Eaton Corporation PLC (ETN)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,632,000 | 3,822,000 | 2,077,000 | 1,501,000 | 863,000 |
| Total assets | US$ in thousands | 38,381,000 | 38,432,000 | 35,030,000 | 34,027,000 | 31,824,000 |
| Operating ROA | 12.07% | 9.94% | 5.93% | 4.41% | 2.71% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $4,632,000K ÷ $38,381,000K
= 12.07%
The operating return on assets (operating ROA) for Eaton Corporation PLC has shown a consistent upward trend over the past five years, reflecting improving operational efficiency and asset utilization.
From December 31, 2020, where the operating ROA stood at 2.71%, there has been a steady increase in subsequent years. By December 31, 2024, the operating ROA had risen to 12.07%, indicating a substantial enhancement in the company's ability to generate operating income from its assets.
This positive trend suggests that Eaton Corporation PLC has been effectively managing its assets to generate higher levels of operating income, which could be attributed to factors like improved cost control, revenue growth, and better resource allocation.
Overall, the increasing operating ROA demonstrates Eaton Corporation PLC's strength in utilizing its assets efficiently to drive profitability and create value for its shareholders.
Peer comparison
Dec 31, 2024