Eaton Corporation PLC (ETN)
Working capital 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 |
| Total current assets | US$ in thousands | 11,801,000 | 12,152,000 | 12,652,000 | 11,853,000 | 11,675,000 | 10,983,000 | 10,303,000 | 9,138,000 | 8,761,000 | 8,540,000 | 8,687,000 | 8,194,000 | 7,511,000 | 7,487,000 | 9,789,000 | 9,905,000 | 9,178,000 | 8,671,000 | 8,213,000 | 8,670,000 |
| Total current liabilities | US$ in thousands | 7,857,000 | 7,941,000 | 8,120,000 | 7,613,000 | 7,747,000 | 7,563,000 | 6,725,000 | 6,087,000 | 6,375,000 | 6,653,000 | 8,974,000 | 8,256,000 | 7,212,000 | 5,914,000 | 8,906,000 | 6,581,000 | 5,926,000 | 5,805,000 | 5,489,000 | 4,944,000 |
| Working capital turnover | 6.31 | 5.84 | 5.33 | 5.58 | 5.91 | 6.61 | 6.16 | 7.01 | 8.70 | 10.69 | — | — | 65.65 | 12.41 | 21.65 | 5.34 | 5.49 | 6.42 | 7.05 | 5.60 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (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 shows fluctuations over the analyzed period, indicating changes in the efficiency of managing its operating liquidity. The metric measures how effectively the company utilizes its working capital to generate sales revenue.
From March 2020 to June 2021, the working capital turnover improved significantly, reaching a peak of 21.65 in June 2021. This surge suggests that Eaton Corporation PLC was able to generate a high level of sales revenue relative to its working capital during this period.
However, in the subsequent quarters, the working capital turnover began to decrease, indicating a potential decline in efficiency in utilizing working capital. By December 2024, the metric had declined to 6.31. This downward trend may imply challenges in converting working capital into sales revenue efficiently.
It is important for Eaton Corporation PLC to monitor and manage its working capital turnover effectively to ensure optimal utilization of resources and maintain a healthy liquidity position. Analyzing the reasons behind the fluctuations in this ratio can provide valuable insights into the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024
See also:
Eaton Corporation PLC Working Capital Turnover (Quarterly Data)