Eaton Corporation PLC (ETN)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 555,000 | 473,000 | 540,000 | 473,000 | 488,000 | 348,000 | 353,000 | 235,000 | 294,000 | 231,000 | 364,000 | 237,000 | 297,000 | 271,000 | 279,000 | 354,000 | 438,000 | 429,000 | 292,000 | 239,000 |
| Short-term investments | US$ in thousands | 1,525,000 | 1,521,000 | 2,241,000 | 1,969,000 | 2,121,000 | 1,558,000 | 977,000 | 289,000 | 261,000 | 287,000 | 259,000 | 268,000 | 271,000 | 389,000 | 261,000 | 945,000 | 664,000 | 334,000 | 204,000 | 178,000 |
| 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 |
| Cash ratio | 0.26 | 0.25 | 0.34 | 0.32 | 0.34 | 0.25 | 0.20 | 0.09 | 0.09 | 0.08 | 0.07 | 0.06 | 0.08 | 0.11 | 0.06 | 0.20 | 0.19 | 0.13 | 0.09 | 0.08 |
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 of Eaton Corporation PLC has shown fluctuations over the past few years, ranging from as low as 0.06 to as high as 0.34. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
It is observed that the cash ratio was below 0.1 for some periods, indicating a relatively lower level of cash reserves compared to its current liabilities. This may suggest a potential liquidity risk for the company during those periods. However, there were also instances where the cash ratio increased significantly, reaching levels above 0.3, indicating a strong ability to cover short-term obligations with available cash.
Overall, the trend in the cash ratio shows variability, which could be influenced by factors such as cash management practices, operational performance, and economic conditions. Analyzing the changes in the cash ratio over time can provide insights into the company's liquidity position and its ability to meet short-term financial obligations.
Peer comparison
Dec 31, 2024