Eaton Corporation PLC (ETN)
Current ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 11,675,000 | 10,983,000 | 10,303,000 | 9,138,000 | 8,746,000 | 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 | 8,728,000 | 8,012,000 | 8,126,000 | 7,744,000 |
| Total current liabilities | US$ in thousands | 7,747,000 | 7,563,000 | 6,725,000 | 6,087,000 | 6,360,000 | 6,653,000 | 8,974,000 | 8,256,000 | 7,212,000 | 5,914,000 | 8,906,000 | 6,581,000 | 5,881,000 | 5,805,000 | 5,489,000 | 4,944,000 | 5,132,000 | 4,661,000 | 4,450,000 | 5,286,000 |
| Current ratio | 1.51 | 1.45 | 1.53 | 1.50 | 1.38 | 1.28 | 0.97 | 0.99 | 1.04 | 1.27 | 1.10 | 1.51 | 1.56 | 1.49 | 1.50 | 1.75 | 1.70 | 1.72 | 1.83 | 1.47 |
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 shown fluctuations over the past eight quarters. In Q4 2023, the current ratio was 1.51, indicating that the company had $1.51 in current assets for every $1 in current liabilities. This represents an improvement compared to the previous quarter where the current ratio was 1.45. The company's ability to cover its short-term obligations has been relatively stable over the past year, with current ratios ranging from 1.28 to 1.53.
It is worth noting that in Q2 and Q3 of 2022, the current ratio dropped significantly to 0.97 and 0.99, respectively, signaling potential liquidity challenges during that period. However, the company has since strengthened its current ratio, reaching a healthier level in recent quarters.
Overall, Eaton Corporation plc has exhibited reasonable liquidity levels in the most recent quarter, indicating the company's ability to meet its short-term obligations. Investors and stakeholders may find this trend in current ratio as a positive sign of the company's financial health and stability.
Peer comparison
Dec 31, 2023