Eaton Corporation PLC (ETN)
Pretax margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 3,822,000 | 3,586,000 | 3,227,000 | 3,050,000 | 2,907,000 | 2,682,000 | 3,075,000 | 2,975,000 | 2,894,000 | 2,821,000 | 2,233,000 | 1,657,000 | 1,741,000 | 1,720,000 | 1,913,000 | 2,607,000 | 2,589,000 | 2,783,000 | 2,505,000 | 2,460,000 |
| Revenue (ttm) | US$ in thousands | 23,106,000 | 22,505,000 | 21,868,000 | 21,178,000 | 20,562,000 | 19,970,000 | 20,218,000 | 20,349,000 | 20,114,000 | 20,118,000 | 19,180,000 | 17,774,000 | 18,008,000 | 18,475,000 | 19,163,000 | 20,776,000 | 21,229,000 | 21,373,000 | 21,496,000 | 26,924,000 |
| Pretax margin | 16.54% | 15.93% | 14.76% | 14.40% | 14.14% | 13.43% | 15.21% | 14.62% | 14.39% | 14.02% | 11.64% | 9.32% | 9.67% | 9.31% | 9.98% | 12.55% | 12.20% | 13.02% | 11.65% | 9.14% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $3,822,000K ÷ $23,106,000K
= 16.54%
The pretax margin of Eaton Corporation plc has shown a fluctuating trend over the past eight quarters. In Q4 2023, the pretax margin stood at 16.50%, which represented an improvement compared to the previous quarter at 15.88%. Despite some variability, the pretax margin has generally been on an upward trajectory since Q1 2022 when it was at 14.28%.
The highest pretax margin during this period was observed in Q3 2022 at 15.56%, while the lowest was in Q1 2023 at 14.28%. Overall, Eaton Corporation plc has demonstrated a consistent effort to improve its pretax margin, indicating effective cost management and operational efficiency across multiple quarters.
It is essential for the company to continue monitoring and managing its pretax margin closely to ensure sustainable profitability and demonstrate financial health to investors and stakeholders.
Peer comparison
Dec 31, 2023