long-term asset consists of $393 million of long-term investments, $5,278 million of PPP, $13,046 million of goodwill, $2,514 million of Intangible assets and $3,040 million of other assets. Honeywell has $14,181 million of current liabilities as of 31st December 2013. It comprises of $5,174 of Accounts payable, $2,028 million of current portion of long-term debt and $6,979 million of other liabilities. Honeywell has the stockholders equity of $17,467 million. Retained earnings are of $20,383 million. The organization has common stock of $958 million.

The following table shows the balance sheet of Honeywell International Incorporation as of December 31, 2013:

Figure 2: Balance Sheet of Honeywell as on December 31, 2013

Balance Sheet (USD $ in millions)	Honeywell
Period Ending	Dec 31, 2013
Cash And Cash Equivalents	6,422
Short Term Investments	1,671
Net Receivables	7,909
Inventory	4,293
Other Current Assets	869
Total Current Assets	21,164
Long Term Investments	393
Property Plant and Equipment	5,278
Goodwill	13,046
Intangible Assets	2,514
Other Assets	3,040
Deferred Long Term Asset Charges	-
Total Assets	45,435
Accounts Payable	5,174
Short/Current Long Term Debt	2,028
Other Current Liabilities	6,979
Total Current Liabilities	14,181
Long Term Debt	6,801
Other Liabilities	6,182
Deferred Long Term Liability Charges	804
Total Liabilities	27,968
Stockholders' Equity
Common Stock	958
Retained Earnings	20,383
Other Stockholder Equity	(3,874)
Total Stockholder Equity	17,467

Source: Form 10-k of Honeywell International Incorporation

Honeywell’s Cash flow statement represents the net cash position and net changes in cash flow as of 31 July 2014. Honeywell’s Cash flow statement shows the total cash flow from operating activities is $4,335 million, total cash flow from investing activities is $(1,959) million and total cash flow from financing activities is $(433) million. The exchange rate effect is amounted to $(155) million. The following table shows the cash flow statement of Honeywell as of 31 December 2013:

Figure 3: Cash Flow Statement of Honeywell as on December 31, 2013

Cash Flow (USD $ in millions)	Honeywell
Period Ending	Dec 31, 2013
Net Income	3,962
Depreciation	989
Total Cash Flow From Operating Activities	4,335
Capital Expenditures	(947)
Investments	(1,012)
Total Cash Flows From Investing Activities	(1,959)
Dividends Paid	(1,353)
Total Cash Flows From Financing Activities	(433)
Effect Of Exchange Rate Changes	(155)
Change In Cash and Cash Equivalents	1,788

Source: Form 10-k of Honeywell International Incorporation

In the Honeywell’s statement of owner’s equity the ending balance of common stock is $5,640 million. The beginning balance of retained earnings is $17,799 million, comprehensive Net Income is $3,924 million and ending balance of Retained Earnings is $20,383 million. The total stockholder’s equity is $17,579 million that also includes the changes caused by treasury stock, accumulated other comprehensive loss and non-controlling interest. The following table represents the changes in common stock and retained earnings of the company for the period 2012 to 2013:

Figure 4: Owner’s Equity Statement of Honeywell as on December 31, 2013

Owner's Equity Statement (USD $ in millions)	Honeywell
Common stock and paid-in capital
Common Stock	958
Additional Paid-in Capital	4,682
Balance, end of period	5,640
Retained earnings (deficit)
Balance, beginning of period	17,799
Comprehensive Net income	3,924
Others	(1,340)
Balance, end of period	20,383
Treasury Stock	-9374

Accumulated Other Comprehensive Loss	818
Non-controlling Interest	112
Total stockholders’ equity	17,579

Source: (Honeywell, Annual Report, 2013)

