Eaton Corporation PLC (ETN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,107,000 | 20,562,000 | 20,114,000 | 18,008,000 | 21,230,000 |
| Property, plant and equipment | US$ in thousands | 3,530,000 | 3,146,000 | 3,064,000 | 2,964,000 | 3,496,000 |
| Fixed asset turnover | 6.55 | 6.54 | 6.56 | 6.08 | 6.07 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $23,107,000K ÷ $3,530,000K
= 6.55
The fixed asset turnover ratio for Eaton Corporation plc has been relatively stable over the past five years, ranging between 6.02 and 6.60 times. This ratio indicates that Eaton is effectively utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio suggests that the company is efficiently utilizing its fixed assets to generate revenue.
The slight fluctuations in the ratio over the years may be due to changes in the company's sales volume, asset base, or operational efficiency. Overall, the trend indicates a consistent and efficient use of fixed assets in generating sales for Eaton Corporation plc.
It is important for Eaton to continue monitoring and managing its fixed asset turnover ratio to ensure continued efficiency in utilizing its fixed assets for revenue generation.
Peer comparison
Dec 31, 2023