Eaton Corporation PLC (ETN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 11,675,000 | 8,746,000 | 7,511,000 | 9,178,000 | 8,728,000 |
| Total current liabilities | US$ in thousands | 7,747,000 | 6,360,000 | 7,212,000 | 5,881,000 | 5,132,000 |
| Current ratio | 1.51 | 1.38 | 1.04 | 1.56 | 1.70 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $11,675,000K ÷ $7,747,000K
= 1.51
The current ratio of Eaton Corporation plc has displayed variability over the past five years, ranging from 1.04 in December 2021 to 1.70 in December 2019. The ratio improved in December 2020 and 2019, indicating a stronger ability to cover its short-term obligations with current assets during those periods. However, a decline was observed in December 2022 and a slight increase in December 2023, indicating a potential deterioration in the company's liquidity position in the short term. Overall, the current ratio has been relatively healthy, staying above 1.0 in all years, suggesting that Eaton Corporation plc generally has sufficient current assets to meet its short-term liabilities.
Peer comparison
Dec 31, 2023