Allowance for credit losses
Honeywell International Allowance for credit losses increased by 3.7% to $389.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 3.7%, from $375.00M to $389.00M. Over 5 years (FY 2020 to FY 2025), Allowance for credit losses shows an upward trend with a 28.7% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase suggests higher perceived credit risk in the loan portfolio, while a decrease suggests improved borrower creditworthiness or reduced exposure.
Detailed definition
This is a reserve established to cover estimated losses on loans or credit extensions that the company expects will not...
Peer comparison
Standard for any company with a significant financing arm; comparable to loan loss provisions in the banking sector.
bank_allowance_for_credit_lossesHistorical Data
| Q4 '21 | Q4 '22 | Q4 '23 | Q4 '24 | Q4 '25 | |
|---|---|---|---|---|---|
| Value | $260.00M | $363.00M | $196.00M | $375.00M | $389.00M |
| QoQ Change | — | +39.6% | -46.0% | +91.3% | +3.7% |
| YoY Change | — | +39.6% | -46.0% | +91.3% | +3.7% |
Allowance for credit losses at Other Companies
Frequently Asked Questions
- What is Honeywell International's allowance for credit losses?
- Honeywell International (HON) reported allowance for credit losses of $389.00M in Q4 2025.
- How has Honeywell International's allowance for credit losses changed year-over-year?
- Honeywell International's allowance for credit losses increased by 3.7% year-over-year, from $375.00M to $389.00M.
- What is the long-term trend for Honeywell International's allowance for credit losses?
- Over 5 years (2020 to 2025), Honeywell International's allowance for credit losses has grown at a 28.7% compound annual growth rate (CAGR), from $110.00M to $389.00M.
- What does allowance for credit losses mean?
- A reserve set aside to cover potential losses from loans that may not be repaid.