Eaton Corporation PLC (ETN)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,694,000 | 4,560,000 | 4,395,000 | 4,133,000 | 3,929,000 | 3,494,000 | 3,180,000 | 2,741,000 | 2,313,000 | 2,313,000 | 2,155,000 | 2,295,000 | 2,492,000 | 2,431,000 | 2,415,000 | 1,909,000 | 1,786,000 | 1,843,000 | 2,026,000 | 2,668,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 25.39% | 23.85% | 22.87% | 21.42% | 20.64% | 19.01% | 17.71% | 15.71% | 13.58% | 14.40% | 13.16% | 13.81% | 15.18% | 15.22% | 15.67% | 12.73% | 11.96% | 12.73% | 14.28% | 18.73% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,694,000K ÷ ($—K + $18,488,000K)
= 25.39%
Eaton Corporation PLC has shown a positive trend in its return on total capital over the analyzed period from March 31, 2020, to December 31, 2024. The return on total capital started at 18.73% in March 31, 2020, and showed a slight decline to 11.96% by December 31, 2020. However, the company was able to gradually improve its return on total capital, reaching 25.39% by December 31, 2024.
The fluctuation in the return on total capital during this period indicates that Eaton Corporation PLC effectively managed its capital resources and investments. The company's return on total capital peaked at 25.39% by the end of December 31, 2024, reflecting strong capital utilization and generating attractive returns for its investors.
Overall, Eaton Corporation PLC's improving return on total capital demonstrates efficient capital allocation and effective utilization of resources to drive profitability and create value for its stakeholders.
Peer comparison
Dec 31, 2024