Eaton Corporation PLC (ETN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,627,000 | 3,822,000 | 2,077,000 | 1,501,000 | 863,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 18,488,000 | 19,036,000 | 17,038,000 | 16,413,000 | 14,930,000 |
| Return on total capital | 25.03% | 20.08% | 12.19% | 9.15% | 5.78% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,627,000K ÷ ($—K + $18,488,000K)
= 25.03%
Eaton Corporation PLC's return on total capital has shown significant improvement over the past five years, increasing from 5.78% in December 31, 2020, to 25.03% in December 31, 2024. This upward trend indicates a positive performance in utilizing both equity and debt to generate profits. The consistent growth in return on total capital suggests that the company is effectively leveraging its resources and capital structure to create value for shareholders. This enhanced efficiency and profitability indicate strong management and strategic decision-making by Eaton Corporation PLC in optimizing its capital allocation and operational performance.
Peer comparison
Dec 31, 2024