Eaton Corporation PLC (ETN)
Total 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 |
| Total assets | US$ in thousands | 38,432,000 | 35,014,000 | 34,027,000 | 31,824,000 | 32,805,000 |
| Total asset turnover | 0.60 | 0.59 | 0.59 | 0.57 | 0.65 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $23,107,000K ÷ $38,432,000K
= 0.60
The total asset turnover ratio for Eaton Corporation plc has remained relatively stable over the past five years. The ratio ranged from 0.56 to 0.65, with a slight upward trend in recent years. This indicates that Eaton Corporation plc generates approximately $0.60 in sales for every dollar invested in total assets. A higher total asset turnover ratio is generally preferred as it signifies efficient utilization of assets to generate revenue. Therefore, Eaton Corporation plc's total asset turnover ratio suggests that the company is effectively utilizing its assets to generate sales revenue.
Peer comparison
Dec 31, 2023
Company name
Symbol
Total asset turnover
Eaton Corporation PLC
ETN
0.60
Curtiss-Wright Corporation
CW
0.61
Enerpac Tool Group Corp
EPAC
0.76