Eaton Corporation PLC (ETN)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 38,432,000 | 35,014,000 | 34,027,000 | 31,824,000 | 32,805,000 |
| Operating ROA | 8.70% | 6.74% | 7.14% | 4.47% | 11.20% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,345,000K ÷ $38,432,000K
= 8.70%
The operating return on assets (operating ROA) of Eaton Corporation plc has shown a generally positive trend over the past five years. The operating ROA increased from 8.73% in 2019 to 10.11% in 2023, indicating an improvement in the company's ability to generate operating income from its assets.
The consistent growth in operating ROA demonstrates Eaton's efficiency in utilizing its assets to generate operating profits. This efficiency may be attributed to effective cost management, operational excellence, and strategic allocation of resources.
The company's ability to maintain and increase its operating ROA over the years reflects positively on its operational performance and management's effectiveness in driving profitability. However, it is essential to monitor future trends in operating ROA to ensure sustained operational efficiency and profitability.
Peer comparison
Dec 31, 2023