Eaton Corporation PLC (ETN)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,794,000 | 3,218,000 | 2,462,000 | 2,144,000 | 1,410,000 |
| Total assets | US$ in thousands | 38,381,000 | 38,432,000 | 35,030,000 | 34,027,000 | 31,824,000 |
| ROA | 9.89% | 8.37% | 7.03% | 6.30% | 4.43% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $3,794,000K ÷ $38,381,000K
= 9.89%
The return on assets (ROA) of Eaton Corporation PLC has shown a positive trend over the past five years, increasing steadily from 4.43% in December 2020 to 9.89% in December 2024. This indicates an improvement in the company's ability to generate profits relative to its total assets.
The consistent increase in ROA suggests that Eaton Corporation PLC has been effectively utilizing its assets to generate earnings. A higher ROA indicates better asset utilization efficiency and profitability.
Overall, the upward trend in ROA reflects positively on Eaton Corporation PLC's operational performance and financial management, demonstrating an increasing ability to generate profits from its assets over the years.
Peer comparison
Dec 31, 2024