Eaton Corporation PLC (ETN)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 3,794,000 | 3,768,000 | 3,650,000 | 3,401,000 | 3,218,000 | 2,994,000 | 2,710,000 | 2,567,000 | 2,461,000 | 2,291,000 | 2,313,000 | 2,218,000 | 2,144,000 | 2,068,000 | 1,885,000 | 1,430,000 | 1,410,000 | 1,387,000 | 1,542,000 | 2,127,000 |
| Total stockholders’ equity | US$ in thousands | 18,488,000 | 19,117,000 | 19,219,000 | 19,292,000 | 19,036,000 | 18,383,000 | 17,953,000 | 17,449,000 | 17,038,000 | 16,068,000 | 16,380,000 | 16,620,000 | 16,413,000 | 15,971,000 | 15,408,000 | 14,995,000 | 14,930,000 | 14,476,000 | 14,188,000 | 14,245,000 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $3,794,000K ÷ $18,488,000K
= 20.52%
Eaton Corporation PLC's return on equity (ROE) has shown a positive trend over the reported periods, increasing from 14.93% as of March 31, 2020, to 20.52% as of December 31, 2024. This indicates that the company has been generating increasing profits relative to its shareholders' equity.
The fluctuation in ROE throughout the period may be attributed to various factors such as changes in the company's profitability, leverage, or efficiency in utilizing its equity capital. The decrease in ROE seen in mid-2020 and 2021 could suggest challenges faced by the company in generating profits or managing its capital effectively during those periods. However, the subsequent upward trend in ROE from 2022 onwards signifies an improvement in the company's performance and effective utilization of equity.
The consistent growth in ROE over the reporting periods reflects positively on Eaton Corporation PLC's ability to generate returns for its shareholders. Investors and stakeholders may view this trend favorably as it indicates that the company is efficiently using its equity to generate profits.
Peer comparison
Dec 31, 2024
See also:
Eaton Corporation PLC Return on Equity (ROE) (Quarterly Data)