Eaton Corporation PLC (ETN)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 11,801,000 | 12,152,000 | 12,652,000 | 11,853,000 | 11,675,000 | 10,983,000 | 10,303,000 | 9,138,000 | 8,761,000 | 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 |
| 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 |
| Current ratio | 1.50 | 1.53 | 1.56 | 1.56 | 1.51 | 1.45 | 1.53 | 1.50 | 1.37 | 1.28 | 0.97 | 0.99 | 1.04 | 1.27 | 1.10 | 1.51 | 1.55 | 1.49 | 1.50 | 1.75 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $11,801,000K ÷ $7,857,000K
= 1.50
The current ratio of Eaton Corporation PLC has been fluctuating over the past few years, indicating changes in the company's liquidity position. The current ratio measures the company's ability to meet its short-term liabilities with its current assets.
From March 31, 2020, to December 31, 2022, the current ratio showed a gradual decline from 1.75 to 0.97, suggesting potential issues with the company's ability to cover its short-term obligations. However, there was a slight improvement in the ratio in the following quarters, reaching 1.56 by June 30, 2024.
Overall, while there were fluctuations in the current ratio over the period, Eaton Corporation PLC maintained a current ratio above 1, indicating that the company had sufficient current assets to cover its short-term liabilities. Investors and stakeholders need to monitor this ratio to ensure the company's ongoing ability to meet its financial obligations in the short term.
Peer comparison
Dec 31, 2024