Ratio Analysis

In this section the current ratio, cash ratio and quick ratio of Honeywell for the last five years have been calculated. Current ratio determines the firm’s capability to pay its short-term obligations with existing short-term assets (Horrigan, 1978). It is calculated by dividing total current assets by total current liabilities. The current ratio of Honeywell in December 2013, December 2012, December 2011, December 2010 and December 2009 is 1.5, 1.3, 1.3, 1.3 and 1.3 respectively. Quick ratio determines the firm’s capability to pay its short-term obligations with existing assets that are more liquid compared to that of current ratio. The denominator of quick ratio is summation of cash & cash equivalents with short term investment and account receivables and the numerator is current liabilities. The quick ratio of Honeywell in December 2013, December 2012, December 2011, December 2010 and December 2009 is 1.1, 1.0, 0.9, 0.8 and 0.8 respectively. The cash ratio determines how quickly the company can meet its obligations. The denominator of Cash ratio is summation of cash & cash equivalents and short term investment and the numerator is total current liabilities. The Cash ratio of Honeywell in December 2013, December 2012, December 2011, December 2010 and December 2009 is 0.6, 0.4, 0.3, 0.3 and 0.3respectively.We can conclude from these ratios that Honeywell’s capability to meet its obligations are not up to the mark. But, as the ratios are in an increasing trend we can expect that it will reach to a satisfactory level of ability to pay short-term liability. The trend of its liquidity ratios are given below in a chart:

Chart 1: Liquidity Position of Honeywell for the last five years

In this section the Debt ratio, Debt to Equity ratio and Times Interest Earned ratio of Honeywell for the last five years have been calculated. The debt ratio represents the state of a company’s leverage (Nissim, 2001). It is calculated by dividing total liabilities by total assets. The Debt ratio of Honeywell in December 2013, December 2012, December 2011, December 2010 and December 2009 is 0.62, 0.69, 0.73, 0.72 and 0.75 respectively. The debt-equity ratio represents the proportion of debt and equity that are used to finance the assets. It is calculated by dividing total liabilities with total stockholders’ equity. The Debt-equity ratio of Honeywell in December 2013, December 2012, December 2011, December 2010 and December 2009 is 160%, 223%, 268%, 255% and 306% respectively. The times interest earned measures the company’s ability to pay its interest .It is calculated by dividing the interest expense with net income. The times interest earned ratio of Honeywell in December 2013, December 2012, December 2011, December 2010 and December 2009 is 0.083, 0.120, 0.202, 0.197 and 0.3.respectively. We can conclude from these ratios that Honeywell’s capability to meet its long-term debt obligations is in an increasing trend .The trend of its debt ratios are given below in a chart:

Chart 2: Long term debt paying ability of Honeywell for the last five years

In this section the profitability ratios of Honeywell for the last five years have been calculated. Profitability ratio measures a company’s capability to generate revenues in comparison with its costs and other expenses that are incurred in a period of time. (Morley, 1984). I have estimated the profit margin ratio, return on asset and return on equity ratio .The profit margin ratio assesses how much of each dollar the company retains in its earnings from its sales. It is calculated by dividing net income with total revenues. The Profit margin ratio of Honeywell in December 2013, December 2012, December 2011, December 2010 and December 2009 is 10%, 8%, 5%, 6% and 5% respectively. The return on assets (ROA) assesses how efficiently the management is utilizing the company’s assets to generate earnings. It is calculated by dividing net income with total assets. The ROA ratio of Honeywell in December 2013, December 2012, December 2011, December 2010 and December 2009 is 9%, 7%, 5%, 5% and 4% respectively. The return on equity (ROE) assesses the firm’s profitability by finding out how much earnings the company is generating with the money invested by equity holders. It is calculated by dividing net income applicable to common stockholders’ with the total stockholders’ equity. The ROE ratio of Honeywell in December 2013, December 2012, December 2011, December 2010 and December 2009 is 23%, 23%, 17%, 18% and 17% respectively. We can conclude from these ratios that profitability is in an increasing trend and they are consistent. The trend of its profitability ratios are given below in a chart:

Chart 3: Profitability of Honeywell for the last five years

In this section the asset utilization and management efficiency ratios of Honeywell for the last five years have been calculated. I have estimated the total asset turnover, inventory turnover and account receivable turnover. The total asset turnover measures a firm’s efficiency in generating earnings by using its assets. (Horrigan, 1967)It is calculated by dividing total revenue with average total assets. The total asset turnover of Honeywell in December 2013, December 2012, December 2011, December 2010 and December 2009 is 0.9, 0.9, 0.9, 0.9and 0.8 respectively. The inventory turnover assesses a firm’s ability to manage and maintain its inventory. It is calculated by dividing cost of revenue with the average inventory. The inventory turnover of Honeywell in December 2013, December 2012, December 2011, December 2010 and December 2009 is 7,7,7,7 and 7 respectively .The account receivable turnover assesses the firm’s efficiency in providing credit and collecting debts. It is calculated by dividing net total revenues with average account receivables. The account receivable turnover of Honeywell in December 2013, December 2012, December 2011, December 2010 and December 2009 is 5,5,5,5 and 10 respectively. These ratios are more or less consistent over the five years. So, we can conclude that the firm is showing efficiency in asset utilization and management. The trend of its efficiency ratios are given below in a chart:

