Eaton Corporation PLC (ETN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 24,878,000 | 23,196,000 | 20,752,000 | 19,628,000 | 17,858,000 |
| Total current assets | US$ in thousands | 11,801,000 | 11,675,000 | 8,761,000 | 7,511,000 | 9,178,000 |
| Total current liabilities | US$ in thousands | 7,857,000 | 7,747,000 | 6,375,000 | 7,212,000 | 5,926,000 |
| Working capital turnover | 6.31 | 5.91 | 8.70 | 65.65 | 5.49 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $24,878,000K ÷ ($11,801,000K – $7,857,000K)
= 6.31
The working capital turnover for Eaton Corporation PLC has shown fluctuating trends over the past five years. In 2020, the working capital turnover was 5.49, indicating that the company generated $5.49 in revenue for every dollar of working capital invested. This ratio saw a substantial increase in 2021 to 65.65, suggesting a significant improvement in efficiency in utilizing working capital to generate sales.
However, in 2022, the working capital turnover decreased to 8.70, which is still above the 2020 level but lower than the previous year. This decline may indicate a decrease in efficiency in managing working capital to generate revenue. In 2023 and 2024, the working capital turnover ratios remained relatively stable at 5.91 and 6.31, respectively.
Overall, Eaton Corporation PLC's working capital turnover has shown mixed performance in recent years, with significant fluctuations. It is essential for the company to continually monitor and optimize its working capital management to ensure efficient utilization and maximize revenue generation.
Peer comparison
Dec 31, 2024