Search
 

Gold AHA Award Winner in Liquidity

HONEYWELL INTERNATIONAL INC.

By Staff Writer | Updated on November 06, 2007

Sometimes greatness has less to do with one sensational flash, and more to do with a sustained illuminating glow. That is certainly the case with Honeywell’s winning approach to liquidity management, which relies less on showy projects than on determined blocking and tackling. For Honeywell, the key has been to keep it global, transparent and fungible, with a goal of always having the asset or liability at the right place, at the right time and at the right rate to ensure the highest return.

The result is a laundry list of accomplishments that become even more impressive when one realizes they were achieved in less than three years. The highlights: attaining over 90% daily visibility to its global cash and investment balances; implementing cash pools in countries where it has material business operations, establishing commercial paper (CP) programs in the U.S., Europe and Canada to provide global financing flexibility; proactively renegotiating credit agreements that lowered the cost of Honeywell’s credit by $1.7 million annually; issuing notes with a present value benefit, relative to the cost of issuing at current market rates, exceeding $100 million; creating $3 billion in shareholder value and a 30% annualized return through a 2007 stock repurchase program; and funding $4.5 billion in acquisitions.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.