Chart 4: Asset Utilization ratio of Honeywell for the last five years

In this section the price to earnings ratio, earnings per share ratio and dividend payout ratio of Honeywell for the last five years have been calculated. The earnings multiplier assesses a firm’s current share price compared to the firm’s earning (Nissim, 2001) .It is estimated by dividing price per share with earnings per share. The price to earnings ratio of Honeywell in December 2013, December 2012, December 2011, December 2010 and December 2009 is 15,16,23,17and 17 respectively. The earning per share (EPS) is part of the company’s profit that is assigned to each outstanding share. It is estimated by dividing net income applicable to common shareholders’ with number of shares outstanding. The earnings per share ratio of Honeywell in December 2013, December 2012, December 2011, December 2010 and December 2009 is 5.05, 3.74, 2.41, 2.50and 2.0 respectively. Here we can see that the trend of EPS signifies that the organization is earning satisfactory return for its stockholders. The dividend payout ratio is a tool which determines the organization’s percentage of earnings paid to its stockholders. It is estimated by dividing dividend per share with earning per share. The dividend payout of Honeywell in December 2013, December 2012, December 2011, December 2010 and December 2009 is 1.68, 1.53, 1.37, 1.21 and 1.21 respectively (NASDAQ, 2014). The trend of its market measures are given below in a chart:

Chart 5: Market measures of Honeywell for the last five years

Comparative Analysis with Major Competitor and Industry

In this section I have shown the multiples and different ration analysis of Honeywell and that of the respective industry. This section represents the available comparable ratios that are collected from websites cited in the references. In this section the comparable ratios and multiples of Honeywell Corporation and of the respective Business Software & Service industry is analyzed. Here I have considered available comparable ratios of the industry from the website cited in the reference page. The analysis includes P/E ratio, ROE ratio, dividend yield, debt to equity ratio, price to book value ratio, profit margin, and the market capital. The table below shows the results of each ratio of Honeywell and the respective industry:

Figure 5: Comparative Analysis with Industry, in 2013

Comparables	Industry	Honeywell
Market Capitalization:(in billions)	$8,823.0	$ 74.3
Price / Earnings:	22.7	15.38
Price / Book:	15.40	4.13
Net Profit Margin	9.5%	10.1%
Return on Equity	14.00%	23%
Total Debt / Equity	479.00	160.00
Dividend Yield	2.20%	2.50%

The above table shows that Market Capitalization of Honeywell is 0.84% of the industry. The Price/earnings ratio and Price/Book value ratio of Honeywell are lower than that of the industry average.Net profit margin of Honeywell is higher than that of the industry. Return on Equity of Honeywell is very high than that of the industry average. Debt to equity ratio is lower than that of the industry. It indicates a positive result of the company. The company is providing higher dividend yield than that of the industry.

The table below represents the comparison between the selected company and the largest competitor selected as the benchmark company:

Figure 6: Comparative Analysis with major competitor, in 2013

Financial diagnostic categories	Chosen company (Honeywell)	Benchmark competitor (Boeing)
1.) Liquidity of short-term assets	Current ratio	1.49	Current ratio	1.26
	Cash ratio	0.57	Cash ratio	0.30
	Quick ratio	1.13	Quick ratio	0.42
2.) Long-term debt-paying ability	Debt ratio	0.62	Debt ratio	0.84
	Debt-equity ratio	0.39	Debt-equity ratio	0.54
3.) Profitability	Net income/sales (profit margin)	0.10	Net income/sales (profit margin)	0.05
	Net income/assets (ROA)	0.09	-Net income/assets (ROA)	0.05
	Net income/shareholder equity (ROE)	0.23	Net income/shareholder equity (ROE)	0.31
4.) Asset utilization/ management efficiency	Total asset turnover	0.89	Total asset turnover	0.95
	Inventory turnover measures	6.65	Inventory turnover measures	1.82
	Accounts receivable turnover	5.11	Accounts receivable turnover	14.25
5.) Market measures	Price/earnings ratio	15.38	Price/earnings ratio	17.06
	Earnings per common share	5.05	Earnings per common share	6.03
	Dividend payout	0.33	Dividend payout	1.94

Honeywell has higher liquidity position than the benchmark competitor. Honeywell has lower leverage than the benchmark company. We can also see that Honeywell has better profitability status than the benchmark company. But the benchmark company has higher ROE than Honeywell. The efficiency level of both of the organizations is reasonable. The market measures of both companies are also satisfactory.

