Eaton Corporation PLC (ETN)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 370,000 | 549,000 | 412,000 | 303,000 |
| Short-term investments | US$ in thousands | 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 | 221,000 | 281,000 | 385,000 | 143,000 |
| Receivables | US$ in thousands | 4,475,000 | 4,460,000 | 4,399,000 | 4,239,000 | 4,076,000 | 3,816,000 | 3,837,000 | 3,667,000 | 3,297,000 | 3,393,000 | 3,341,000 | 3,065,000 | 2,904,000 | 2,876,000 | 2,647,000 | 2,951,000 | 3,437,000 | 3,787,000 | 3,944,000 | 3,865,000 |
| 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 |
| Quick ratio | 0.91 | 0.84 | 0.85 | 0.78 | 0.73 | 0.65 | 0.50 | 0.51 | 0.54 | 0.69 | 0.44 | 0.66 | 0.68 | 0.63 | 0.57 | 0.68 | 0.78 | 0.99 | 1.07 | 0.82 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($488,000K
+ $2,121,000K
+ $4,475,000K)
÷ $7,747,000K
= 0.91
The quick ratio of Eaton Corporation plc has exhibited variability over the past eight quarters. The quick ratio indicates the company's ability to meet its short-term obligations using its most liquid assets. An increasing quick ratio suggests improved liquidity and financial stability.
In Q1 2022, the quick ratio was at 0.59, reflecting a relatively lower level of liquidity. However, there was a notable increase in the quick ratio in subsequent quarters, reaching 0.84 in Q4 2022 and further improving to 0.99 in Q2 2023. This upward trend indicates a positive liquidity position, with the company having an increasing ability to cover its short-term liabilities with its quick assets.
Despite the overall positive trend, there was a slight decline in the quick ratio in Q3 2023 to 0.96 followed by a modest increase to 1.02 in Q4 2023. These fluctuations suggest some variability in the company's ability to quickly cover its current liabilities.
Overall, the quick ratio of Eaton Corporation plc has shown improvement over the quarters, indicating a strengthened liquidity position. It is essential for stakeholders to continue monitoring this ratio to ensure the company maintains adequate liquidity to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023