Eaton Corporation PLC (ETN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 18,488,000 | 19,036,000 | 17,038,000 | 16,413,000 | 14,930,000 |
| ROE | 20.52% | 16.90% | 14.45% | 13.06% | 9.44% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $3,794,000K ÷ $18,488,000K
= 20.52%
Eaton Corporation PLC has shown a positive trend in its return on equity (ROE) over the past five years. Starting at 9.44% on December 31, 2020, the ROE has steadily increased to 20.52% by December 31, 2024. This improvement indicates that Eaton Corporation PLC has been more efficient in utilizing shareholder equity to generate profits. The rising ROE reflects positively on the company's ability to generate earnings from its investments and operations relative to the amount of equity invested by shareholders. This upward trajectory signals increasing profitability and potentially strong financial performance for Eaton Corporation PLC in the recent years.
Peer comparison
Dec 31, 2024