Analysis of Key Statistics

The total dollar value of all outstanding shares of Honeywell is $74.26 billion. The PEG ratio is 1.65 against its projected 5-year growth. So, it indicates a positive result. The adjusted EPS is 4.99 which is satisfactory. Beta coefficient is 1.29.It is not perfectly correlated with the market. The 52-week change and S&P 52-week change show that the share price has fluctuated slightly.50 day moving average price is $93.21 and 200-day moving average price is $91.96. The expected dividend in the current year is 1.8.The 5-year average dividend yield is 2.5% and also forward annual dividend yield is 1.9%. There is a table below which presents the key statistics of the company:

Figure 7: Key Statistics in 2013

Market Cap	74.26 B
PEG Ratio (5 yr expected):	1.65
Diluted EPS	4.99
Beta:	1.29
52-Week Change	23.71%
S&P500 52-Week Change	24.78%
50-Day Moving Average	93.21
200-Day Moving Average	91.96
Forward Annual Dividend Rate	1.8
Forward Annual Dividend Yield	1.90%
Trailing Annual Dividend Yield	1.76
Trailing Annual Dividend Yield	1.90%
5 Year Average Dividend Yield	2.50%
Payout Ratio	34.00%

Source: Yahoo Finance

Historical Stock Price Analysis

We have collected the historical monthly prices data of the 5 years starting from 2009 to 2013. The purpose of this data collection is to forecast the next year’s stock price. I have used moving average for this purpose. At first, I opened Microsoft excel software and then data analysis toolpack to estimate the moving average. From this analysis, I conclude that the stock price is $87.63 for the next year.

To decide if the corporation’s stock is a good buy or sell the historical monthly prices data of the 5 years period from January 2010 to December 2013 of Honeywell Corporation is used here. To forecast the stock price for the next year I have used the moving average technique in the excel spreadsheet from data analysis tool pack. From the moving average method, the forecasted stock price is $37.33 for the next year. There is as graph below which presents the firm’s historical share price and the trend of the forecasted value through moving average:

Chart 6: Forecasted future price of Honeywell

The above forecast is reasonable, reliable and in line with the firm’s continuing high performance and high profitability. The dividend payment forecast is 1.9%. This is in line with the firm’s forecasted price.

Relevant Information Analysis

Honeywell’s capital structure represents that it is using 39% of equity and 61% of debt to finance its activities. Although it may seem higher but it is much lower than the industry benchmark. Again, it makes Honeywell exposed to financial risk. Honeywell’s dividend policy is motivating and attractive to investors. It shows stability and consistency during the last five years. Honeywell has low price to earnings ratio compared to that of industry average. It signifies that Honeywell is a less risky corporation to invest in. The volatility of its stock is low according to the experts’ opinion. The market information of this company is also available. The stocks are fairly valued. The bankruptcy risk is very low. It has a low-key hype condition. It almost mirrors the market. So, all these information provides a positive sign that it will provide a high performance in the long run. The Honeywell is also a great place for the employees. With its global customers, broad range of industries and combination of innovative technologies offer dynamic career opportunities to the employees. Employee review of the company showed-Honeywell is a great place to work, ensures equality, rewards better performance, provides pleasant work environment, emphasize team work and interpersonal relationship building, productive and great place for shaping future career (Employee Review, 2014). So Honeywell obviously is a great place to invest my human and intellectual capital.

Honeywell is a Fortune 100 diversified technology leader. It is also tapping natural gas and oil sector in Asia. (Press Release, 2014). The company is taking enormous forward looking initiatives to maximize the performance. They have brought huge change in the corporate ledaership. (Press Release, 2014). They have added up to dated technology for better performnece. The company’s organic segment is growing at 7% for last two years. Their pension costs are mark to the market. The company beat earnings expectations of $1 per share and saw its EPS climb 15% on 2012. (Foster, 2012) They are implenting unique strategical tactics to beat their major competitor like Boeing. So investor experienced a thriving business model of Honeywell which is an impressive feat for the future investment.

