Eaton Corporation PLC (ETN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 555,000 | 488,000 | 294,000 | 297,000 | 438,000 |
| Short-term investments | US$ in thousands | 1,525,000 | 2,121,000 | 261,000 | 271,000 | 664,000 |
| Total current liabilities | US$ in thousands | 7,857,000 | 7,747,000 | 6,375,000 | 7,212,000 | 5,926,000 |
| Cash ratio | 0.26 | 0.34 | 0.09 | 0.08 | 0.19 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($555,000K
+ $1,525,000K)
÷ $7,857,000K
= 0.26
The cash ratio for Eaton Corporation PLC has shown fluctuations over the past five years. Starting at 0.19 in December 31, 2020, the ratio decreased to 0.08 by December 31, 2021, indicating lower liquidity. However, the ratio improved slightly to 0.09 in December 31, 2022. Subsequently, there was a significant increase in liquidity as the cash ratio rose to 0.34 by December 31, 2023, suggesting a healthier position in terms of cash availability relative to current liabilities. In December 31, 2024, the ratio slightly decreased to 0.26, but it still remained at a strong level compared to the previous years. Overall, the trend in the cash ratio reflects varying liquidity positions for Eaton Corporation PLC during the period under consideration.
Peer comparison
Dec 31, 2024