Eaton Corporation PLC (ETN)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 4,566,000 | 3,827,000 | 2,911,000 | 2,896,000 | 1,746,000 |
| Revenue | US$ in thousands | 24,878,000 | 23,196,000 | 20,752,000 | 19,628,000 | 17,858,000 |
| Pretax margin | 18.35% | 16.50% | 14.03% | 14.75% | 9.78% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $4,566,000K ÷ $24,878,000K
= 18.35%
Eaton Corporation PLC's pretax margin has shown a positive trend over the years, indicating improving profitability before taxes. The pretax margin increased from 9.78% in December 31, 2020, to 18.35% in December 31, 2024. This signifies that for every dollar of revenue generated, the company's pre-tax earnings have been progressively increasing, reflecting efficient cost management and potentially higher operating income. The steady improvement in pretax margin suggests effective operational performance and strategic decision-making by the company's management, enhancing shareholder value and financial stability. Overall, the rising pretax margin is a positive indicator of Eaton Corporation PLC's financial health and profitability.
Peer comparison
Dec 31, 2024