Eaton Corporation PLC (ETN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.20% | 100.00% | 33.19% | 32.28% | 30.52% |
| Operating profit margin | 18.62% | 16.48% | 10.01% | 7.65% | 4.83% |
| Pretax margin | 18.35% | 16.50% | 14.03% | 14.75% | 9.78% |
| Net profit margin | 15.25% | 13.87% | 11.86% | 10.92% | 7.90% |
Based on the provided data, Eaton Corporation PLC has shown steady improvement in its profitability ratios over the years.
1. Gross Profit Margin: The company's gross profit margin has shown a consistent increase from 30.52% in December 2020 to 38.20% in December 2024. This indicates the company's ability to efficiently manage its production costs and generate higher profits from its core operations.
2. Operating Profit Margin: Eaton Corporation PLC has significantly improved its operating profit margin from 4.83% in December 2020 to 18.62% in December 2024. This suggests the company has been successful in controlling its operating expenses and increasing the efficiency of its business operations.
3. Pretax Margin: The pretax margin has also shown a positive trend, increasing from 9.78% in December 2020 to 18.35% in December 2024. This reflects Eaton Corporation's effective management of its pre-tax earnings relative to its total revenue.
4. Net Profit Margin: The net profit margin has experienced a consistent growth trajectory, rising from 7.90% in December 2020 to 15.25% in December 2024. This indicates the company's ability to effectively manage its overall expenses and generate higher net income relative to its total revenue.
Overall, Eaton Corporation PLC's profitability ratios demonstrate a positive trend, showing improved efficiency and profitability in managing its business operations over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.07% | 9.94% | 5.93% | 4.41% | 2.71% |
| Return on assets (ROA) | 9.89% | 8.37% | 7.03% | 6.30% | 4.43% |
| Return on total capital | 25.03% | 20.08% | 12.19% | 9.15% | 5.78% |
| Return on equity (ROE) | 20.52% | 16.90% | 14.45% | 13.06% | 9.44% |
Eaton Corporation PLC has shown a positive trend in profitability ratios over the years based on the provided data.
- Operating return on assets (Operating ROA) measures the efficiency of the company in generating operating income from its assets. Eaton's Operating ROA has steadily increased from 2.71% in 2020 to 12.07% in 2024, indicating a consistent improvement in operational efficiency.
- Return on assets (ROA) reflects the company's overall profitability by evaluating how effectively it utilizes its assets to generate profits. Eaton's ROA has shown a similar upward trajectory, rising from 4.43% in 2020 to 9.89% in 2024, suggesting improved asset utilization and profitability.
- Return on total capital indicates the return generated on both debt and equity capital invested in the business. Eaton's return on total capital has increased significantly from 5.78% in 2020 to 25.03% in 2024, demonstrating the company's ability to generate higher returns on the capital employed.
- Return on equity (ROE) measures the return generated on shareholder's equity investment. Eaton's ROE has also exhibited a positive trend, climbing from 9.44% in 2020 to 20.52% in 2024, indicating the company's ability to generate higher returns for its shareholders over the years.
Overall, Eaton Corporation PLC has demonstrated improving profitability ratios, reflective of its efficient asset utilization, effective capital allocation, and increasing returns for its shareholders.