Eaton Corporation PLC (ETN)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 38.19% | 38.26% | 37.97% | 37.52% | 36.82% | 35.54% | 34.51% | 33.64% | 33.18% | 32.83% | 32.55% | 32.36% | 32.28% | 32.14% | 32.23% | 30.80% | 30.52% | 30.54% | 30.99% | 32.61% |
| Operating profit margin | 18.90% | 18.51% | 18.12% | 17.13% | 16.66% | 15.23% | 14.16% | 12.81% | 11.15% | 11.47% | 10.90% | 11.52% | 12.54% | 12.34% | 12.54% | 10.81% | 10.21% | 10.19% | 10.72% | 12.81% |
| Pretax margin | 18.36% | 18.24% | 18.07% | 17.19% | 16.50% | 15.88% | 14.66% | 14.27% | 14.02% | 13.31% | 15.56% | 15.05% | 14.75% | 14.47% | 11.69% | 9.36% | 9.78% | 9.37% | 9.99% | 12.50% |
| Net profit margin | 15.25% | 15.31% | 15.12% | 14.38% | 13.87% | 13.24% | 12.29% | 12.00% | 11.86% | 11.36% | 11.70% | 11.21% | 10.92% | 10.60% | 9.86% | 8.05% | 7.90% | 7.53% | 8.03% | 10.19% |
The profitability ratios of Eaton Corporation PLC have shown a positive trend over the period under consideration.
1. Gross Profit Margin: Eaton's gross profit margin has steadily increased from 32.61% as of March 31, 2020, to 38.19% as of December 31, 2024. This indicates an improvement in the efficiency of the company's production and pricing strategies.
2. Operating Profit Margin: The operating profit margin also displayed a positive trajectory, rising from 12.81% on March 31, 2020, to 18.90% on December 31, 2024. This suggests that Eaton effectively managed its operating expenses over time to generate higher profits from its core business activities.
3. Pretax Margin: Eaton Corporation PLC has shown consistent growth in its pretax margin, increasing from 12.50% as of March 31, 2020, to 18.36% as of December 31, 2024. This signifies the company's ability to generate higher profits before accounting for taxes.
4. Net Profit Margin: The net profit margin of Eaton Corporation PLC improved from 10.19% on March 31, 2020, to 15.25% on December 31, 2024. This indicates that the company effectively managed its overall expenses and taxes to generate increased net profit relative to its revenue.
Overall, the increasing trend in profitability margins reflects Eaton's efficient operational management and ability to translate its revenue into higher profits over the period analyzed.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 9.89% | 9.60% | 9.27% | 8.83% | 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% |
| Return on total capital | 25.39% | 23.85% | 22.87% | 21.42% | 20.64% | 19.01% | 17.71% | 15.71% | 13.58% | 14.40% | 13.16% | 13.81% | 15.18% | 15.22% | 15.67% | 12.73% | 11.96% | 12.73% | 14.28% | 18.73% |
| Return on equity (ROE) | 20.52% | 19.71% | 18.99% | 17.63% | 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% |
Eaton Corporation PLC's profitability ratios demonstrate a generally positive trend over the analyzed periods.
1. Operating return on assets (Operating ROA) has shown improvement from 8.67% in March 2020 to 12.25% in December 2024, indicating the company's ability to generate profits from its operating activities over its assets.
2. Return on assets (ROA) has also displayed an upward trajectory, increasing from 6.90% in March 2020 to 9.89% in December 2024. This signifies the efficiency of Eaton's asset utilization in generating profits.
3. Return on total capital has increased significantly from 18.73% in March 2020 to 25.39% in December 2024, reflecting the company's profitability in relation to its total capital employed.
4. Return on equity (ROE) has witnessed steady growth, rising from 14.93% in March 2020 to 20.52% in December 2024, indicating the shareholders' return on their invested equity capital.
Overall, Eaton Corporation PLC has demonstrated consistent improvements in its profitability ratios over the analyzed periods, reflecting efficient utilization of assets, capital, and equity to generate returns for its stakeholders.