Eaton Corporation PLC (ETN)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.50 | 1.51 | 1.37 | 1.04 | 1.55 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $11,801,000K ÷ $7,857,000K
= 1.50
Eaton Corporation PLC's current ratio has exhibited fluctuations over the past five years. As of December 31, 2020, the company had a current ratio of 1.55, indicating that its current assets exceeded its current liabilities, reflecting a strong liquidity position. However, by the end of 2021, the current ratio decreased to 1.04, suggesting a potential strain on short-term liquidity as current liabilities approached current assets.
In 2022, the current ratio improved to 1.37, showing a recovery in liquidity compared to the previous year. By the end of 2023, the ratio increased further to 1.51, indicating a healthier balance between current assets and liabilities. The current ratio remained stable at 1.50 as of December 31, 2024, signaling continued adequacy in meeting short-term obligations.
Overall, Eaton Corporation PLC's current ratio experienced variability but generally maintained a position where current assets were able to cover current liabilities, with improvements in recent years suggesting enhanced liquidity management.
Peer comparison
Dec 31, 2024