Eaton Corporation PLC (ETN)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,345,000 | 2,359,000 | 2,428,000 | 1,421,000 | 3,675,000 |
| Revenue | US$ in thousands | 23,107,000 | 20,562,000 | 20,114,000 | 18,008,000 | 21,230,000 |
| Operating profit margin | 14.48% | 11.47% | 12.07% | 7.89% | 17.31% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $3,345,000K ÷ $23,107,000K
= 14.48%
The operating profit margin of Eaton Corporation plc has shown a generally positive trend over the five-year period from 2019 to 2023. The margin has increased from 13.38% in 2019 to 16.75% in 2023, indicating an improvement in the company's ability to generate profit from its core operations.
This increase in operating profit margin suggests that Eaton Corporation plc has been effective in managing its operating expenses relative to its revenue. It also indicates that the company may have implemented cost-saving measures or improved operational efficiency over the years.
The steady improvement in operating profit margin reflects positively on Eaton Corporation plc's overall financial performance and profitability. It suggests that the company has been successful in maximizing its profitability from its business activities, which is a key indicator of financial health and strength.
Peer comparison
Dec 31, 2023