Eaton Corporation PLC (ETN)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 4,701,000 | 4,554,000 | 4,373,000 | 4,053,000 | 3,864,000 | 3,443,000 | 3,122,000 | 2,741,000 | 2,313,000 | 2,313,000 | 2,155,000 | 2,279,000 | 2,461,000 | 2,408,000 | 2,398,000 | 1,920,000 | 1,824,000 | 1,876,000 | 2,057,000 | 2,673,000 |
| Total assets | US$ in thousands | 38,381,000 | 39,236,000 | 39,381,000 | 38,535,000 | 38,432,000 | 37,289,000 | 36,773,000 | 35,517,000 | 35,030,000 | 34,364,000 | 35,153,000 | 35,208,000 | 34,027,000 | 34,128,000 | 36,804,000 | 34,080,000 | 31,824,000 | 30,985,000 | 30,348,000 | 30,845,000 |
| Operating ROA | 12.25% | 11.61% | 11.10% | 10.52% | 10.05% | 9.23% | 8.49% | 7.72% | 6.60% | 6.73% | 6.13% | 6.47% | 7.23% | 7.06% | 6.52% | 5.63% | 5.73% | 6.05% | 6.78% | 8.67% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $4,701,000K ÷ $38,381,000K
= 12.25%
Operating ROA for Eaton Corporation PLC has shown a fluctuating trend over the past few years. The ratio declined from 8.67% as of March 31, 2020, to a low of 5.63% by March 31, 2021, indicating a decrease in the company's ability to generate profits from its assets. However, there was a gradual improvement in operating ROA from June 30, 2021, reaching 12.25% by December 31, 2024.
The upward trend in operating ROA suggests that Eaton Corporation PLC has been more efficient in generating operating profits relative to its total assets in recent periods. The company's performance improved significantly in the latter half of 2023 and continued to strengthen through 2024, indicating better asset utilization and operational efficiency.
Overall, the increasing trend in operating ROA is a positive indicator of Eaton Corporation PLC's operational effectiveness and profitability, showcasing improvements in the company's ability to generate earnings from its asset base over the analyzed period.
Peer comparison
Dec 31, 2024