Recommendation & Justification

From above mentioned analysis it is clear to me that, the stock is a very good buy. I would definitely invest my financial capital in the Honeywell International Incorporation. I would also like to invest my human and intellectual capital in the firm as a respectable employee. On the basis of my above analysis and explanations it can be said that the company will have potential growth in the long-run. Honeywell is running its business with global presence in diversified fields for many years with high reputation. It is also entering new markets and new business fields. The performance of Honeywell aligns with the high profitability, efficiency and continuous development. The company is also competing efficiently and tactically with competitors. So adding Honeywell in my portfolio will enhance value of the portfolio manifold.

References

Boeing. (2014). The Boeing Company. Retrieved June 22, 2014, from Boeing.com: http://www.boeing.com/boeing

Employee Review. (2014, June). Honeywell Employer Reviews. Retrieved June 22, 2014, from Indeed: http://www.indeed.com/cmp/Honeywell/reviews

Finance, Y. (2014). Stock Market, Quotes, News. . Retrieved June 22, 2014, from Yahoo Finance: http://finance.yahoo.com

Foster, M. (2012, January 27). Do Honeywell's Bad Earnings Make it a Good Buy? Retrieved June 23, 2014, from Benzinga: http://www.benzinga.com/news/earnings/12/01/2295349

Honeywell. (2013). Annual Report. Honeywell.

Honeywell. (2014). Honeywell -Fundamentals - Trading Statistics. Retrieved June 22, 2014, from Honeywell.com: http://investor.honeywell.com/phoenix.zhtml?c=94774&p=irol-fundTrading

Horrigan, J. (1967). An evaluation of financial ratio analysis (1st ed.). Chicago: University of Chicago.

Horrigan, J. (1978). Financial ratio analysis (1st ed.). New York: Arno Press.

Morley, M. (1984). Ratio analysis (1st ed.). : Published for the Institute of Chartered Accountants of Scotland . Berkshire, England: Gee & Co.

NASDAQ. (2014). Company Performance.

Nissim, D. &. (2001). Ratio analysis and equity valuation: From research to practice. Review Of Accounting Studies , 109-154.

Press Release. (2014). Honeywell Automation, Safety Technology Selected For Third Phase Of Central Asia-to-China Natural Gas Pipeline Project. Honeywell.

Appendix

A 1: Income Statement- Honeywell International Incorporation

Income Statement (USD $ in millions)	Honeywell
Period Ending	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009
Total Revenue	39,055	37,665	36,529	32,350	29,951
Cost of Revenue	28,364	28,291	28,556	24,721	23,260
Gross Profit	10,691	9,374	7,973	7,629	6,691
Research Development	-	-	-	-	-
Selling General and Administrative	5,190	5,218	5,399	4,618	4,323
Non Recurring	8	2	36	(42)	47
Total Operating Expenses	5,198	5,220	5,435	4,576	4,370
Operating Income or Loss	5,493	4,154	2,538	3,053	2,321
Total Other Income/Expenses Net	246	72	120	55	101
Earnings Before Interest And Taxes	5,739	4,226	2,658	3,108	2,422
Interest Expense	327	351	376	386	458
Income Before Tax	5,412	3,875	2,282	2,722	1,964
Income Tax Expense	1,450	944	417	765	436
Net Income	3,962	2,931	1,865	1,957	1,528
Net Income To Common Shares	3,962	2,931	1,865	1,957	1,528
EPS	5.05	3.74	2.41	2.50	2.00
Shares	784	783	775	783	764
DPS	1.68	1.53	1.37	1.21	1.21
Price per share	77.73	58.71	54.87	43.18	33.27

