Eaton Corporation PLC (ETN)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 3,822,000 | 2,907,000 | 2,894,000 | 1,741,000 | 2,589,000 |
| Revenue | US$ in thousands | 23,107,000 | 20,562,000 | 20,114,000 | 18,008,000 | 21,230,000 |
| Pretax margin | 16.54% | 14.14% | 14.39% | 9.67% | 12.20% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $3,822,000K ÷ $23,107,000K
= 16.54%
The pretax margin of Eaton Corporation plc has shown a positive trend over the past five years. In 2023, the pretax margin improved to 16.50%, marking a significant increase from the previous year's ratio of 14.03%. This improvement suggests that Eaton Corporation plc was able to effectively control its operating expenses relative to its total revenue, thereby enhancing its profitability before taxes. Comparing the 2023 figure to 2020 and 2019, where pretax margins were at 9.78% and 12.11% respectively, demonstrates a substantial growth in profitability over the years. Overall, the upward trend in pretax margin indicates the company's efficiency in managing costs and generating profits before tax expenses.
Peer comparison
Dec 31, 2023