Eaton Corporation PLC (ETN)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 24,878,000 | 24,605,000 | 24,140,000 | 23,656,000 | 23,196,000 | 22,613,000 | 22,046,000 | 21,392,000 | 20,752,000 | 20,166,000 | 19,776,000 | 19,779,000 | 19,628,000 | 19,517,000 | 19,120,000 | 17,761,000 | 17,858,000 | 18,409,000 | 19,197,000 | 20,874,000 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 3,941,000 | 3,861,000 | 3,206,000 | 3,716,000 | 3,522,000 | 3,042,000 | 3,098,000 | 3,506,000 | 3,025,000 | 3,528,000 | 3,351,000 | 2,964,000 | 2,916,000 | 2,904,000 | 2,939,000 |
| Fixed asset turnover | — | — | — | — | — | 5.74 | 5.71 | 6.67 | 5.58 | 5.73 | 6.50 | 6.38 | 5.60 | 6.45 | 5.42 | 5.30 | 6.02 | 6.31 | 6.61 | 7.10 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $24,878,000K ÷ $—K
= —
The fixed asset turnover ratio is a financial metric that measures the efficiency of a company in generating revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
Analyzing the fixed asset turnover data provided for Eaton Corporation PLC over several reporting periods, we observe fluctuations in the ratio. From March 31, 2020, to June 30, 2022, the fixed asset turnover ratio ranged between 5.30 and 6.50, with fluctuations reflecting changes in how efficiently the company was using its fixed assets to generate revenue.
In particular, the ratio peaked at 7.10 on March 31, 2020, indicating a high level of efficiency in utilizing fixed assets to generate sales. However, there was a subsequent decrease in the ratio over the following quarters, reaching a low of 5.30 on March 31, 2021. This decline may suggest a decrease in sales relative to fixed asset investments during that period.
The ratio then showed some recovery, fluctuating between 5.42 and 6.67 from June 30, 2021, to March 31, 2023. Notably, the ratio increased to 6.67 on March 31, 2023, implying improved efficiency in generating revenue from fixed assets.
The data points beyond March 31, 2023, indicate a decreasing trend in the fixed asset turnover ratio, with values ranging between 5.58 and 6.50. The ratio may have been impacted by changes in the company's operations or investment in fixed assets during these periods.
Overall, the analysis of Eaton Corporation PLC's fixed asset turnover indicates fluctuations in the efficiency of utilizing fixed assets to generate revenue over the analyzed periods, with variations reflecting changes in the company's operational performance and investment strategies.
Peer comparison
Dec 31, 2024
See also:
Eaton Corporation PLC Net Fixed Asset Turnover (Quarterly Data)