Eaton Corporation PLC (ETN)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 36.11% | 35.23% | 33.98% | 32.97% | 32.57% | 32.17% | 34.03% | 34.26% | 33.91% | 34.16% | 32.44% | 30.85% | 31.10% | 30.79% | 30.87% | 32.29% | 32.46% | 32.38% | 32.37% | 46.10% |
| Operating profit margin | 14.47% | 14.05% | 12.76% | 11.94% | 12.10% | 9.16% | 11.81% | 12.60% | 12.07% | 12.87% | 10.76% | 7.67% | 7.89% | 14.99% | 14.72% | 17.05% | 17.23% | 15.60% | 17.18% | 34.08% |
| 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% |
| Net profit margin | 13.93% | 13.30% | 12.39% | 12.12% | 11.97% | 11.47% | 11.44% | 10.90% | 10.66% | 10.28% | 9.83% | 8.05% | 7.83% | 7.51% | 8.05% | 10.24% | 10.41% | 11.18% | 10.26% | 8.09% |
Eaton Corporation plc has shown a consistent improvement in its profitability ratios over the past eight quarters. The gross profit margin has increased from 32.36% in Q1 2022 to 36.36% in Q4 2023, indicating efficient cost management and pricing strategies.
Similarly, the operating profit margin has steadily risen from 12.73% in Q1 2022 to 16.75% in Q4 2023, reflecting the company's ability to control operating expenses while increasing revenue. The pretax margin also shows a positive trend, climbing from 13.31% in Q2 2022 to 16.50% in Q4 2023, indicating improved profitability before accounting for taxes.
Moreover, the net profit margin has consistently increased from 11.21% in Q1 2022 to 13.87% in Q4 2023, showcasing Eaton Corporation plc's ability to generate more profit from its revenue after accounting for all expenses and taxes. This sustained improvement in profitability ratios reflects the company's strong operational performance and financial health.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.70% | 8.48% | 7.59% | 7.12% | 7.10% | 5.32% | 6.79% | 7.28% | 7.14% | 7.59% | 5.61% | 4.00% | 4.47% | 8.94% | 9.29% | 11.48% | 11.15% | 10.46% | 11.45% | 28.99% |
| Return on assets (ROA) | 8.37% | 8.03% | 7.37% | 7.23% | 7.03% | 6.67% | 6.58% | 6.30% | 6.30% | 6.06% | 5.12% | 4.20% | 4.43% | 4.48% | 5.08% | 6.90% | 6.74% | 7.49% | 6.84% | 6.88% |
| Return on total capital | 17.57% | 17.20% | 15.54% | 14.49% | 14.60% | 11.38% | 14.58% | 15.43% | 14.79% | 16.22% | 13.39% | 9.75% | 11.17% | 12.92% | 14.48% | 19.38% | 17.22% | 22.66% | 23.40% | 56.78% |
| Return on equity (ROE) | 16.90% | 16.29% | 15.09% | 14.71% | 14.44% | 14.26% | 14.12% | 13.35% | 13.06% | 12.95% | 12.23% | 9.54% | 9.44% | 9.58% | 10.87% | 14.93% | 13.75% | 15.08% | 13.52% | 13.42% |
The profitability ratios of Eaton Corporation plc show a consistent trend of improvement over the quarters in terms of operational efficiency and return on investments.
- Operating return on assets (Operating ROA) has been increasing steadily from 8.55% in Q4 2022 to 10.11% in Q4 2023, indicating that the company is becoming more efficient in generating profits from its assets.
- Return on assets (ROA) also demonstrates a positive trend, improving from 7.03% in Q4 2022 to 8.37% in Q4 2023, which suggests that Eaton Corporation plc is utilizing its assets more effectively to generate earnings.
- Return on total capital has shown consistent growth, from 11.66% in Q4 2022 to 13.73% in Q4 2023, indicating that the company is delivering increasing returns for both debt and equity capital providers.
- Return on equity (ROE) has seen a gradual improvement, climbing from 14.45% in Q4 2022 to 16.90% in Q4 2023, signaling that Eaton Corporation plc is delivering higher returns to its shareholders.
Overall, the profitability ratios of Eaton Corporation plc reflect positive trends in operational efficiency and profitability, indicating a strong performance and effective management of assets and capital over the analyzed quarters.