Eaton Corporation PLC (ETN)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 555,000 | 473,000 | 540,000 | 473,000 | 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 |
| Short-term investments | US$ in thousands | 1,525,000 | 1,521,000 | 2,241,000 | 1,969,000 | 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 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.26 | 0.25 | 0.34 | 0.32 | 0.34 | 0.25 | 0.20 | 0.09 | 0.09 | 0.08 | 0.07 | 0.06 | 0.08 | 0.11 | 0.06 | 0.20 | 0.19 | 0.13 | 0.09 | 0.08 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($555,000K
+ $1,525,000K
+ $—K)
÷ $7,857,000K
= 0.26
The quick ratio of Eaton Corporation PLC has shown fluctuations over the past few quarters. The quick ratio was relatively low in the first half of 2020, ranging from 0.08 to 0.09. It then improved to 0.19 by the end of December 2020, indicating a stronger ability to meet short-term obligations with liquid assets.
However, there were subsequent declines in the quick ratio in the first half of 2021, reaching as low as 0.06 in June 2021. The ratio improved in the following quarters but remained below the levels seen at the end of 2020.
There was a significant improvement in the quick ratio in the second half of 2023, reaching 0.34 by December 31, 2023, indicating a robust ability to cover short-term liabilities with liquid assets. The ratio stayed relatively stable in the first half of 2024, ranging between 0.32 to 0.34.
Overall, the quick ratio of Eaton Corporation PLC has shown variability, with periods of improvement and decline. It is important for stakeholders to closely monitor this ratio to assess the company's short-term liquidity position.
Peer comparison
Dec 31, 2024