A 2: Balance Sheet of Honeywell International Incorporation

Balance Sheet (USD $ in millions)	Honeywell
Period Ending	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009
Cash And Cash Equivalents	6,422	4,634	3,698	2,650	2,801
Short Term Investments	1,671	631	484	455	381
Net Receivables	7,909	7,376	7,228	6,841	6,274
Inventory	4,293	4,235	4,264	3,822	3,446
Other Current Assets	869	722	460	1,718	1,034
Total Current Assets	21,164	17,598	16,134	15,486	13,936
Long Term Investments	393	623	362	413	262
Property Plant and Equipment	5,278	5,001	4,804	4,724	4,847
Goodwill	13,046	12,425	11,858	11,275	10,494
Intangible Assets	2,514	2,449	2,477	2,537	2,174
Other Assets	3,040	3,757	4,041	3,196	3,963
Deferred Long Term Asset Charges	-	-	132	203	317
Total Assets	45,435	41,853	39,808	37,834	35,993
Accounts Payable	5,174	4,736	4,738	4,199	3,633
Short/Current Long Term Debt	2,028	1,101	674	889	1,361
Other Current Liabilities	6,979	7,208	6,863	6,636	6,153
Total Current Liabilities	14,181	13,045	12,275	11,724	11,147
Long Term Debt	6,801	6,395	6,881	5,755	6,246
Other Liabilities	6,182	8,810	9,170	9,053	9,197
Deferred Long Term Liability Charges	804	628	676	636	542
Total Liabilities	27,968	28,878	29,002	27,168	27,132
Stockholders' Equity
Common Stock	958	958	958	958	958
Retained Earnings	20,383	17,799	16,083	15,097	14,023
Other Stockholder Equity	(3,874)	(5,782)	(6,235)	(5,389)	(6,120)
Total Stockholder Equity	17,467	12,975	10,806	10,666	8,861

A 3: Cash Flow statement of Honeywell International Incorporation

Cash Flow (USD $ in millions)	Honeywell
Period Ending	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009
Net Income	3,962	2,926	2,067	2,022	1,548
Depreciation	989	926	957	987	957
Total Cash Flow From Operating Activities	4,335	3,517	2,833	4,203	3,946
Capital Expenditures	(947)	(884)	(798)	(651)	(609)
Investments	(1,012)	(544)	187	(1,618)	(524)
Total Cash Flows From Investing Activities	(1,959)	(1,428)	(611)	(2,269)	(1,133)
Dividends Paid	(1,353)	(1,211)	(1,091)	(944)	(918)
Total Cash Flows From Financing Activities	(433)	(1,206)	(1,114)	(2,047)	(2,152)
Effect Of Exchange Rate Changes	(155)	53	(60)	(38)	75
Change In Cash and Cash Equivalents	1,788	936	1,048	(151)	736

A 4: Owners’ equity statement- Honeywell International Incorporation

Owner's Equity Statement (USD $ in millions)	Honeywell
Common stock and paid-in capital	2013	2012	2011	2010	2009
Common Stock	958	958	958	958	958
Additional Paid-in Capital	4,682	4,358	4,157	3,977	3,823
Balance, end of period	5,640	5,316	5,115	4,935	4,781
Retained earnings (deficit)
Balance, beginning of period	17,799	16,083	15,097	14,023	13,391
Comprehensive Net income	3,924	2,926	2,067	2,022	1,548
Others	(1,340)	(1,210)	(1,081)	(948)	(916)
Balance, end of period	20,383	17,799	16,083	15,097	14,023
Treasury Stock	-9374	-8801	-8948	-8299	-8955

Accumulated Other Comprehensive Loss	818	-1339	-1444	-1067	-948
Non-controlling Interest	112	90	96	121	110
Total stockholders’ equity	17,579	13,065	10,902	10,787	9,011

A 5: Income statement of The Boeing Company

Income Statement (USD $ in millions)	Boeing
Period Ending	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009
Total Revenue	86,623	81,698	68,735	64,306	68,281
Cost of Revenue	73,268	68,644	55,867	51,843	56,540
Gross Profit	13,355	13,054	12,868	12,463	11,741
Research Development	3,071	3,298	3,918	4,121	6,506
Selling General and Administrative	3,956	3,717	3,408	3,644	3,364
Total Operating Expenses	7,027	7,015	7,326	7,765	9,870
Operating Income or Loss	6,328	6,039	5,542	4,698	1,871
Total Other Income/Expenses Net	299	337	348	326	201
Earnings Before Interest And Taxes	6,627	6,376	5,890	5,024	2,072
Interest Expense	386	463	498	516	339
Income Before Tax	6,241	5,913	5,392	4,508	1,733
Income Tax Expense	1,646	2,007	1,382	1,196	396
Discontinued Operations	1	3	(7)	4	23
Net Income	4,596	3,909	4,003	3,316	1,360
Net Income To Common Shares	4,596	3,909	4,003	3,316	1,360
EPS	6.03	5.15	5.38	4.50	1.89
Shares	762	759	744	737	720
DPS	1.94	1.76	1.68	1.68	1.68
Price Per Share	102.8966667	70.2533333	66.5025	60.26	39.78583333

