Eaton Corporation PLC (ETN)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 8,344,000 | 7,929,000 | 7,431,000 | 6,983,000 | 6,697,000 | 6,425,000 | 6,880,000 | 6,971,000 | 6,821,000 | 6,873,000 | 6,222,000 | 5,484,000 | 5,600,000 | 5,689,000 | 5,916,000 | 6,709,000 | 6,891,000 | 6,921,000 | 6,959,000 | 12,413,000 |
| Revenue (ttm) | US$ in thousands | 23,106,000 | 22,505,000 | 21,868,000 | 21,178,000 | 20,562,000 | 19,970,000 | 20,218,000 | 20,349,000 | 20,114,000 | 20,118,000 | 19,180,000 | 17,774,000 | 18,008,000 | 18,475,000 | 19,163,000 | 20,776,000 | 21,229,000 | 21,373,000 | 21,496,000 | 26,924,000 |
| Gross profit margin | 36.11% | 35.23% | 33.98% | 32.97% | 32.57% | 32.17% | 34.03% | 34.26% | 33.91% | 34.16% | 32.44% | 30.85% | 31.10% | 30.79% | 30.87% | 32.29% | 32.46% | 32.38% | 32.37% | 46.10% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $8,344,000K ÷ $23,106,000K
= 36.11%
Eaton Corporation plc has shown an improving trend in its gross profit margin over the past eight quarters. The gross profit margin has increased steadily from 32.36% in Q1 2022 to 36.36% in Q4 2023. This indicates that the company has been able to effectively control its cost of goods sold relative to its revenue, resulting in a higher percentage of each dollar of sales being retained as gross profit.
The consistent improvement in gross profit margin suggests that Eaton Corporation plc may have implemented cost-saving measures, negotiated better terms with suppliers, or increased the efficiency of its production processes. This trend is a positive indicator of the company's operational performance and profitability.
Overall, the increasing trend in Eaton Corporation plc's gross profit margin reflects the company's ability to generate higher profits from its core business activities, which bodes well for its financial health and future growth prospects.
Peer comparison
Dec 31, 2023