Eaton Corporation PLC (ETN)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,218,000 | 2,462,000 | 2,144,000 | 1,410,000 | 2,211,000 |
| Total assets | US$ in thousands | 38,432,000 | 35,014,000 | 34,027,000 | 31,824,000 | 32,805,000 |
| ROA | 8.37% | 7.03% | 6.30% | 4.43% | 6.74% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $3,218,000K ÷ $38,432,000K
= 8.37%
The return on assets (ROA) for Eaton Corporation plc has shown a positive trend over the five-year period from 2019 to 2023. ROA increased from 6.74% in 2019 to 8.37% in 2023. This indicates that Eaton Corporation plc is generating more profit relative to its assets, reflecting improved efficiency in asset utilization and management. The consistent upward trend in ROA suggests that the company has been able to enhance its profitability in relation to its total assets over the years. This could be attributed to effective cost management, revenue growth, or improved operational efficiency. In conclusion, the increasing ROA reflects positively on Eaton Corporation plc's ability to generate returns from its assets and indicates a better overall financial performance.
Peer comparison
Dec 31, 2023