A 6: Balance sheet of The Boeing Company

Balance Sheet (USD $ in millions)	Boeing
Period Ending	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009
Cash And Cash Equivalents	9,088	10,341	10,049	5,359	9,215
Short Term Investments	6,170	3,217	1,223	5,158	2,008
Net Receivables	6,546	5,608	5,793	5,422	5,785
Inventory	42,912	37,751	32,240	24,317	16,933
Other Current Assets	358	392	505	316	1,334
Total Current Assets	65,074	57,309	49,810	40,572	35,275
Long Term Investments	1,204	1,180	1,043	1,111	1,030
Property Plant and Equipment	10,224	9,660	9,313	8,931	8,784
Goodwill	5,043	5,035	4,945	4,937	4,319
Intangible Assets	3,052	3,111	3,044	2,979	2,877
Other Assets	5,127	5,848	5,939	6,004	6,706
Deferred Long Term Asset Charges	2,939	6,753	5,892	4,031	3,062
Total Assets	92,663	88,896	79,986	68,565	62,053
Accounts Payable	9,498	9,394	8,406	7,715	7,096
Short/Current Long Term Debt	1,563	1,436	2,353	948	707
Other Current Liabilities	40,425	34,152	30,515	26,732	25,080
Total Current Liabilities	51,486	44,982	41,274	35,395	32,883
Long Term Debt	8,072	8,973	10,018	11,473	12,217
Other Liabilities	1,106	1,795	1,029	1,010	1,364
Deferred Long Term Liability Charges	17,002	27,179	24,057	17,825	13,364
Total Liabilities	77,666	82,929	76,378	65,703	59,828
Stockholders' Equity
Common Stock	5,061	5,061	5,061	5,061	5,061
Retained Earnings	32,964	30,037	27,524	24,784	22,746
Other Stockholder Equity	(23,028)	(29,131)	(28,977)	(26,983)	(25,582)
Total Stockholder Equity	14,997	5,967	3,608	2,862	2,225

A7: Cash Flow statement of The Boeing Company

Cash Flow (USD $ in millions)	Boeing
Period Ending	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009
Net Income	4,585	3,900	4,018	3,307	1,312
Depreciation	1,844	1,811	1,675	1,746	1,678
Total Cash Flow From Operating Activities	8,179	7,508	4,023	2,952	5,603
Capital Expenditures	(2,047)	(1,606)	(1,619)	(1,062)	(1,159)
Investments	(2,941)	(2,020)	3,961	(3,123)	(1,588)
Total Cash Flows From Investing Activities	(5,154)	(3,757)	2,369	(4,831)	(3,794)
Dividends Paid	(1,467)	(1,322)	(1,244)	(1,253)	(1,220)
Total Cash Flows From Financing Activities	(4,249)	(3,477)	(1,700)	(1,962)	4,094
Effect Of Exchange Rate Changes	(29)	18	(2)	(15)	44
Change In Cash and Cash Equivalents	(1,253)	292	4,690	(3,856)	5,947

A 8: Owners’ equity statement of The Boeing Company

Owner's Equity Statement (USD $ in millions)	Boeing
Common stock and paid-in capital	2013	2012	2011	2010	2009
Common Stock	5,061	5,061	5,061	5,061	5,061
Additional Paid-in Capital	4,415	4,122	4,033	3,866	3,724
Balance, end of period	9,476	9,183	9,094	8,927	8,785
Retained earnings (deficit)
Balance, beginning of period	30,037	27,524	24,784	22,746	22,675
Comprehensive Net income	4,585	3,900	4,018	3,307	1,312
Others	(1,658)	(1,387)	(1,278)	(1,269)	(1,241)
Balance, end of period	32,964	30,037	27,524	24,784	22,746
Treasury Stock	(17,671)	(15,937)	(16,603)	(17,187)	(15,911)
Share-Value Trust	-	-	-	-	(1,615)
Accumulated Other Comprehensive Loss	(9,894)	(17,416)	(16,500)	(13,758)	(11,877)
Non-controlling Interest	122	100	93	96	97
Total stockholders’ equity	14,997	5,967	3,608	2,862	2,225

A 9: Ratios of Honeywell International Incorporation

Chosen company	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009
-Current ratio	1.5	1.3	1.3	1.3	1.3
-Cash ratio	0.6	0.4	0.3	0.3	0.3
-Quick ratio	1.1	1.0	0.9	0.8	0.8
-Debt ratio	0.62	0.69	0.73	0.72	0.75
-Debt-equity ratio	1.60	2.23	2.68	2.55	3.06
-Times interest earned	0.083	0.120	0.202	0.197	0.300
-profit margin	10%	8%	5%	6%	5%
-ROA	9%	7%	5%	5%	4%
-ROE	23%	23%	17%	18%	17%
-Total asset turnover	0.9	0.9	0.9	0.9	0.8
-Inventory turnover	7	7	7	7	7
-Accounts receivable turnover	5	5	5	5	10
-Price/earnings ratio	15	16	23	17	17
-Earnings per common share	5.05	3.74	2.41	2.50	2.00
-Dividend payout	33%	41%	57%	48%	61%

A 10: Ratios of the Boeing Company

Benchmark competitor	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009
-Current ratio	1	1	1	1	1
-Cash ratio	0	0	0	0	0
-Quick ratio	0	0	0	0	1
-Debt ratio	84%	93%	95%	96%	96%
-Debt-equity ratio	518%	1390%	2117%	2296%	2689%
-Times interest earned	0.083986075	0.118444615	0.124406695	0.155609168	0.24926471
-profit margin	5%	5%	6%	5%	2%
-ROA	5%	4%	5%	5%	2%
-ROE	31%	66%	111%	116%	61%
-Total asset turnover	1.0	1.0	0.9	1.0	1.1
-Inventory turnover measures	2	2	0	0	0
-Accounts receivable turnover	14	14	12	11	12
-Price/earnings ratio	17	14	12	13	21
-Earnings per common share	6.03	5.15	5.38	4.50	1.89
-Dividend payout	0.32172471	0.341747573	0.312267658	0.373333333	0.88888889

A 11: Moving Average Price Data

Date	Adj Close*	Moving Average
		87.63
		86.13
12/2/2013	88.48	83.45	4.8
11/1/2013	86.77	82.46	3.3
10/1/2013	83.13	81.37	5.6
9/3/2013	80.44	80.74	6.1
8/1/2013	83.8	77.20	7.2
7/1/2013	79.86	75.65	6.6
6/3/2013	78.55	72.70	7.4
5/1/2013	73.2	71.29	8.2
4/1/2013	75.2	67.78	8.2
3/1/2013	69.71	65.07	7.3
2/1/2013	68.97	62.50	5.2
1/2/2013	64.67	61.06	3.9
12/3/2012	61.56	60.04	3.7
11/1/2012	61.26	59.08	4.0
10/1/2012	60.37	57.61	4.0
9/4/2012	58.48	56.18	4.1
8/1/2012	58.4	56.88	3.3
7/2/2012	55.94	58.42	2.9
6/1/2012	54.21	60.13	3.1
5/1/2012	60.48	59.52	4.3
4/2/2012	60.57	57.76	5.9
3/1/2012	59.35	55.93	8.8
2/1/2012	58.64	53.34	8.8
1/3/2012	55.28	49.43	8.3
12/1/2011	53.88	47.38	8.1
11/1/2011	50.86	48.43	9.8
10/3/2011	43.55	53.75	10.5
9/1/2011	47.74	57.62	7.9
8/1/2011	54.01	60.18	4.9
7/1/2011	59.49	60.33	2.9
6/1/2011	59.37	59.91	4.5
5/2/2011	61.67	58.12	6.2
4/1/2011	59.96	55.97	7.8
3/1/2011	58.09	53.41	8.7
2/1/2011	56.32	50.28	9.7
1/3/2011	53.49	47.19	8.4
12/1/2010	50.41	43.58	7.0
11/1/2010	46.93	42.49	3.3
10/1/2010	44.22	40.75	4.9
9/1/2010	39.59	41.63	4.7
8/2/2010	43.66	43.01	4.9
7/1/2010	38.99	45.19	4.5
6/1/2010	42.24	44.52	4.9
5/3/2010	47.81	41.56	4.9
4/1/2010	45.51	39.59	3.9
3/1/2010	40.25	39.09	2.9
2/1/2010	38.92	38.12	2.5
1/4/2010	39.61	37.29	1.9
12/1/2009	38.75	36.59	3.3
11/2/2009	36	36.26	3.5
10/1/2009	37.11	34.42	3.8
9/1/2009	36.66	33.42	4.1
8/3/2009	35.01	32.14	5.0
7/1/2009	31.59	30.85	4.8
6/1/2009	33.65	28.42	4.3
5/1/2009	31.17	28.80
4/1/2009	27.74	30.53
3/2/2009	26.34
2/2/2009	32.32
1/2/2009	32.93